Stock of the Day

November 22, 2022

TJX Companies (TJX)

$121.08
-$1.90 (-1.5%)
Market Cap: $136.15B

About TJX Companies

The TJX Companies, Inc., together with its subsidiaries, operates as an off-price apparel and home fashions retailer in the United States, Canada, Europe, and Australia. It operates through four segments: Marmaxx, HomeGoods, TJX Canada, and TJX International. The company sells family apparel, including footwear and accessories; home fashions, such as home basics, furniture, rugs, lighting products, giftware, soft home products, decorative accessories, tabletop, and cookware, as well as expanded pet, and gourmet food departments; jewelry and accessories; and other merchandise. It offers its products through stores and e-commerce sites. The TJX Companies, Inc. was incorporated in 1962 and is headquartered in Framingham, Massachusetts.

TJX Companies Bull Case

Here are some ways that investors could benefit from investing in The TJX Companies, Inc.:

  • The TJX Companies, Inc. has a strong market capitalization of approximately $139.77 billion, indicating a robust financial position and stability in the retail sector.
  • Recent institutional investments, such as PineStone Asset Management Inc. increasing its stake by 0.1%, reflect confidence in the company's growth potential and stability.
  • The stock is currently trading at $124.33, which is near its twelve-month high of $128.00, suggesting strong market performance and investor interest.
  • Analysts have a positive outlook, with an average target price of $133.53 and a "Moderate Buy" rating, indicating potential for price appreciation.
  • The company has a relatively low debt-to-equity ratio of 0.35, suggesting that it is not overly reliant on debt for financing, which can be a sign of financial health.

TJX Companies Bear Case

Investors should be bearish about investing in The TJX Companies, Inc. for these reasons:

  • The stock has experienced a recent decline of 1.2%, which may indicate short-term volatility and investor uncertainty.
  • Despite positive analyst ratings, two analysts have rated the stock with a hold rating, suggesting some caution among market experts.
  • The company has a relatively high P/E ratio of 29.25, which may indicate that the stock is overvalued compared to its earnings, potentially limiting future price growth.
  • With 91.09% of the stock owned by institutional investors, there may be less room for retail investors to influence stock performance.
  • The current ratio of 1.19, while above 1, indicates that the company has just enough current assets to cover its current liabilities, which may raise concerns about liquidity in challenging market conditions.

MarketBeat: Week in Review 11/14 – 11/18

Written By Chris Markoch on 11/19/2022

Over $2 trillion of options expired on Friday. That’s typically bullish for the market, but the overall outlook for the market remains bearish. Target’s earnings report may be the harbinger of a holiday season that will come in below expectations. The layoffs in the tech sector suggest that the recession may be picking up steam. Investors looking for more hopeful news could point to Washington, D.C., where a divided government is now a certainty which means, hopefully, no new government spending to stoke inflation. Next week will be an abbreviated trading week, which may bring lower volume and higher volatility. We hope you’ll be able to spend time with those you love and the MarketBeat team will continue to monitor the volatility in this market. Here are some of the top stories our analysts covered this week.

Articles by Jea Yu

This week, Jea Yu helped investors find opportunities where they might not expect them. For example, many analysts advise investors to stay out of the tech sector. But Yu writes that when it comes to a stock like Alphabet (NASDAQ: GOOGL), the worst may already be priced into the stock which is trading near its two-year low. Another stock that investors may overlook is Airbnb (NASDAQ: ABNB). The company just posted a record profit, but some investors are concerned that the season of revenge travel may be coming to an end. If it is, someone didn’t tell Walt Disney (NYSE: DIS). The company’s theme park business continues to post strong numbers as demand is high. As Yu points out, the company’s streaming service is on a path to profitability that may set the table for a much higher stock price.

Articles by Thomas Hughes

Thomas Hughes has been keeping MarketBeat subscribers up to date on the news surrounding Mullen Automotive (NASDAQ: MULN). Like many pre-revenue companies, the news is a mixed bag. On the bright side, the company still appears to be on track to generate revenue by the end of the year. However, that is being offset by a late December vote on a potential reverse stock split. Investors should stay tuned. Hughes was also looking at the retail sector. He sees some upside for TJX Companies (NYSE: TJX) but still believes investors may get a better buying point in 2023. This week also saw the two home improvement giants deliver results. While both Home Depot (NYSE: HD) and Lowe’s (NYSE: LOW) delivered strong results, Hughes believes the state of the housing market favors Lowe’s because it has larger exposure to the DIY market.

Articles by Sam Quirke

If the recent upward move in the market has legs, investors could look at the chip sector as the signal. As Sam Quirke writes, that’s certainly what shareholders of Nvidia (NASDAQ: NVDA) hope for. Shares of NVDA stock were down nearly 70% from their all-time high late last year. A not-as-bad-as-feared earnings report and a bullish outlook from the company’s management suggests that the low may be in. As Quirke writes, that means the rally in NVDA stock may have some legs.

Articles by Chris Markoch

The energy sector remains one of the best opportunities for investors. Right now, that means looking at companies involved with natural gas. This week, Chris Markoch had his eye on three natural gas stocks for investors to watch. These are all midstream companies so what they may lack in eye-popping growth, they make up for with attractive dividends. Markoch was also looking at Advance Auto Parts (NYSE: AAP), which fell sharply after its earnings report. There could be a buying opportunity, but that’s only if you believe the company’s message that this quarter’s margin decline is truly a one-off.

Articles by Kate Stalter            

Kate Stalter wrote “one person’s problem is an opportunity for someone else” about bulk shipping stocks. Stalter used the phrase to describe how bulk shipping companies were big winners in the pandemic. However, many of these companies have begun to post lower revenue and earnings as interest rates and a recession chip away at consumer demand. That “problem” for shippers may be an opportunity for investors have eyed Carnival Corporation (NYSE: CCL). Although the cruise industry will have to navigate the current economy, cruise lines benefit as consumers shift from buying stuff to paying for experiences. Stalter also eyed the outlook for AbbVie (NYSE: ABBV) stock. The company already lost exclusivity for its cash cow, Humira, in Europe, and that will be true in the United States starting next year. Stalter offers investors her thoughts for how they may want to play the recent consolidation in ABBV stock.

Articles by MarketBeat Staff

Gold hasn’t been as much of an inflation hedge, as many investors prefer the relative safety of a strong dollar. But recent Central Bank purchases suggest that gold prices may be getting ready to soar. Investors can get indirect exposure to gold through mining stocks. The MarketBeat staff highlights Newmont Gold (NYSE: NEM) as a possible target for investors. The staff also picked through the tech sector for good value and found a mid-cap stock trading at 10-year highs. Turning their attention to the retail sector, Wayfair (NYSE: W) stock has fallen dramatically. The online home furnishings retailer was a big pandemic winner but investors are experiencing the other side of that business cycle play out as Wayfair faces heightened competition from brick-and-mortar furniture stores ramping up their e-commerce efforts.

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