Can TJX Companies Stock Recover with Fiscal 3Q18 Results?
TJX Companies (TJX) is scheduled to announce its results for fiscal 3Q18, which ended October 28, 2017, on November 14, 2017. The leading off-price retailer’s stock has fallen 9.5% on a YTD (year-to-date) basis as of November 8, 2017, despite a decent performance amid a tough retail environment.
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Stock lags peers
TJX stock has underperformed its peers and the S&P 500 Index on a YTD basis. The stock prices of Ross Stores (ROST) and Burlington Stores (BURL) have moved -2.6% and 15.1%, respectively, since the start of 2017. The S&P 500 Index has risen 15.9% on a YTD basis as of November 8.
TJX has a strong presence in the off-price retail market in nine countries. As of fiscal 2Q18, which ended on July 29, 2017, it operated 3,913 stores in the United States, Canada, the United Kingdom, Ireland, Germany, Poland, Austria, the Netherlands, and Australia. In the United States alone, the company operated 1,194 TJ Maxx stores, 1,043 Marshalls stores, 619 HomeGoods stores, and 16 Sierra Trading Post stores as of fiscal 2Q18.
TJX Companies exceeded analysts’ sales and earnings estimates for fiscal 2Q18 and raised its earnings guidance for fiscal 2018.
As of November 8, 2017, TJX stock was rated a “buy” by 23 of the 27 (85%) analysts covering the stock. It was rated a “hold” by four analysts, and none of the analysts gave it a “sell” rating. As of November 8, the 12-month average price target for TJX stock was $83.24, reflecting a 22.5% upside potential.
In this series, we’ll look at analyst expectations for TJX Companies’ sales and earnings for fiscal 3Q18. We’ll also look at expectations for the company’s margins and the company’s valuation.
Let’s start by looking at the company’s sales expectations for fiscal 3Q18.