TJX Companies Inc (NYSE:TJX) Lacks Value as an Investment

Shares of TJX Companies Inc (NYSE:TJX) cannot be considered a value, they simply do not fit the definition of value, but there is reason for hope, and two years from now, if analysts are right about estimates and price remains the same, we may actually see value in the stock’s price.

Stock Traders Daily recommends that investors ‘NOT OWN’ TJX based on valuation.

Sign Up for Free Trial

The stock is tradeable, but as a long term investment we see this as dead money for the next two years as the company works its way out of an earnings growth slump and starts to bring value back to the bottom line.  Right now, based on our TTM assessments of earnings growth and PE multiples, TJX trades with a PEG Ratio of 6, and our definition of value is between 0 and 1.5. 

Based on PEG, TJX will not get close to 1.5 until the end of 2016, and then it will still be above 1.5, so there is an eternity between now and when TJX MIGHT become a better value, and that assumes there are no hiccups along the way, but we believe there will be.

Although maybe not particular to TJX, and if TJX can continue to capture market share that would be great along the way, we are expecting and preparing to profit from an economic downturn.  We believe that this will put pressure on stocks, and stocks that lack value like TJX can be vulnerable to value-based retracements.  Because the PEG for TJX is 6, there’s plenty of value based retracement possible here.

Our Macroeconomic analysis, The Investment Rate, is the basis for our economic forecast.

Technical Summary

Term →Near Mid Long
Bias Weak Neutral Neutral
P1 71.88 73.39 70.08
P2 74.14 77.06 75.84
P3 76.15 80.21 81.16

Long Term Trading Plans for TJX

May 23, 2016, 10:26 am ET

The technical Summary and associated Trading Plans for TJX listed below will help you make important timing decisions for your trades. This data is based on our proprietary analysis for TJX. In addition we offer Market Timing Models and Stock Filters in the links above which may increase the proficiency of the decisions you make.

TJX - (Long) Support Plan

Buy over 70.08 target 75.84 stop loss @ 69.82.
The technical summary data tells us to buy TJX near 70.08 with an upside target of 75.84. This data also tells us to set a stop loss @ 69.82 to protect against excessive loss in case the stock begins to move against the trade. 70.08 is the first level of support below 75.57 , and by rule, any test of support is a buy signal. In this case, support 70.08 would be being tested, so a buy signal would exist.

TJX - (Short) Resistance Plan

Short under 75.84 target 70.08 stop loss @ 76.1.
The technical summary data is suggesting a short of TJX as it gets near 75.84 with a downside target of 70.08. We should have a stop loss in place at 76.1 though. 75.84 is the first level of resistance above 75.57, and by rule, any test of resistance is a short signal. In this case, if resistance 75.84 is being tested, so a short signal would exist.


TJX Long Term Analysis


TJX EPS Analysis

TJX Dividend Chart

TJX Revenue chart

TJX Growth rate - Quarterly

TJX Growth rate - Yearly

TJX PE chart

TJX PEG chart

share_linkedin