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 in -2.53% downward trend, falling for three consecutive days on December 31, 2024
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where TJX declined for three days, in of 279 cases, the price declined further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Aroon Indicator for TJX entered a downward trend on January 06, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 5 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
TJX moved above its 50-day moving average on January 08, 2025 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 332 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.
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 75, 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 consistent 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 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 (3.964). P/E Ratio (25.829) is within average values for comparable stocks, (110.742). 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 (1.139).
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General Information
a chain of retail apparels and home fashions stores
Industry ApparelFootwearRetail