TJX Companies Inc (TJX) — This retailer operates several chains of off-price apparel and home specialty stores in the United States, Canada and Europe. Its stores appeal to customers looking for brand-name merchandise at bargain prices.
Capital IQ recently raised its 12-month target price on TJX stock by $9 to $85 following the company’s most recent earnings report. TJX Companies reported earnings per share (EPS) of $0.80, beating Capital IQ’s estimates by $0.05, and raised full-year guidance for fiscal 2016 (ending in January). Solid comparable-store sales gains in the July quarter contributed to net revenue growth of 6% year over year.
Capital IQ, which has a “buy” rating on TJX stock, also increased its 2016 EPS forecast by $0.03 to $3.30 and kept its 2017 estimate at $3.70.
TJX stock has been a steady performer in an otherwise uncertain retail sector. In October, shares broke from a “V” at about $62 and ran to a high just below $70. They then consolidated between $65 and $70 for the first eight months of 2015 before breaking out again in mid-August, this time from $71 on a 3-point breakaway gap.
TJX stock spiked to almost $77, but like many breaks that leave wide gaps, shares retreated to their 50-day moving average at about $69.50. Since the uptrend has remained intact during the recent market chaos, TJX stock stands out as a buy candidate and is in a good position to make a run at its recent high.
Buy shares under $69 for a three-month target of $76, which would result in a trading profit of just over 10%.
