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Stock to watch: Is TJ Maxx (NYSE: TJX) going cheap?
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TJX Companies, the firm behind TJ Maxx in the US and TK Maxx in the UK, is due to report its second quarter results before the bell this Wednesday. The discount retailer is expected to announce better earnings and a healthy increase in revenue.Just like its clothes, Morningstar believes this stock is going cheap.
Its stock has risen since the beginning of August, now just shy of USD 54 / share.
Bridget Weishaar, Equity Analyst at Morningstar highlights TJX's good position in retail as consumers are still cautious in their spending and are very much "value-orientated".
Its stock has risen since the beginning of August, now just shy of USD 54 / share.
Bridget Weishaar, Equity Analyst at Morningstar highlights TJX's good position in retail as consumers are still cautious in their spending and are very much "value-orientated".
Morningstar gives the TJX stock a narrow moat rating. In scale, they have nine hundred buyers shopping sixteen thousand vendors, which give the firm an advantage over other companies in finding the best merchandise at the right price. The firm also has the capacity to ship the goods and localize it to tastes in each market. According to Weishaar, TJX stock has traded down off of its highs late last year due to slow same-store sales growth. She believes that was mainly due to the bad winter weather in the States rather than any competitive issues. She expects the firm to maintain mid-single-digit revenue growth through new store openings and also through comparable sales.