This retail stock is set to jump 18%: Trader

This retail stock is set for record highs: Trader

One retailer near all-time highs could be in for an even bigger run.

"When I look at this setup, I think it's a very compelling buy," said "Fast Money" trader and Cowen & Co. Managing Director David Seaburg.

TJX Companies, the parent of T.J.Maxx and Marshalls, was trading at all-time highs before reporting disappointing guidance on Tuesday that took down the stock that same day. But the company did beat earnings expectations for the current quarter and actually increased its store count by 14, while many of its competitors have been cutting stores.

"T.J.Maxx is a stock that a lot of long-only investors and hedge funds really piled into, because it was a great defensive trade in a subsector that really had a challenging several months, if not several quarters," explained Seaburg.

The retail environment has been rough for investors this year, but TJX Companies has managed to thrive, even as shoppers have started to skip traditional department stores and are moving more of their shopping online. Shares of the off-price retailer are up about 11 percent, widely outperforming the S&P Retail ETF, which is up about 6 percent so far this year.

"It's a great place to step in," said Seaburg. The stock is trading around $78 a share and he expects it could jump another 18 percent from these levels.