Discount And Off-Price Retail Sector Update (TJX, ROST, DLTR, BIG, FRED)

Analyst Patrick McKeever at MKM Partners has released an update on the Discount and Off-Price retail sector. Five of the companies in MKM's coverage for the sector will report sales for January and the fourth quarter this week, with remaining three companies in the coverage reporting sales just for the fourth quarter. MKM expects the best results to come from big off-price retailers, TJX Companies Inc. TJX and Ross Stores Inc. ROST. MKM has raised estimates for same-store sales at Kohl's Corporation KSS from flat to a range of 2%-3%. MKM has maintained its EPS estimate $1.33, which is above the consensus and guidance. MKM expects Dollar Tree Inc. DLTR to report a strong quarter and has raised EPS estimate for the fourth quarter from $1.39 to $1.40. For the eight companies in its coverage MKM has a Buy rating for Big Lots Inc. BIG, Kohl's Corporation, Ross stores Inc. and TJX Companies Inc and a Neutral rating for Cato Corporation CATO, Dollar Tree Inc., Fred's Inc. FRED and Citi Trends Inc. CTRN.