This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Retail Stocks Jolly With Holiday Cheer

1. TJX

Consumers may not be shopping at the mall this holiday season, particularly for apparel, but they are shopping at off-price retailers like T.J. Maxx and home decor stores like HomeGoods.

TJX, the parent company to those two brands as well as Marshall's, is positioned well. It is Citigroup analyst Oliver Chen's top defensive stock pick for the holidays.

"At TJX, we believe stronger holiday marketing efforts, consistent store traffic and sales growth, and increasing penetration into younger demographics following a shifting trend to mix and match fashion offer significant upside to fourth quarter comp guidance of 2-3%," Chen wrote in an Oct. 24 research note.

Chen upped his 12-month price target by $5 to $68 on TJX based on the company's increased holiday marketing on social media and television along with the brand's "value message" gaining traction with both younger customers while staying relevant with its core base, he wrote.

Additionally the company's "superior merchant team and inventory management" that drives "newness, flexibility and margins" as well as the minimal inclusion of comp sales and e-commerce in the company's top-line guidance offers incremental upside, he said.

Shares of TJX are up 46% this year. The stock closed down 0.08% on Monday at $61.67.

Last month, TJX boosted third-quarter and full-year guidance fueled by strong sales and profit margins.

The retailer also raised comparable-store sales growth to approximately 4% in the quarter, up from the 2% to 3% growth it forecast in August. TJX reported comparable sales of 7% in the third quarter of 2012.

2 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AMZN $434.68 -0.88%
SALE $19.07 1.30%
AAPL $132.93 0.21%
FB $81.48 -0.52%
GOOG $555.16 -0.04%

Markets

DOW 18,094.22 +56.25 0.31%
S&P 500 2,112.43 +3.51 0.17%
NASDAQ 5,064.9490 +4.7030 0.09%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs