There are no safe havens in the stock market. Every stock carries risk. But some less than others. This column features stocks that have shown one or more of the following characteristics: less volatility, better earnings, larger market caps, safe and increasing dividends. In these times of turmoil, our goal is to show readers better opportunities for investing with fewer risks.

September 23, 2008 - TJX Companies (TJX-NYSE) operates as an off-price retailer of apparel and home fashions in the United States and internationally. It sells off-price family apparel and home fashions through T.J. MAXX and MARSHALLS, HOMEGOODS, and A.J.WRIGHT in the United States; WINNERS and HOMESENSE in Canada; and T.K. MAXX and HOMESENSE in Europe.

What's interesting about TJX is that it recently hit an all-time high of $40.64 (on October 26). Not bad for a company that's fighting a tough economic climate, where consumers are tightening their purse strings daily. But that's the very reason TJX prospers: it helps consumers save money. It's in the right spot at the right time.

Earnings are the best proof of that. They've improved every year since 1995 except in 2005 when they were down by a nickel. They started at 13 cents a share in '95, then 30 cents, followed by 46 cents, fast forward to 2004 when $1.34 was reported, then $1.29. Since then it's been higher and higher with 2007 at $1.92, then $2.01 last year. This year consensus among 18 analysts is for $2.59 a share. Next year, they see $2.88. No wonder the stock is doing so much better. The October quarter (fiscal year ends in January) will be announced on November 17. Look for 79 cents a share, well ahead of the 57 cents last year in the third quarter. For the final quarter, expect 70 cents, again much better than the 55 cents of last year's fourth. For the next 5 years, analysts estimate earnings to grow by 13% a year, on average.

In the upcoming announcement, sales should be higher by 7% on a comparable-sales basis, along with an improvement in gross margin and lower Selling, General and Administrative expenses, giving the bottom line lots of help. Part of the revenue improvement comes from the HomeGoods division. It recorded a 9% increase in the second quarter while profitability (as measured by profit margin) was up 5.9%. Add the A.J. Wright stores where sales grew by 5% on top of the 6% growth of last year, and there's reason to believe that the top line will only keep increasing and the bottom line improve even faster due to the potential of margin expansion. Management is looking to build more A.J. Wright stores, taking its current 145 to 500.

In fact, management is feeling very expansive, offering a target range of 4% - 5% annual square footage increases on a global basis with new stores at existing divisions as well as newer concepts such as The Cube and Runway. The company has locations in Germany, Poland, the U.K. and Ireland as well as North America.

More numbers: Trailing p/e is 17.3 while the Forward p/e is 13.31. Price to sales is .84 while Price to book is 5.73. Book Value is $6.68. Operating margin for the last 12 months was 8.31% while the Profit margin was 4.97. Return on Equity was an incredible 39.45%. Revenues for the last 12 months were $19.2 billion. There's $1.56 billion in cash, which is $3.68 a share. Debt is about 30% of capital. Current ratio is 1.61. There are 423.85 million shares outstanding with a Float of 421.48 million. Institutions own 95% of the stock. Value Line ranks the company's Financial strength at A+.

Conservative investors may find this stock a good one to investigate further. While some valuations are a bit high (Price to Book being one), the Return on Equity is outstanding, as is the Financial Strength. Management is determined to keep expanding, both the top and bottom lines and proven it can deliver. That's hard to find in today's stock market.

Company Web site: www.tjx.com

- Ted Allrich