As kicks into full swing, one analyst detailed four retail stocks that are the early morning winners with the most traffic so far.
In an interview with CNBC's "Squawk on the Street," UBS analyst Roxanne Meter said she is seeing cleaner balance sheets and better controlled inventories at retailers compared to last year.
"I think what you see going on is you've got a reversal of sourcing cost pressure so now retailers will have more power to promote and still be able to maintain margins," Meyer said.
Last year, retailers entered the holiday season with too much inventory so they had to discount extensively. But because of the reversal of sourcing cost pressure, Meyer expects companies to mimic 2011's promotions or even increase them while also maintaining healthy bottom lines.
So far she is "pretty encouraged about the start" to the crucial shopping holiday and estimated that the average discount is about 40 percent, roughly flat compared last year's markdowns.
—By CNBC.com's Katie Little; Follow Her on Twitter @katie_little
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Roxanne Meyer does not own shares of the companies mentioned in this article.