Why This 1 Value Stock Could Be a Great Addition to Your Portfolio
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For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.
TJX (TJX)
Based in Framingham, MA, The TJX Companies, Inc. is a leading off-price retailer of apparel and home fashions in the U.S. and worldwide. The company’s broad range of assortments at varying prices helps it to reach out to a broad range of consumers. In addition to these, The TJX Companies tries to attract consumers through rapid turn of inventories. As of Jul 29, 2023, the company operated a total of around 4,900 stores in nine countries, the United States, Canada, the United Kingdom, Ireland, Germany, Poland, Austria, the Netherlands, and Australia, and five e-commerce sites.
TJX is a Zacks Rank #3 (Hold) stock, with a Value Style Score of B and VGM Score of A. Shares are currently trading at a forward P/E of 28.4X for the current fiscal year compared to the Retail - Discount Stores industry's P/E of 20.8X. Additionally, TJX has a PEG Ratio of 3 and a Price/Cash Flow ratio of 24.6X. Value investors should also note TJX's Price/Sales ratio of 2.4X.
A company's earnings performance is important for value investors as well. For fiscal 2025, seven analysts revised their earnings estimate higher in the last 60 days for TJX, while the Zacks Consensus Estimate has increased $0.02 to $4.15 per share. TJX also holds an average earnings surprise of 4.4%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding TJX to their portfolios.
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The TJX Companies, Inc. (TJX) : Free Stock Analysis Report