Readers of this space know that, given the uncertainties regarding U.S. economic growth, household formation, and job creation, the retail sector is to be avoided. Still, there are exceptions -- particularly when the fundamentals suggest it's a decent time to get-ahead-of-the-pack with a company -- and with the aforementioned in mind, Staples is worth a review.

In general, analysts don't forecast anything spectacular about Staples, Inc. (Nasdaq: SPLS) FY 2009 North American retail sales, which should decline 1-3%

Still, there are bright spots that provide cause for hope: strong results from the North American delivery division's Chicago, Denver and Miami regions point to untapped domestic metropolitan area opportunities.

Further, margins should widen as SPLS's ramping private-label business comprises a larger percentage of sales.

Finally, longer term, South America and China should provide investors with the more-robust sales gains they seek. The Reuters FY 2009/FY 2010 EPS consensus estimates for SPLS are $1.50 to $1.71

The First Call mean rating for SPLS is: Buy [13 firms]. Mean 2008 target: $27 [high: $31, low: $21].

The risks? A sustained U.S. economic recession would substantially hurt SPLS's results. Analysts are also keeping an eye on Staples' new store opening timetable.

Stock Analysis: Staples is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than 2 years should be rewarded from SPLS's shares. Sell/Stop Loss if you were to purchase shares in this company: $17.

Disclosure: Lazzaro has no positions in stocks. In addition to private real estate holdings, he owns corporate and municipal bonds, and cash certificates of deposit.