A Retail Stock Ready for Growth

TJX Companies Inc. TJX Companies Inc. (NYSE: TJX) is a retailer focused on discount apparel and home fashion items like furniture and decorative accessories. Major retailers are expected to generate strong upsides as the economy recovers, and this company is already on track to address issues during the health crisis.

TJX’s retail stores have operated with limited capacity during the Coronavirus Pandemic, with some closed due to economic restrictions. The company has responded by investing heavily in its eCommerce operations. It is also working to reduce operating expenses at its distribution centers.

Analysts expect revenue of around $6.75 billion for the second quarter, which would be a 31% fall compared to the previous year. The company will announce earnings on the 19th, so investors should watch and wait for the figures before making a move on this stock.

2020 should be an outlier for this company’s fiscal performance. It has increased revenue by an average of 7.75% year over year since 2016. It is profitable with a 28.45% gross profit margin and a 12.64% EBITDA margin.

The average analyst target price of $63.23 suggests there’s still an upside to come. If this week’s financial report indicates limited damage from the Coronavirus Pandemic, it will suggest that a recovery in the company’s revenue is on the horizon. This is one of the best retail stocks to watch in 2020.

Key Data:

  • 1 Year Price Growth: 25%
  • YTD Price Growth: -2.70%
  • 3 Month Price Growth: 39%

All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.

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