We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
This is a big week for retail earnings reports as some of the top names in the industry will be showing their cards.
Lots of questions are swirling around Walmart, Home Depot, Target, Macy’s and Ross Stores about consumer demand, inflationary pressures, labor issues and supply chain problems.
Which companies are handling all the challenges the best?
Can the high-fliers like Target and Macy’s keep their momentum?
Walmart has beat on earnings 5 out of the last 6 quarters as it has been a pandemic winner thanks to it’s grocery and staples business, as well as it’s delivery capabilities.
It’s now shifting gears into being a pandemic recovery winner as well.
Walmart shares are up 25% year-to-date, just beating the S&P 500 which is up 24% over the same time period.
Shares are hanging out near 5-year highs.
But Walmart isn’t cheap. It trades with a forward P/E of 23.4 and has a PEG ratio of 4.3.
Home Depot has only missed one time in the last 5 years and has put together an earnings surprise winning streak of 5 quarters in a row. That’s impressive during a pandemic.
With nesting and home remodeling still popular, Home Depot has been a pandemic winner and looks to be a reopening winner as well.
Shares of Home Depot are up 40.3% year-to-date and now trade with a forward P/E of 25.5.
Target has beat on earnings 11 quarters in a row, with its last miss pre-pandemic in 2019. That’s an amazing feat given Target’s prominent role as an essential retailer during the lockdowns.
Shares are up 47% year-to-date as the Street believes Target will be a pandemic reopening winner as well.
Shares aren’t expensive, with a forward P/E of 19.9, compared to Walmart’s valuation, of 23.4.
But how much more does Target have left in the tank this year after its amazing rally?
Macy’s has been left for dead by the Street several times over the last 10 years. Department stores were supposed to be “over” by now.
But Macy’s has managed to beat 8 quarters in a row, including throughout the pandemic, as it was forced to upgrade its online game over the last 18 months.
As a result, Macy’s earnings are expected to jump 273% this year to $3.84 from a loss of $2.21 during last year’s pandemic-hit year.
Macy’s is one of the cheapest retail stocks out there, with a forward P/E of just 7.9.
Shares have soared 173% year-to-date, but with its Black Friday sales already rolling out, will this rally continue into the end of the year?
5 Must-See Retail Earnings Charts
This is a big week for retail earnings reports as some of the top names in the industry will be showing their cards.
Lots of questions are swirling around Walmart, Home Depot, Target, Macy’s and Ross Stores about consumer demand, inflationary pressures, labor issues and supply chain problems.
Which companies are handling all the challenges the best?
Can the high-fliers like Target and Macy’s keep their momentum?
5 Must-See Retail Earnings Charts
1. Walmart (WMT - Free Report)
Walmart has beat on earnings 5 out of the last 6 quarters as it has been a pandemic winner thanks to it’s grocery and staples business, as well as it’s delivery capabilities.
It’s now shifting gears into being a pandemic recovery winner as well.
Walmart shares are up 25% year-to-date, just beating the S&P 500 which is up 24% over the same time period.
Shares are hanging out near 5-year highs.
But Walmart isn’t cheap. It trades with a forward P/E of 23.4 and has a PEG ratio of 4.3.
Are Walmart shares too hot to handle?
2. Home Depot (HD - Free Report)
Home Depot has only missed one time in the last 5 years and has put together an earnings surprise winning streak of 5 quarters in a row. That’s impressive during a pandemic.
With nesting and home remodeling still popular, Home Depot has been a pandemic winner and looks to be a reopening winner as well.
Shares of Home Depot are up 40.3% year-to-date and now trade with a forward P/E of 25.5.
Is it too late to take a chance on Home Depot?
3. Target (TGT - Free Report)
Target has beat on earnings 11 quarters in a row, with its last miss pre-pandemic in 2019. That’s an amazing feat given Target’s prominent role as an essential retailer during the lockdowns.
Shares are up 47% year-to-date as the Street believes Target will be a pandemic reopening winner as well.
Shares aren’t expensive, with a forward P/E of 19.9, compared to Walmart’s valuation, of 23.4.
But how much more does Target have left in the tank this year after its amazing rally?
4. Macy’s (M - Free Report)
Macy’s has been left for dead by the Street several times over the last 10 years. Department stores were supposed to be “over” by now.
But Macy’s has managed to beat 8 quarters in a row, including throughout the pandemic, as it was forced to upgrade its online game over the last 18 months.
As a result, Macy’s earnings are expected to jump 273% this year to $3.84 from a loss of $2.21 during last year’s pandemic-hit year.
Macy’s is one of the cheapest retail stocks out there, with a forward P/E of just 7.9.
Shares have soared 173% year-to-date, but with its Black Friday sales already rolling out, will this rally continue into the end of the year?
5. Ross Stores (ROST - Free Report)
Ross Stores has beat on earnings 4 out of the last 5 quarters, including two big beats in the most recent quarters.
But the Street hasn’t been buying the reopening story on Ross Stores just yet.
Shares are actually down 6% year-to-date, even though they remain elevated near 5-year highs.
Is valuation the issue? Ross Stores trades with a forward P/E of 25.8, higher than Walmart and Home Depot.
With the best holiday season in a decade looming, will Ross Stores break out to new 5-year highs heading into 2022?