"Don't Buy Retailer Stocks Unless They Sell Cheap Stuff And Have a Store Within Walking Distance"

The prevailing Wall Street wisdom these days is that premium retailers will get slammed by economic weakness and that one should therefore buy discounters. Also in vogue: the theory that soaring gas prices will whack retailers who force people to drive.

Goldman Sachs downgraded the Department Store sector from Attractive to NEUTRAL, citing higher gas prices. Goldman also made 5 specific calls in the retail sector, favouring discount retailers like Wal-Mart (WMT) and TJX Companies (TJX).

J.C. Penney (JCP) downgraded from Buy to NEUTRAL.

Nordstrom (JWN) downgraded from Buy to NEUTRAL.

Kohl’s (KSS) removed from Conviction Buy List based on recent run-up of shares, but stil a BUY.

Wal-Mart (WMT) added to Conviction Buy List.

TJX Companies (TJX) upgraded from Neutral to BUY.


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