Off-Price Sector Of Retail Positioned 'Very Well' Heading Into 2016
- Shares of both TJX Companies Inc (NYSE: TJX) and Ross Stores, Inc. (NASDAQ: ROST) have gained about 5 percent since January 19.
- Nomura’s Robert Drbul stated that the off-price sector of America’s retailing / broadlines & department stores remains well positioned heading into 2016.
Despite the current challenging conditions in the retail environment, the off-price sector continues to be very well positioned heading into 2016, analyst Robert Drbul said. He believes that both TJX Companies and Ross Stores are poised for an outperformance in 2016.
“As traditional department stores struggle with the highly promotional environment and volatile trends, the off-price sector continues to win market share and retail loyalty with consumers,” Drbul wrote.
The back half of 2015 being lackluster has resulted in “tremendous” buying opportunities for the off-price sector, the analyst commented, while adding that both TJX Companies and Ross Stores have been and are likely to continue to capitalize on strategic buying opportunities.
“We believe these two stocks offer defensive characteristics, with steady leadership, strong balance sheets, and significant growth opportunities,” Drbul mentioned.
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