TJX ( TJX) is another name that's had a strong retail rally in 2013. Shares of the $35 billion off-price retailer have climbed close to 17% so far in 2013. TJX owns an attractive collection of discount retail names that includes T.J. Maxx, Marshall's and HomeGoods - three store chains that benefit when consumers want to seek out a bargain.
TJX is the standard bearer in the off-price retail segment, the firm's stores stock major brand name clothing, accessories and housewares at prices that are fairly dramatic discounts to their retail costs. Better, full-price retailers and manufacturers need TJX because the firm is willing to buy massive swaths of excess inventory.The firm's suppliers can hypothetically bypass the middle-man by opting to sell last season's fashions at their own outlet stores, for most it's not a feasible model. Retail is extremely capital intense, and TJX provides a top-line boost to its suppliers with zero risk. Those factors should keep quality inventory flowing to TJX's stores for the foreseeable future. We're betting on shares of this Rocket Stock this week ahead of May 21's earnings call. To see all of this week's Rocket Stocks in action, check out the Rocket Stocks portfolio at Stockpickr. -- Written by Jonas Elmerraji in Baltimore.
Twitter and become a fan on Facebook.