Cheap is the new black for retail

By Paul R. La Monica, CNNMoney
2008-11-28 11:04:28

NEW YORK (CNNMoney.com) -- Americans may be descending on the malls today to hunt for bargains. But this is still expected to be a blue Christmas for many retailers and a gloomy end to what's turning out to be a dismal 2008.

Nonetheless, some consumer stocks are actually thriving this year. Not surprisingly, almost all of the retailers that are in the black through Black Friday are benefiting from the weak economy because they tend to focus on thrifty shoppers. (And who isn't trying to be more frugal these days?)

Shares of Wal-Mart Stores (WMT, Fortune 500) have gained nearly 20% so far this year. That makes it not just the best-performing stock in the Dow in 2008 -- it's the only one of the Dow 30 that's up this year.

The discount retailer is expected to post an 8% gain in sales and 10% increase in profits -- incredibly impressive in this economic environment.

Big Lots (BIG, Fortune 500), a closeout retailer of bargain-priced merchandise, is also doing well as consumers pull back. The stock is up 10% this year and earnings per share are expected to increase 35%.

	Investment Basic Investment Overview Investment Approache Fundamentals Data Investment Stories www.fxj108.com	Cheap is the new black for retail By Paul R. La Monica, CNNMoney 2008-11-28 11:04:28 NEW YORK (CNNMoney.com) -- Americans may be descending on the malls today to hunt for bargains. But this is still expected to be a blue Christmas for many retailers and a gloomy end to what's turning out to be a dismal 2008. Nonetheless, some consumer stocks are actually thriving this year. Not surprisingly, almost all of the retailers that are in the black through Black Friday are benefiting from the weak economy because they tend to focus on thrifty shoppers. (And who isn't trying to be more frugal these days?) Shares of Wal-Mart Stores (WMT, Fortune 500) have gained nearly 20% so far this year. That makes it not just the best-performing stock in the Dow in 2008 -- it's the only one of the Dow 30 that's up this year. The discount retailer is expected to post an 8% gain in sales and 10% increase in profits -- incredibly impressive in this economic environment. Big Lots (BIG, Fortune 500), a closeout retailer of bargain-priced merchandise, is also doing well as consumers pull back. The stock is up 10% this year and earnings per share are expected to increase 35%.