Of 25 analysts covering TJX, 20 have a Buy or Strong Buy rating and the other five rate the shares at Hold. At a price of around $86.00 a share, the upside potential based on a median price target of $90.00 is 4.7%. At the high price target of $110.00, the upside potential is 27.9%.
Second-quarter revenue is forecast to come in at $12.42 billion, up 5.4% sequentially and by 4.9% year over year. Adjusted EPS are pegged at $0.76, flat sequentially and up 10.1% year over year. For the 2024 fiscal year ending in January, analysts expect EPS of $3.58, up 15.2%, on sales of $53.16 billion, up 6.5%.
TJX’s stock trades at 24.0 times expected 2024 EPS, 21.6 times estimated 2025 earnings of $3.98 and 19.4 times estimated 2026 earnings of $4.44 per share. The 52-week range is $59.68 to $87.81. TJX pays an annual dividend of $1.33 (yield of 1.55%). Total shareholder return for the past 12 months was 39.49%.
Zim Shipping
It almost certainly had to happen sooner or later. Zim Integrated Shipping Inc. (NYSE: ZIM) reported a miss on both the top and bottom lines when it released first-quarter results in May. Shipping volume declined by 10.5% year over year, and the average rate for a 20-foot-equivalent unit (TEU) fell by 62.6%. The company’s net loss was $58 million, and Zim did not pay a June dividend.
The company distributes 30% to 50% of its annual net income to shareholders in quarterly payments based on a rate of 30% of net income in each of the year’s first three quarters. No first-quarter net income, no dividend.
The situation may not improve any time soon. Container shipping rates have fallen by 40% from a peak set in January 2022, and a slowing global economy is unlikely to help a turnaround. For the record, Zim’s trailing 12-month dividend yield was 98.88%, and its payout ratio was above 115%. Zim reports results before markets open on Wednesday morning.
Of seven brokerages covering the company, none has a Buy rating, four have rate it at Hold and the others have a Sell or Strong Sell rating. At a share price of around $14.00, the stock trades above its median price target of $13.00. At the high target of $17.70, the upside potential is 26.4%.
For the company’s second quarter of fiscal 2023, the consensus revenue estimate is $1.35 billion, down 1.9% sequentially and 60.6% lower year over year. Analysts expect an adjusted loss per share of $0.92, compared to a loss per share of $0.50 in the previous quarter and EPS of $11.07 in the year-ago quarter. For the full fiscal year, current estimates call for a net loss of $3.15, compared to 2022 EPS of $38.41. Full-year revenue is forecast at $5.49 billion, down by 56.3%.
Zim stock trades at an enterprise value to sales multiple of 0.6 for each of the next three years based on annual revenue of $5.49 billion, $5.51 billion and $6.02 billion in 2023, 2024 and 2025, respectively. The stock’s 52-week range is $11.78 to $52.42. The company has suspended its dividend. Total shareholder return for the past year was negative 53.72%.
Originally published at 24/7 Wall St.
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