The TJX Companies (TJX) and Ross Stores, Inc. (ROST) are two discount retailers that appealed to investors through 2008 and continue to hold positive long-term expectations as both companies look to grow domestically and internationally, says Randell A. Cain Jr., Portfolio Manager at Herndon Capital Management, LLC.
“These are both discount branded retailers that are gradually making their way across the country, Ross coming more so from the West Coast moving toward the east, and TJX being a company that started more so on East Coast and is moving west, as well as to the U.K. and Canada with other branches and franchises. Both offer something that I think was particularly appealing in 2008, when we had the financial selloff in the markets,” Cain said.
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TJX and ROST continue to appeal to both cost-conscious customers and those looking for fashionable yet cost-effective purchases, Cain says. He expects both stocks to continue to perform well in the long term.
“With both TJX and Ross Stores, you’re able to buy quality goods — again, branded goods — at much better prices than what you’re going to get typically at the retailers that may sell the goods themselves or potentially at mall-based stores. And so we think that, long term, these companies have a great deal of appeal to the cost-conscious consumer, but also just to that consumer who wants to go perhaps on a retail treasure hunt and see what they can pick up that is going to still be fashion conscious, but not necessarily a budget-busting purchase…we are still very comfortable owning them for the long haul,” Cain said.
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