And those that have any success at all, like Urban Outfitters (URBN), Ross Stores (ROST) and TJX (TJX) -- as opposed to the dollar stores -- are getting a higher multiple on their somewhat consistent earnings.

Rost Stores (ROST) was upgraded from Neutral to Buy at Piper Jaffray. $40 price target. Company likely to gain department store customers and is buying back stock.

Ross Stores (ROST) was upgraded from Neutral to Overweight, JP Morgan said. Recent business momentum could continue and drive earnings upside. Company also running on lean inventories, and could use higher free cash flow to buy back more stock.

Perhaps one of the most overlooked retailers out there. Wow, what a play. I hate shopping at Ross Stores, but every single time I go into a Ross Store, it's packed. There's lines down the aisles. It is one of the worst looking retail environments I have ever seen, which is what keeps the cost low.

How many Wall Street analysts shop Ross? How many have ever been in a Ross Store? I bet fewer than I have fingers and toes. And therein lies the valuation misconception.

Ross caters to the masses. And the masses shop at Ross because they deliver department store clothing at clearance prices. What a concept. The tighter money gets, the better Ross does. It's a reverse play on the economy, but even better, as the middle class gets squeezed, they shop Ross to save a buck.

It's peers are pretty bad in comparison, spare Marshall's. Ross creates an environment of bargain hunting at rock bottom pricing. It's like a flea market for soft goods all under one roof. You may not shop there, but remember, most of the country does. I will no longer overlook this hidden gem.

Anticipating acquisition

Upgraded by Matrix Research from Hold to Buy

Takeover?

potential take overs

I disagree.