TJX (TJX, $$53.97) Q1 earnings hurt by covid-19 pandemic; CEO shows optimism on store reopenings
TJX reported earnings that were hurt by the coronavirus pandemic. But its CEO hinted at early signs of optimism from store re-openings.
In the fiscal first quarter ended May 2, the off-price department store company's revenue of $4.409 billion was less than half the year-ago level of $9.278 billion. The figure came in lower than the $5.82 billion predicted by analysts polled by Investing.com .
The company reported a net loss of - 74 cents a share, compared to analysts’ expectation of a loss of -2 cents a share. In the year-ago quarter, earnings were a positive 57 cents a share.
TJX temporarily stopped operating three online retail sites and its distribution centers, while drawing $1 billion from its credit lines and halting buybacks.
But TJX CEO Ernie Herrman sees some sanguine signs, as he mentioned that the company has witnessed “very strong sales” with their initial re-openings. But he did mention that retail environment remains uncertain. The company has opened more than 1,600 of its 4,500 stores globally so far.
The company said there will be no dividend for the first quarter, and also does not expect to pay out any in the current quarter.
TJX's RSI Indicator climbs out of oversold territory
The RSI Indicator for TJX moved out of oversold territory on October 08, 2024. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 18 similar instances when the indicator left oversold territory. In of the 18 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 15, 2024. You may want to consider a long position or call options on TJX as a result. In of 82 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for TJX just turned positive on October 16, 2024. Looking at past instances where TJX's MACD turned positive, the stock continued to rise in of 48 cases over the following month. The odds of a continued upward trend are .
TJX moved above its 50-day moving average on October 15, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where TJX advanced for three days, in of 330 cases, the price rose further within the following month. The odds of a continued upward trend are .
TJX may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
The 10-day moving average for TJX crossed bearishly below the 50-day moving average on October 10, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 20 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TJX declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for TJX entered a downward trend on October 16, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 74, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. TJX’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: TJX's P/B Ratio (15.552) is very high in comparison to the industry average of (3.843). P/E Ratio (25.829) is within average values for comparable stocks, (106.594). TJX's Projected Growth (PEG Ratio) (2.591) is slightly higher than the industry average of (1.444). Dividend Yield (0.013) settles around the average of (0.028) among similar stocks. P/S Ratio (2.131) is also within normal values, averaging (1.249).
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General Information
a chain of retail apparels and home fashions stores
Industry ApparelFootwearRetail