There's a Lot to Like About TJX Companies

Since the terrorist attacks, a slew of retailers have issued earnings warnings as many economists have revised their growth projections downward for the coming quarters.

One company that has not been forced to warn is off-price retailer TJX Companies (TJX Quote), confirming what is essentially conventional wisdom: Discount-oriented retailers do better than others during an economic slowdown. After all, the company was able to increase same-store sales -- a key retailing metric measuring the activity in shops open at least a year -- by 4% in August, higher than analysts expected. The consumer economy, remember, was putting on the brakes long before Sept. 11.

Genentech Adam Feuerstein and Lissa Morgenthaler Boeing Gary B. Smith and Glenn Curtis Oil Stocks Chris Edmonds and Henry Scholder Disney George Mannes and Chris Edmonds Brokerage Sector Arne Alsin and Peter Eavis

Meanwhile, TJX's share price has maintained its value since trading resumed after the attacks, which cannot be said for many in its sector.

While investors would be wise to proceed with caution in picking any retailer in this environment, TJX, which operates the TJ Maxx and Marshall's chains, deserves close attention. In addition to the obvious -- that its cheap goods will be attractive to consumers watching their wallets -- there are two other reasons investors should keep the company on their radar screen. ...