TJX

I track an investable universe of 50 high-quality dividend growth stocks to identify attractive entry points based on valuation and future return potential. Applied Materials, D.R. Horton, and Home Depot saw notable ranking improvements due to upgraded EPS growth estimates and/or favorable valuation shifts. 44 out of 50 stocks currently offer a forward return estimate of at least 10%, with 32 appearing potentially undervalued based on free cash flow mean reversion.

Wall Street is climbing without the consumer. Over three months, the S&P 500 has gained 4.3%, while the consumer staples ETF (XLP) has lost about 4%, and its discretionary counterpart (XLY) about 5%.

TJX (TJX) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.

The average of price targets set by Wall Street analysts indicates a potential upside of 28% in TJX (TJX). While the effectiveness of this highly sought-after metric is questionable, the positive trend in earnings estimate revisions might translate into an upside in the stock.

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?

T.J. Maxx closed two of its most recognizable stores earlier this year.

TJX and BURL lean on value, merchandising strength and store expansion as off-price shoppers seek recognizable brands at lower prices.

TJX is accelerating store expansion as strong new-location performance opens more opportunities across rural, urban and proven markets.

TJX earns a hold rating as strong free cash flow, improving margins, and solid growth opportunities are offset by a valuation that still looks somewhat expensive. My DCF estimates TJX's intrinsic value at $116.61 per share, placing the stock roughly 11% above my fair value estimate. Q2 sales rose 5%, adjusted EPS increased 11%, and adjusted gross and pretax margins improved year over year.

TJX Companies (TJX +0.03%) offers a compelling customer value proposition.