The TJX Companies, Inc. (NYSE:TJX) saw significant share price movement during recent months on the NYSE, rising to highs of US$120 and falling to the lows of US$108. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether TJX Companies' current trading price of US$116 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at TJX Companies's outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

What Is TJX Companies Worth?

According to our valuation model, TJX Companies seems to be fairly priced at around 1.6% below our intrinsic value, which means if you buy TJX Companies today, you'd be paying a reasonable price for it. And if you believe that the stock is really worth $118.30, then there isn't much room for the share price grow beyond what it's currently trading. In addition to this, TJX Companies has a low beta, which suggests its share price is less volatile than the wider market.

Can we expect growth from TJX Companies?

Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. TJX Companies' earnings over the next few years are expected to increase by 26%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? It seems like the market has already priced in TJX's positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven't considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you've been keeping tabs on TJX, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it's worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you want to dive deeper into TJX Companies, you'd also look into what risks it is currently facing. For example - TJX Companies has 1 warning sign we think you should be aware of.

If you are no longer interested in TJX Companies, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.