TJX Companies had a solid quarter, outperforming the bottom line and raising profit guidance.) industry-leading position in off-price retail and quality operations will soon lead its stock price to new heights. Like Walmart , TJX Companies benefits from the high inflation and interest rate environment because shoppers are still flush but turning more to value and opportunity than ever before.
Guidance is also mixed. The company held its revenue targets steady but increased the outlook for earnings. The only bad news is that the $4.03 to $4.09 in GAAP earnings forecast for the year aligns with the analysts' consensus and would not normally be a positive catalyst. However, the cash flow, cash build, and capital returns help to offset it and have the market moving higher premarket after the release.TJX Companies' dividend isn’t all that impressive, with a yield near 1.
The post-release price action is favorable. The market is up more than 2.0% on the news, confirming support at the 30-day moving average and a long-term uptrend. The move has the market on track to retest the current high soon, and a new high could be set. In that scenario, the new high could trigger an influx of capital to drive this market up to the high end of the analyst's range near $130, another 20% upside from consensus.