I currently own ATZ in my registered account and am up marginally.
If you do like the segment forward looking do you like ATZ or TJX better?
If you don't like this segment vs other opportunities what would you put the ATZ money into?
With thanks
Sheldon
As we have seen, the sector remains highly vulnerable to tariffs, if they were to stick. So far, of course, they have not been very sticky. Frankly, it is a tough question. Both companies have exposure to Asia. But TJX buys most products from other retailers--at a discount-- after they have bought too much. This gives it a bit of a cushion and a lower price point to consumers. Thus, TJX stock hit a new high yesterday while ATZ is down 21% this year. ATZ does not typically engage in discounting in order to protect its brand. In the current scenario, TJX should be able to hold up better. It does though trade at a higher valuation because of this. ATZ, on the other hand, has greater 'bounce' potential if the tariff issue is resolved somehow (at lower rates). We think the current price of ATZ reflects the situation fairly well. It was going strong on all cylinders before tariffs became an issue. We would be OK keeping it, but TJX may be less risky (and also much bigger) in the next six to nine months.