TJX Companies (NYSE:TJX) turned around an early premarket loss to show a 2.57% gain in mid-day trading.
Bank of America thinks the TJX quarter is the reset that investors were looking for and pointed to the better margins displayed even in the face of weaker sales.
Other positive pullouts from the report identified by analyst Lorraine Hutchinson were that cost controls helped to offset high freight costs, TJX management described the buying environment as flush with branded and high quality product, and profitability is improving with the international business.
BofA reiterated a Buy rating on TJX and called it well positioned to benefit from trade down and inventory availability. The firm’s price objective of $75 reflects a P/E of 23X off the FY24 estimates.
Read more about the TJX earnings report.