T.J. Maxx Story

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TJX -- USA Stock  

USD 52.83  0.04  0.08%

TJX Companies is scheduled to announce its earnings today. The next earnings report is expected on the 17th of November 2020. While some baby boomers are getting worried about their positions in consumer cyclical space, it is entirely reasonable to break down T.J. Maxx as a possible position for your existing portfolio. What exactly are T.J. Maxx shareholders getting in September?
Published over a month ago
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Chances of T.J. Maxx (NYSE:TJX) to slide in September
T.J. Maxx is OVERVALUED at 52.86 per share with modest projections ahead. Our recommendation module provides unbiased trade recommendation that can be used to complement current average analyst sentiment on TJX Companies. Our recommendation engine provides an advice for the company potential to grow from the perspective of an investor's risk tolerance and investing horizon.
What is the right price you would pay to acquire a share of T.J. Maxx? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our stock advisor page.

What is happening with TJX Companies this year

Annual and quarterly reports issued by TJX Companies are formal financial statements that are published yearly and quarterly and sent to T.J. Maxx stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934. Companies such as T.J. Maxx often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.

How T.J. Maxx utilizes its cash?

To perform a cash flow analysis of T.J. Maxx, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash T.J. Maxx is receiving and how much cash it distributes out in a given period. The T.J. Maxx cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. T.J. Maxx Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. T.J. Maxx reported Net Cash Flow from Operations of 4.07 Billion in 2019

Acquisition by Jose Alvarez of 1078 shares of T.J. Maxx subject to Rule 16b-3

Legal trades by T.J. Maxx insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
T.J. Maxx insider trading alert for grant of deferred stock units by Jose Alvarez, the corporate stakeholder, on 18th of September 2020. This event was filed by Tjx Companies Inc with SEC on 2020-09-18. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Is T.J. Maxx valued reasonably by the market?

Earning per share calculations of T.J. Maxx is based on official Zacks consensus of 10 analysts regarding T.J. Maxx's future annual earnings. Given the historical accuracy of 79.89%, the future earnings per share of the company is estimated to be 0.5977 with the lowest and highest values of 0.34 and 1.5, respectively. Please note that this consensus of annual earnings estimates for the firm is an estimate of EPS before non-recurring items and including employee stock options expenses.

Is T.J. Maxx a risky opportunity?

Let's check the volatility. T.J. Maxx is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind T.J. Maxx (NYSE:TJX) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. acquiring a share of a T.J. Maxx stock makes you a part-owner of that company.

TJX Companies Current Consensus

Here is the current trade recommendation based on an ongoing consensus estimate among financial analysis covering TJX Companies. The T.J. Maxx consensus assessment is calculated by taking the average estimates from all of the analysts covering T.J. Maxx

Strong Buy
19
Hold
2
Strong Buy1986.36
Buy14.55
Hold29.09
Sell00.0
Strong Sell00.0

Analysis of TJX Companies

T.J. Maxx current standard deviation rises over 2.45. As of the 19th of August, T.J. Maxx has the Risk Adjusted Performance of 0.2817, semi deviation of 1.64, and Coefficient Of Variation of 532.93. Compared to fundamental indicators, the technical analysis model makes it possible for you to check available technical drivers of TJX Companies, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We were able to break down nineteen technical drivers for TJX Companies, which can be compared to its competition. Please validate TJX Companies market risk adjusted performance, variance, as well as the relationship between the Variance and potential upside to decide if T.J. Maxx is priced fairly, providing market reflects its prevalent price of 57.87 per share. Given that TJX Companies has jensen alpha of 0.4448, we advise you to double-check TJX Companies's current market performance to make sure the company can sustain itself next year.

Our Conclusion on T.J. Maxx

While some companies within the apparel retail industry are still a little expensive, even after the recent corrections, T.J. Maxx may offer a potential longer-term growth to investors. Taking everything into account, as of the 19th of August 2020, our analysis shows that T.J. Maxx barely shadows the market. The company is overvalued and projects low probability of distress for the next 2 years. However, our current 30 days advice on the company is Strong Buy.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of TJX Companies. Please refer to our Terms of Use for any information regarding our disclosure principles.

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