The TJX Company
) is set to report fourth quarter fiscal 2013 results on Feb 27.
Last quarter it met expectations. Let's see how things are
shaping up for this announcement.
Growth Factors This Past Quarter
TJX Company's third quarter earnings were 17% higher than the
year-ago quarter. The earnings upside was fueled by fresh stock
in the stores, which drove up consumer traffic and resulted in
high single-digit comparable-store sales growth right through the
The company has been posting same store sales growth every
month for over two years. Well-chosen stock at the stores
improved customer traffic during the period.
Following the third-quarter results announcement, management
raised its fourth quarter and full-year 2013 earnings outlook to
reflect the consistent rise in same store sales.
The company entered the e-commerce segment through its
acquisition of Sierra Trading during the past quarter. The
acquisition should be beneficial to TJX, which is already geared
up to launch online brands for its HomeGoods and Marmaxx
An increasing number of retailers are turning focus to online
channels, which expands their reach to a greater number of
customers at a time. However rising input cost is a matter of
Our proven model does not conclusively show that TJX is likely
to beat earnings this quarter. That is because a stock needs to
have both a positive Earnings ESP and a Zacks Rank of #1, 2 or 3
for this to happen. That is not the case here as you will see
That is because the Most Accurate estimate for the next quarter
stands at $0.81 which is exactly the same as the Zacks Consensus
Estimate of $0.81.
Zacks Rank #2 (Buy):
TJX Company's Zacks Rank #2 (Buy) has little effect on the
predictive power of ESP because the Zacks #2 Rank when combined
with a 0% ESP makes surprise prediction difficult.
We caution against stocks with Zacks #4 and #5 Ranks
(Sell-rated stocks) going into the earnings announcement,
especially when the company is seeing negative estimate revisions
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows that they have the right combination of elements,
that is, a positive Zacks Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank #1, #2 or #3.
New York & Company Inc.
) with an Earnings ESP of +12.50% and a Zacks Rank #2 (Buy).
) with an Earnings ESP of +1.35% and a Zacks Rank #1 (Strong
Dollar Tree Inc.
) has an Earnings ESP of +1.01% and a Zacks Rank #3 (Hold).
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TJX COS INC NEW (TJX): Free Stock Analysis
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