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Will TJX Companies Stock Benefit from Fiscal Q2 Results?

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Strong YTD rise

TJX Companies (TJX) plans to declare its results for fiscal Q2 2019 on August 21. The period ended on August 4. As of August 15, TJX Companies stock has risen 16.9% since the company announced its results for the first quarter of fiscal 2019 in May. Overall, the company’s stock has moved up by 29.5% on a YTD (year-to-date) basis. It has outperformed the S&P 500, which has risen 5.4% since the start of 2018.

The leading off-price retailer continues to attract customers in an intensely competitive retail market. TJX Companies’ attractive value bargains have helped it get higher consumer traffic for 15 consecutive quarters.

As of August 15, the stocks of off-price retailers Ross Stores (ROST) and Burlington Stores (BURL) were up 13.6% and 32.4%, respectively, on a YTD basis.

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Analysts’ recommendations

As of August 15, TJX Companies stock was rated a “buy” by 65% of the 26 analysts covering the stock. Eight analysts had a “hold” rating, and one analyst had a “sell” recommendation. On June 11, Guggenheim raised its price target for TJX Companies from $96 to $105.

On June 21, UBS started coverage of TJX Companies with a “sell” rating and a price target of $87. On June 22, Wedbush commenced coverage of TJX Companies stock with a “neutral” rating and an initial price estimate of $100. On the same day, Credit Suisse raised its price target for TJX Companies from $90 to $100. On June 26, Atlantic Equities downgraded its rating for TJX Companies stock from “overweight” to “neutral” and assigned a price target of $90. On July 30, Cowen and Company increased its price target from $98 to $114.

As of August 15, the 12-month average price target for TJX Companies stock was $98.14, implying a potential downside of about 1.0%. Analysts’ price target for TJX Companies will likely be revised following the upcoming fiscal second-quarter results. In the next part of this series, we’ll discuss sales expectations for TJX Companies.

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