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Strength Seen in TJX (TJX): Can Its 5.0% Jump Turn into More Strength?

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TJX (TJX - Free Report) shares soared 5% in the last trading session to close at $126.05. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.4% gain over the past four weeks.

The TJX Companies’ stock is rising surrounding optimism about its ability to thrive amid economic uncertainty and supply chain disruptions caused by tariffs. The company’s strong inventory position and skill in sourcing discounted products, positions it well to attract cost-conscious consumers seeking value amid economic uncertainty.

This parent of T.J. Maxx, Marshalls and other stores is expected to post quarterly earnings of $0.90 per share in its upcoming report, which represents a year-over-year change of -3.2%. Revenues are expected to be $12.97 billion, up 3.9% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For TJX, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on TJX going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

TJX belongs to the Zacks Retail - Discount Stores industry. Another stock from the same industry, Ross Stores (ROST - Free Report) , closed the last trading session 8% higher at $137. Over the past month, ROST has returned -1.4%.

For Ross Stores, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.42. This represents a change of -2.7% from what the company reported a year ago. Ross Stores currently has a Zacks Rank of #4 (Sell).


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