Unusual Social Activity Around TJX Companies (TJX) Today

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified TJX Companies ( TJX) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified TJX Companies as such a stock due to the following factors:

  • TJX has more that 20x the normal benchmarked social activity for this time of the day compared to its average of 4.45 mentions/day.
  • TJX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $204.6 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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More details on TJX:

The TJX Companies, Inc. operates as an off-price apparel and home fashions retailer in the United States and internationally. It operates through four segments: Marmaxx, HomeGoods, TJX Canada, and TJX Europe. The stock currently has a dividend yield of 1.3%. TJX has a PE ratio of 21. Currently there are 12 analysts that rate TJX Companies a buy, no analysts rate it a sell, and 8 rate it a hold.

The average volume for TJX Companies has been 3.4 million shares per day over the past 30 days. TJX Companies has a market cap of $44.8 billion and is part of the services sector and retail industry. The stock has a beta of 0.93 and a short float of 0.9% with 1.83 days to cover. Shares are down 3.8% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates TJX Companies as a buy. 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 ratings report include:
  • 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%.

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