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Amazon.com, Inc. (AMZN) - free report >>
Macy's, Inc. (M) - free report >>
Target Corporation (TGT) - free report >>
The TJX Companies, Inc. (TJX) - free report >>
Walmart Inc. (WMT) - free report >>
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Buy These Top Retail Stocks Before Earnings for the Holidays and Beyond?
Today’s episode of Full Court Finance at Zacks breaks down the market’s strong start to the fourth quarter that includes an impressive streak for the S&P 500. We then transition over to two retail titans, Walmart (WMT - Free Report) and Target (TGT - Free Report) , ahead of their upcoming Q3 financial releases to see if either stock might be worth buying as we enter the heart of the holiday shopping season.
The S&P 500 closed at a record on Monday for the eighth consecutive session. This matched a 1997 streak, but the benchmark index didn’t extend its run. In fact, all three major U.S. indexes finally slipped on Tuesday after they had continued to break new ground to start November as part of a resurgence that started when stocks entered oversold technical territory in early October.
Wall Street bulls remain positive in the face of rising prices and supply chain bottlenecks. One clear reason for the optimism is the fact that these economic headwinds haven’t appeared in the S&P 500 margins outlook for 2022.
Investors also seemed unfazed about the Fed’s decision to start scaling back its bond-buying. The central bank hopes to end its run of stimulus-focused bond purchases by June, while leaving interest rates unchanged during this stretch.
On top of that, the consumer-driven U.S. economy showed strength in October after slow Q3 GDP growth. Given this backdrop, it might be time to consider buying strong retail stocks ahead of a busy stretch of earnings next week that includes Home Depot (HD - Free Report) , Lowe’s (LOW - Free Report) , TJX (TJX - Free Report) , Macy’s (M - Free Report) , and many others.
Walmart is projected to grow both its top and bottom lines after a banner year in 2020. The historic firm is also built to challenge Amazon (AMZN - Free Report) for years to come as it builds out its e-commerce offerings and beyond. Meanwhile, Target has been a star of retail and its commitment to growing its strong in-house brands will help it thrive going forward.