TJX Stock Gaps Lower on Lackluster Q4 Guidance

The retailer is brushing off a third-quarter earnings and revenue win

TJX Companies Inc (NYSE:TJX) announced better-than-expected results for the third quarter and raised its full-year forecast, but lackluster fiscal fourth-quarter guidance appears to be hurting shares. Disappointing results from sector peer Target (TGT) are weighing on retailers as well. 

At last glance, TJX is down 1.5% to trade at $117.75, on track for its third-straight loss as it extends a pullback from its Nov. 14, record closing high of $121.13. The security still sports a 27.4% year-to-date lead, and has support from all short- and long-term moving averages.

Analysts are yet to chime in, but lean bullish towards TJX. Of the 24 analysts in question, 21 sport a “strong buy” rating, while the 12-month consensus target price of $128.61 is a 7.6% premium to the stock’s current levels.

Short-term options traders have been much more bearish than usual, however. This is per TJX’s Schaeffer’s put/call open interest ratio (SOIR) of 1.10 that ranks higher than 85% of annual readings.

Drilling down to today’s options activity, 9,189 puts and 5,842 calls have crossed the tape so far, which is 14 times the volume typically seen at this point. The most popular contract by far is the January, 2025 115-strike put, where new positions are currently being opened.

 

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