TJX Companies (TJX) Stock Rating Lowered by Zacks Investment Research

Zacks Investment Research downgraded shares of TJX Companies (NYSE:TJX) from a buy rating to a hold rating in a report published on Thursday.

According to Zacks, “TJX Companies has outperformed the industry in a year, courtesy of its impressive comps record. Comps have been gaining from continued rise in consumer traffic and strong merchandising policies. These factors along with TJX Companies’ off-price model, strategic store locations and impressive brands have been driving its store and online performance. This was visible in the company’s third-quarter fiscal 2019 results, wherein the top and bottom lines grew year over year and beat estimates, and customer traffic rose for the 17th straight time. The company began the fourth quarter on a strong note, which along with its constant sales-driving efforts, solid holiday season prospects and expected market share gains led to a raised view. However, the company has long been witnessing high wage costs, which along with elevated freight costs are expected to hurt margins in fiscal 2019. Also, currency woes pose threats.”

A number of other research analysts have also recently issued reports on the company. Goldman Sachs Group started coverage on TJX Companies in a research report on Monday, September 3rd. They issued a buy rating and a $63.00 target price on the stock. Citigroup lifted their target price on TJX Companies from $55.50 to $62.50 and gave the company a buy rating in a research report on Tuesday, October 16th. Deutsche Bank lifted their target price on TJX Companies from $50.00 to $52.50 and gave the company a buy rating in a research report on Monday, August 20th. DA Davidson started coverage on TJX Companies in a research report on Tuesday, September 25th. They issued a buy rating and a $65.00 target price on the stock. Finally, Cowen set a $62.50 target price on TJX Companies and gave the company a buy rating in a research report on Tuesday, September 25th. Two equities research analysts have rated the stock with a sell rating, ten have assigned a hold rating and sixteen have given a buy rating to the stock. TJX Companies presently has an average rating of Buy and an average price target of $53.19.

Shares of NYSE TJX opened at $45.86 on Thursday. The company has a current ratio of 1.55, a quick ratio of 0.77 and a debt-to-equity ratio of 0.42. TJX Companies has a 52 week low of $35.25 and a 52 week high of $56.64. The firm has a market capitalization of $56.75 billion, a P/E ratio of 22.70, a P/E/G ratio of 1.72 and a beta of 0.65.

TJX Companies (NYSE:TJX) last released its earnings results on Tuesday, November 20th. The apparel and home fashions retailer reported $0.63 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.61 by $0.02. TJX Companies had a return on equity of 59.74% and a net margin of 7.98%. The firm had revenue of $9.83 billion for the quarter, compared to analysts’ expectations of $9.50 billion. During the same quarter in the previous year, the business posted $1.00 earnings per share. The business’s revenue for the quarter was up 12.1% on a year-over-year basis. As a group, equities analysts anticipate that TJX Companies will post 2.44 EPS for the current year.

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 6th. Stockholders of record on Thursday, November 15th will be paid a dividend of $0.39 per share. This represents a $1.56 dividend on an annualized basis and a dividend yield of 3.40%. The ex-dividend date is Wednesday, November 14th. TJX Companies’s payout ratio is 38.61%.

Hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. lifted its stake in shares of TJX Companies by 1.2% in the third quarter. Vanguard Group Inc. now owns 49,232,312 shares of the apparel and home fashions retailer’s stock worth $5,515,004,000 after acquiring an additional 593,647 shares during the period. Morgan Stanley lifted its stake in shares of TJX Companies by 7.1% in the third quarter. Morgan Stanley now owns 3,380,174 shares of the apparel and home fashions retailer’s stock worth $378,648,000 after acquiring an additional 224,439 shares during the period. Kepos Capital LP lifted its stake in shares of TJX Companies by 160.7% in the third quarter. Kepos Capital LP now owns 49,627 shares of the apparel and home fashions retailer’s stock worth $5,559,000 after acquiring an additional 30,588 shares during the period. B. Riley Wealth Management Inc. acquired a new position in shares of TJX Companies in the third quarter worth approximately $313,000. Finally, TIAA CREF Investment Management LLC lifted its stake in shares of TJX Companies by 13.8% in the third quarter. TIAA CREF Investment Management LLC now owns 2,825,744 shares of the apparel and home fashions retailer’s stock worth $316,540,000 after acquiring an additional 343,053 shares during the period. 45.09% of the stock is currently owned by hedge funds and other institutional investors.

About TJX Companies

The TJX Companies, Inc operates as an off-price apparel and home fashions retailer. 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, accent furniture, lamps, rugs, wall décor, decorative accessories, giftware, lighting, soft home, tabletop, and cookware, as well as expanded pet, kids, and gourmet food departments; jewelry; and other merchandise.

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