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Tickers in this Article: TJX, TGT, FDO, DG
Some are declaring this recession over, but many on Main Street are just barely getting by. So it will probably take a lengthy period of time before the masses feel comfortable enough to start spending again in pre-recession amounts. In the interim, individuals and families that are struggling will seek to save and stretch their thin budgets by shopping discount or low priced retail chains. With that in mind today we will discuss TJX Companies (NYSE:TJX) and other similar chains that have been seeing solid financial results during these trying times.

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TJX Worth A Window Shop
TJX Companies, which is famous for its TJ Maxx and Marshalls stores, is doing well in the face of this weak economy as evidenced by its latest announcement that its board declared a dividend of 15 cents. That's noteworthy because it's a 25% bump up. This is not something that TJX's board would do unless it was confident in the company's future and the future for the lower-priced space is general. Note that in the release the company defines itself by saying, "The TJX Companies, Inc. is the leading off-price retailer of apparel and home fashions in the U.S. and worldwide."

TJX Companies has also been doing well on the earnings front, which is evidenced by the earnings beats during recently released quarters. Data indicates its beat out expectations three quarters straight, which is an achievement.

Other Discounts To Check Out
Family Dollar (NYSE:FDO) is coming off a better-than-expected second quarter. Along with its release, the company also offered a better-than-expected outlook for its third quarter, which turned a few heads. Offering an outlook isn't something I think the company would do unless it were somewhat confident. That stock looks as if it could make a new 52-week high.

Meanwhile, Dollar General (NYSE:DG), the Tennessee-based discount chain is also coming off a better-than-expected fourth quarter. DG also offered a solid outlook for 2010. More specifically, $1.55 to $1.63 per share, which is likely to capture analyst's attention because the estimate out there was, according to news reports, $1.56.

Of course, yours truly remains a proponent of Target (NYSE:TGT). Despite the stock's nice rise since the fall time period I still believe it has upside potential. In my mind, the prospect for higher taxes and interest rates could cause consumers to frequent the discount chain. (Read Analyzing Retail Stocks to learn about the most important metrics to look at when analyzing retail stocks)

Bottom Line
Discount chains remain in good shape and the space will continue to do well financially in the next couple of quarters. The TJX news is promising and I think that stock has upside potential from here. My other favorite among the aforementioned companies is Target.

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