T.J. Maxx Story

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TJX -- USA Stock  

USD 55.60  2.42  4.55%

T.J. Maxx Accumulated Retained Earnings Deficit are fairly stable at the moment as compared to the past year. T.J. Maxx reported Accumulated Retained Earnings Deficit of 3.72 Billion in 2019. Tax Assets is likely to rise to about 46.4 M in 2020, whereas Average Assets are likely to drop slightly above 8.2 B in 2020. This short post will break down T.J. Maxx as a possible investment alternative for your portfolios. We will provide a perspective on T.J. Maxx future direction.
Published over a month ago
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Will holding T.J. Maxx (NYSE:TJX) be justified in September 2020?
This firm has a beta of 0.0253. Let's try to break down what T.J. Maxx's beta means in this case. As returns on the market increase, T.J. Maxx returns are expected to increase less than the market. However, during the bear market, the loss on holding T.J. Maxx will be expected to be smaller as well. The beta indicator helps investors understand whether T.J. Maxx moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if T.J. Maxx deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as TJX Companies. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for T.J. Maxx

How important is T.J. Maxx's Liquidity

T.J. Maxx financial leverage refers to using borrowed capital as a funding source to finance TJX Companies ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. T.J. Maxx financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between T.J. Maxx's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for T.J. Maxx, but it might be worth checking our own buy vs. sell analysis

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?

The current indifference towards the small price fluctuations of T.J. Maxx created some momentum for investors as it was traded today as low as 52.24 and as high as 54.81 per share. The company executives did not add any value to TJX Companies investors in July. However, most investors can still diversify their portfolios with T.J. Maxx to hedge their inherited risk against high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.33. The current volatility is consistent with the ongoing market swings in July 2020 as well as with TJX Companies unsystematic, company-specific events.

Returns Breakdown

Return on Assets
Return on Equity
Return on Investment62.58
Return on Assets19.88
Return on Equity58.77
Return Capital0.48
Return on Sales0.0965

Breaking up T.J. Maxx current price slide

Total risk alpha is down to 0.13. It may suggest a possible volatility slide. As of the 19th of August, T.J. Maxx has the Semi Deviation of 1.64, risk adjusted performance of 0.2817, 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 54.36 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.

The Current Takeaway on T.J. Maxx Investment

When is the right time to buy or sell TJX Companies? Buying stocks such as T.J. Maxx isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily bases. To summarize, as of the 19th of August 2020, we believe that T.J. Maxx is currently undervalued with low probability of bankruptcy in the next two years. Our actual 30 days buy-or-sell advice on the company is Strong Hold.

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 Raphi Shpitalnik 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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