After taking profits on many positions its time to get back to work. That is why I am here to breakdown $TJX.
Current Price: $51.53
52/Wk High: $64.95
52/Wk Low: $50.65
Read below for the breakdown!
$TJX is a bright spot in the retail space. The company buys large brand names inventory at fire-sale prices and offers it lower rates.
Due to COVID retail sales slowed down allowing TJX to capitalize and get cheaper inventory.
Secondly, the economy has dropped significantly and many are searching for cheaper clothing options, making TJX the perfect pick.
All the while, TJX has been prone to be extremely insulated from e-commerce competition due to its terrific business strategy.
To top all that investors got May retail sales last week, showing a pent up demand in the retail space which only makes the case for TJX even stronger.
$TJX also reported hopeful Q1 earnings. Given that the company was shut down a loss was reported of $-0.74 EPS versus the $-0.56 consensus. Their revenue was also low at $4.4 billion.
If you are wondering why the stock went up on those earnings, well the company announced Q1 that reopening was coming and now that they have reopened they are quickly on the way back.
To support their comeback TJX also has a fantastic cash position of $4.288 Billion representing a 91.84% YOY increase in their cash position.
Analysts are also bullish on the TJX with an average price target of $62.40/share representing a whopping 21.09% upside. Analysts expect sales strength to come back by year-end and for the company to easily get back on track.
Big money is also betting big with 91.21% being owned by institutions. Many big names like Vanguard Group, Black Rock, and Wellington Management Group all have positions well over $4 billion.
Overall the company is positioned great for a comeback and with the recent pullback in the works, it looks like the opportunity is here to get in at bargain prices.
Great company, stock, and I am looking to enter in the coming days as a new core position!
EAT - SLEEP - PROFIT
Disclaimer: This is not financial advice but an opinion based on independent research.