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Retail Boost: 3 Discount Stocks to Watch
18 Aug
Summary
- Evercore ISI identifies three discount retailers for potential outperformance.
- Ross Stores has initiatives for enhanced comparable sales in the second half.
- Burlington and TJX also named as preferred picks with positive outlooks.
Evercore ISI has pinpointed three discount retailers within the retail, apparel, and luxury brands sector as top picks, anticipating stronger performance in the latter half of the year. These selections are based on potential comparable sales trends, favorable comparison periods, and operational enhancements, offering support amid an uncertain economic climate.
Ross Stores Inc. is Evercore ISI's primary selection, holding an Outperform rating and a $276 price target. The firm believes early-stage initiatives like increased marketing and improved in-store experiences could accelerate comparable sales trends. Burlington Stores Inc. is a Top 5 selection with an Outperform rating and a $400 price target. An accommodating third-quarter comparison base and operational improvements are expected to bolster its performance, with potential for stronger results if merchandising gaps are closed.
The TJX Companies Inc. is the third highlighted stock, maintaining an Outperform recommendation and a $175 price target. Evercore ISI's focus on these companies suggests a strategic emphasis on discount retail's resilience and growth potential.
