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Retailer Wins as Consumer Hits the Brakes: In this week's Random Acts of Fashion, Kristin Bentz, The Talented Blonde, points out a consumer retail stock that is winning in the 'new economy.'

Click here to watch the video.

Q: What kinds of retailers are best positioned to weather this storm?

Balter: The smaller the ticket, the lower the cost of the item, and the more of a necessity it is, the more likely you are going to buy it. So in my coverage area, it is [do-it-yourself auto companies] such as Advance Auto Parts (AAP), AutoZone (AZO) or O'Reilly Automotive (ORLY) because their products are required. Right behind them is PetSmart (PETM), because you are probably going to continue to feed your pet. But in terms of selling necessities, all of those trail Wal-Mart, Family Dollar Stores (FDO) and Costco Wholesale (COST).

These Auto Stocks Aren't Slowing Down
Detroit's big three automakers may be suffering, but Eric Ende, portfolio manager for the FPA Perennial Fund, says there are other ways to make money in the auto sector.

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Buy - Price 29.67 on April 1
by Kevin Dann & Partners

O'Reilly [will] acquire CSK Auto in a cash and stock deal worth about $1 billion ...creat[ing] the third-largest U.S. auto-parts retailer...the deal would also put the newly combined firm in striking distance of passing Advance Auto Parts...O'Reilly anticipates $100 million in savings beginning in 2010....The merger may be somewhat accretive to FY2009 earnings. Target: 44, from 39. Market cap: $3.4 billion.

A minor "Walmart" for growth

Work

Goldman Sachs said it is upgrading O'Reilly Automotive (ORLY) to Buy from Neutral based on strong growth profile and ability to drive accelerating earnings growth over several quarters. See solid near-term visibility. Price target raised to $40 from $38.

fhrew dart

Not sure if it has hit its ceiling yet.