The TJX Companies Inc. (NYSE: TJX) stock fell -1.19% on Friday to $62.96 against a previous-day closing price of $63.72. With 3.08 million shares changed hands, the volume of the stock remained lighter than its average volume of 5.42 million shares. During the session, the Apparel Retail company that operates in wider Consumer Cyclical sector, reached to the highest price of $65.00 whereas the lowest price it dropped to was $62.96. The 52-week range on TJX shows that it touched its highest point at $77.35 and its lowest point at $53.69 during that stretch. It currently has a 1-year price target of $76.05. With its current market cap of 73.35 billion, TJX has annualized dividend of $1.18 while the current yield stands at 1.87%. Beta for the stock currently stands at 0.90.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of TJX was down-trending over the past week, with a drop of -2.18%, but this was down by -2.22% over a month. Three-month performance surged to 10.32% while six-month performance rose 2.99%. The stock lost -9.14% in the past year, while it has lost -17.07% so far this year. A look at the trailing 12-month EPS for TJX yields 2.80 with Next year EPS estimates of 3.49. For the next quarter, that number is 0.80. This implies an EPS growth rate of 8.80% for this year and 12.51% for next year. EPS is expected to grow by 10.91% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 9.30%.
Float and Shares Shorts:
At present, 1.17 billion TJX shares are outstanding with a float of 1.16 billion shares on hand for trading. On Aug 30, 2022, short shares totaled 12.41 million, which was 1.07% higher than short shares on Jul 28, 2022. In addition to Ms. Carol M. Meyrowitz as the firm’s Exec. Chairman, Mr. Ernie L. Herrman serves as its CEO, Pres & Director.
Through their ownership of 94.18% of TJX’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 52.77% of TJX, in contrast to 41.81% held by mutual funds. Shares owned by individuals account for 0.92%. As the largest shareholder in TJX with 8.83% of the stake, Wellington Management Co. LLP holds 102,541,948 shares worth 102,541,948. A second-largest stockholder of TJX, The Vanguard Group, Inc., holds 84,912,920 shares, controlling over 7.31% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in TJX, holding 48,009,376 shares or 4.14% stake. With a 2.87% stake in TJX, the Vanguard Dividend Growth Fund is the largest stakeholder. A total of 33,263,850 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.85% of TJX stock, is the second-largest Mutual Fund holder. It holds 33,047,363 shares valued at 2.06 billion. Vanguard 500 Index Fund holds 2.26% of the stake in TJX, owning 26,210,007 shares worth 1.63 billion.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jul 29, 2022, TJX reported revenue of $11.41B and operating income of $1.09B. The EBITDA in the recently reported quarter was $1.31B and diluted EPS was $0.49.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for TJX since 25 analysts follow the stock currently. There are 16 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 7 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With TJX analysts setting a high price target of $90.00 and a low target of $65.00, the average target price over the next 12 months is $76.71. Based on these targets, TJX could surge 42.95% to reach the target high and rise by 3.24% to reach the target low. Reaching the average price target will result in a growth of 21.84% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. TJX will report FY 2023 earnings on 02/22/2023. Analysts have provided yearly estimates in a range of $3.17 being high and $3.05 being low. For TJX, this leads to a yearly average estimate of $3.10. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. The TJX Companies Inc. surprised analysts by $0.02 when it reported $0.69 EPS against a consensus estimate of $0.67. The surprise factor in the prior quarter was $0.08. Based on analyst estimates, the high estimate for the next quarter is $0.85 and the low estimate is $0.77. The average estimate for the next quarter is thus $0.80.
Summary of Insider Activity:
Insiders traded TJX stock several times over the past three months with 0 Buys and 4 Sells. In these transactions, 0 shares were bought while 126,070 shares were sold. The number of buy transactions has increased to 23 while that of sell transactions has risen to 40 over the past year. The total number of shares bought during that period was 824,819 while 678,709 shares were sold.