Analysts at a major Wall Street research firm see multi-year growth and share gains ahead for off-price retailers.
Under this scenario, lower-income consumers will choose to spend their money at off-price retailers.
The analysts like Ross Stores (ROST) best, and called Burlington Stores (BURL) high-risk, high-reward, with a multi-year turnaround story.
Bank of America, in a note this week, emphasized that the off-price retailers, including TJX, will be eager to take over the additional closed Bed Bath & Beyond locations.
Bottom line We're encouraged to hear from Bernstein that lower-income consumers might be ready to spend more at off-price retailers, leading the analysts to say they would view "Q1 off-price weakness as an entry point" into the stocks.