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Off-Price Retailers That Rewarded Investors the Most in 2016

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Total returns for off-price retailers

Major off-price retailers TJX Companies (TJX), Ross Stores (ROST), and Burlington Stores (BURL) performed well in 2016. They continued to attract consumers with attractive bargain deals. As of December 28, 2016, these three retailers had total returns of 7.6%, 24.6%, and 98.9% YTD (year-to-date). They outperformed the S&P 500 Index, which had a total return of 12.5% YTD.

Total return or total shareholder return includes stock price changes as well as dividend and other income received during a certain period. As of December 28, 2016, the dividend yields of TJX Companies and Ross Stores were 1.4% and 0.81%, respectively. Burlington Stores currently doesn’t pay dividends.

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Stock price movement

As of December 28, 2016, the stock prices of TJX Companies, Ross Stores, and Burlington Stores have risen 6.2%, 23.6%, and 98.9%, respectively. Together, they make up 4.1% of the SPDR S&P Retail ETF (XRT). The S&P 500 Index has risen 10.1% since the start of 2016.

TJX Companies stock fell ~1.0% on November 15, 2016, even though the company beat analysts’ sales and earnings expectations for the third quarter. Ross Stores stock rose 3.8% on November 18, 2016, in reaction to the company’s fiscal 3Q16 results that were released the day before. Burlington Stores stock rose 16.0% on November 22, 2016, in reaction to its impressive fiscal 3Q16 results.

Series overview

In this series on off-price retailers, we’ll take a look at their impressive sales performances, expansion plans, and valuations. We’ll finish up by looking at analyst recommendations.

Let’s start with these companies’ sales in 2016.

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