NEW YORK (TheStreet) -- With worse-than-expected results coming in from the likes of Macy's (M) and Kohl's (KSS), investors have begun to distance themselves from the retail sector, sending the SPDR S&P Retail ETF (XRT) down 2% over the past month.
That investors have grown wary about retail stocks is understandable, given last week's report showing that U.S. retail sales flat-lined in April, against estimates of 0.2% growth. It means consumers aren't spending as much as the market had hoped.
There's a chance that this trend may continue, but even if it does, not every retailer will underperform. A name to bet on is TJX (TJX), which is due to report first-quarter fiscal 2016 earnings results Tuesday before the opening bell.
TJX, primarily known for its TJ Maxx and Marshall's discount chains, was trading early Monday at $66.58, up about 1%, but it's down roughly 3% on the year to date, lagging broader averages. TJX has also underperformed the 2% year-to-date gains in the SPDR S&P Retail ETF. And there's no way that makes sense.
The market seems to have already priced a poor report into TJX's stock before management has said a word about the just-ended quarter and issued their outlook for the rest of the year. After the poor April retail sales numbers, the consensus appears to be, "let's wait and see where retails sales end up for May."