NEW YORK (TheStreet) -- Shares of TJX Companies Inc (TJX) finished Monday's regular trading session up 1.99% to $67.26, one day ahead of the discount apparel retailer's first quarter fiscal 2016 earnings release, before the market opens Tuesday.
For the first quarter, TJX is projected to report a profit of 66 cents per share on revenue of $6.79 billion, according to analysts surveyed by Thomson Reuters.
In the same quarter of last year, the company earned 64 cents per share on revenue of $6.49 billion.
Framingham, Mass.-based TJX Cos. is an off-price apparel and home fashions retailer operating stores including TJ Maxx, Marshalls, and Homegoods.
The company has more than 3,200 stores that offer a changing assortment of brand name and designer merchandise.
TJX price about 20% to 60% below department and specialty store regular prices on comparable merchandise.
Separately, TheStreet Ratings team rates TJX COMPANIES INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate TJX COMPANIES INC (TJX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, growth in earnings per share, revenue growth, notable return on equity and good cash flow from operations. We feel its strengths outweigh the fact that the company shows low profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- TJX COMPANIES INC has improved earnings per share by 14.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, TJX COMPANIES INC increased its bottom line by earning $3.15 versus $2.95 in the prior year. This year, the market expects an improvement in earnings ($3.27 versus $3.15).
- Despite its growing revenue, the company underperformed as compared with the industry average of 12.1%. Since the same quarter one year prior, revenues slightly increased by 6.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Specialty Retail industry and the overall market, TJX COMPANIES INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has increased to $1,196.03 million or 24.98% when compared to the same quarter last year. In addition, TJX COMPANIES INC has also modestly surpassed the industry average cash flow growth rate of 19.66%.
- You can view the full analysis from the report here: TJX Ratings Report