4 Reasons Why TJX 'Stands Out From The Pack'

According to Roxanne Meyer of MKM Partners, TJX Companies Inc TJX is a "stand out" within the retailing group and the stock will re-emerge as a "core holding" after the company's first quarter results are fully understood by the market.

Meyer offered four reasons to support the bullish stance.

Traffic Gains

TJX benefited from traffic gains across its various divisions at a time when mall traffic is suffering a double-digit decline. The company is also gaining new customers and increased visits from already existing ones.

Weather

Weather benefited TJX's stores this year as opposed to other retailers that blamed poor results on weather related issues.

Broad-Based Strength

TJX saw strength from its "sharp" pricing, "unique" items and an overall assortment of products that is "as branded as it's ever been."

Favorable Outlook

It's "clear" that the second quarter has "started on a strong note" and the company is "well positioned" to further benefit given "opportunistic packaway buys."

Finally, the analyst suggested that further investments made by management to improve the in-store experience, effective advertising, higher wages, and an increased focus on the loyalty program will "support conversion."

Shares remain Buy rated with an unchanged $83 price target.