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Wal-Mart, Amazon, Target and Home Depot are part of Zacks Earnings Preview
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For Immediate Release
Chicago, IL – February 20, 2018 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Wal-Mart (WMT - Free Report) , Amazon (AMZN - Free Report) , Target (TGT - Free Report) and Home Depot (HD - Free Report) .
Wal-Mart kicks off the Q4 earnings season for the brick-and-mortar retail space, with the retail giant on track to release results Tuesday morning. The company has been in a league of its own lately, with many in the market viewing Wal-Mart as the most capable of all the traditional retailers to offer a competitive challenge to Amazon’s ever-growing dominance of the retail space.
This ‘promise’ has been showing up in recent quarterly results, with the stock making significant gains following the quarterly release on November 16th when it showed impressive comps and handily beat expectations. The stock is up +52.1% over the past year, handily outperforming the +16.2% gain for Target and the industry’s +39.9% gain. Year-to-date, Wal-Mart shares are up +6.1%, compared to the S&P 500 index’s +2.2% gain.
Wal-Mart shares lost ground in the recent market sell-off, but have already recouped almost half of its losses. This shows a high level of confidence in the company’s Q4 report on Tuesday. The other major retailers and department stores will be reporting in the following week, though Home Depot will also be reporting results on Tuesday.
Unlike Wal-Mart, Home Depot shares have been hit hard in the recent sell off and still remain under pressure. Home Depot shares are up +30.6% over the past year, but they are down -1.5% in the year-to-date period, likely reflecting fears of higher interest rates weighing on the broader housing sector.
Retail Sector Scorecard
As of Friday, February 16th, we now have Q4 results from 18 of the 39 retailers in the S&P 500 index. Total earnings for the 18 retailers that have reported already are up +13.1% from the same period last year on +14.6% higher revenues, with 72.2% beating EPS estimates and 77.8% beating revenue estimates.
Please note that we have a stand-alone Retail sector, unlike the official Standard & Poor’s placement of this space in their Consumer Discretionary sector. The Zacks Retail sector includes, besides the traditional department stores and other brick-and-mortar retailers, the online vendors like Amazon and Priceline and restaurant operators. Results from the online vendors and most of the restaurant operators are already behind us at this stage and form part of the scorecard described here. Wal-Mart and Home Depot will be the first in the traditional brick-and-mortar space coming out with results.
This is better performance than we have seen from this same group Retail sector stocks in other recent periods. But as mentioned earlier, all of these results are from the online vendors and restaurant operators, the traditional operators have yet to come out with Q4 results. We will see if these comparisons will still remain favorable after we see their results.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Wal-Mart, Amazon, Target and Home Depot are part of Zacks Earnings Preview
For Immediate Release
Chicago, IL – February 20, 2018 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Wal-Mart (WMT - Free Report) , Amazon (AMZN - Free Report) , Target (TGT - Free Report) and Home Depot (HD - Free Report) .
To see more earnings analysis, visit http://at.zacks.com/?id=3207.
What Will Retail Earnings Show?
Wal-Mart kicks off the Q4 earnings season for the brick-and-mortar retail space, with the retail giant on track to release results Tuesday morning. The company has been in a league of its own lately, with many in the market viewing Wal-Mart as the most capable of all the traditional retailers to offer a competitive challenge to Amazon’s ever-growing dominance of the retail space.
This ‘promise’ has been showing up in recent quarterly results, with the stock making significant gains following the quarterly release on November 16th when it showed impressive comps and handily beat expectations. The stock is up +52.1% over the past year, handily outperforming the +16.2% gain for Target and the industry’s +39.9% gain. Year-to-date, Wal-Mart shares are up +6.1%, compared to the S&P 500 index’s +2.2% gain.
Wal-Mart shares lost ground in the recent market sell-off, but have already recouped almost half of its losses. This shows a high level of confidence in the company’s Q4 report on Tuesday. The other major retailers and department stores will be reporting in the following week, though Home Depot will also be reporting results on Tuesday.
Unlike Wal-Mart, Home Depot shares have been hit hard in the recent sell off and still remain under pressure. Home Depot shares are up +30.6% over the past year, but they are down -1.5% in the year-to-date period, likely reflecting fears of higher interest rates weighing on the broader housing sector.
Retail Sector Scorecard
As of Friday, February 16th, we now have Q4 results from 18 of the 39 retailers in the S&P 500 index. Total earnings for the 18 retailers that have reported already are up +13.1% from the same period last year on +14.6% higher revenues, with 72.2% beating EPS estimates and 77.8% beating revenue estimates.
Please note that we have a stand-alone Retail sector, unlike the official Standard & Poor’s placement of this space in their Consumer Discretionary sector. The Zacks Retail sector includes, besides the traditional department stores and other brick-and-mortar retailers, the online vendors like Amazon and Priceline and restaurant operators. Results from the online vendors and most of the restaurant operators are already behind us at this stage and form part of the scorecard described here. Wal-Mart and Home Depot will be the first in the traditional brick-and-mortar space coming out with results.
This is better performance than we have seen from this same group Retail sector stocks in other recent periods. But as mentioned earlier, all of these results are from the online vendors and restaurant operators, the traditional operators have yet to come out with Q4 results. We will see if these comparisons will still remain favorable after we see their results.
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.