The USD 40.4 support, currently tested, should allow The TJX Companies to rally again.
In the recent months, the earnings estimates for the next year are regularly revised upward by analysts. With an EPS estimated at USD 2.49 for this year and USD 2.79 for the next year, The TJX Companies is currently paid 16.54 and 14.76 times the results.
Technically, the security fell sharply for several weeks. This fall has lead the stock towards the USD 40.4 support area which could become useful as a stepping stone for a technical rebound. The target of this bullish trend is the USD 42.5 resistance. Even though moving averages are still in a bearish trend, the oversold situation could encourage a renewed interest in The TJX Companies.
Thanks to the technical pattern, active investors can take a long position above USD 40.4. The downside potential is limited and the timing seems perfect to benefit from a technical rebound.
The goals will be fixed at USD 42.5 in a first time and then at USD 44.3.
However, a bearish trend would regain the upper hand if the security crosses USD 40.4.
The TJX Companies, Inc. is No. 1 in America of discount retail distribution of clothing and household items. Net sales break down by family of products as follows:
- apparel and accessories (46%);
- home goods (39%): home furnishings, lamps, rugs decorative accessories, etc.;
- jewelery and accessories (15%).
At 30/01/2021, the group had a network of 4,572 stores located in the United States (3,305, of which 1,271 T.J. Maxx, 1,131 Marshalls, 821 HomeGoods, 48 Sierra and 34 Homesense), Canada (525, of which 280 Winners, 143 HomeSense and 102 Marshalls), Europe and Australia (742, of which 602 T.K. Maxx, 78 HomeSense and 62 Trade Secret).
Net sales are distributed geographically as follows: the United States (79.2%), Europe and Australia (12%) and Canada (8.8%).
THE TJX COMPANIES 
