Don't Expect A Big Q2 Beat For TJX Companies, Atlantic Equities Says In Downgrade


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


TJX Companies Inc (NYSE:TJX) shares are up 24 percent year to-date, but now appear fairly valued, according to Atlantic Equities. 

The Analyst 

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Analyst Daniela Nedialkova downgraded TJX from Overweight to Neutral with a $90 price target. 

The Thesis

TJX has been on a solid trajectory, but momentum is priced into the stock, Nedialkova said in the Tuesday downgrade note. 

The discount apparel retailer has decent sales momentum and has capitalized on fashion opportunities and consumer strength, but  further outperformance looks difficult, the analyst said. 

“We believe the stock is pricing in persisting momentum," Nedialkova said. "While this should prove to be the case, we also believe that in order to see significant further stock upside, TJX would need to deliver an even more strongly outperforming Q2." 


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TJX faces a tougher Q2 comparison this year, the analyst said, adding that she does not forecast a high likelihood of  a meaningful beat.

TJX Companies is scheduled to report Q2 earnings Aug. 21. 

Price Action

TJX shares were trading down 0.33 percent at $94.91 at the time of publication Tuesday afternoon.

Related Links:

Wedbush Sees Strong Trends Backing Discount Retail

Wells Fargo Calls A Peak In Discount Retail, Downgrades TJ Maxx's Parent Co.

Photo by Anthony92931/Wikimedia. 


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Posted In: Analyst ColorDowngradesPrice TargetPreviewsAnalyst RatingsTrading IdeasAtlantic EquitiesDaniela Nedialkovaretail