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5 Dynamic Retail Earnings Charts

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Earnings season continue to roll on with over 300 companies expected to report this week but we’re getting towards the end of it now which means that the retailers are set to report.

Both Walmart and Target have both already warned on earnings due to rising inventory and inflationary pressures. Shares of Walmart and Target, as well as all retailers, are off their 2021 highs.

Is the “bad” news already priced in?

Or are further guidance cuts and margin pressures still to come?

5 Dynamic Retail Earnings Charts

1.    Walmart (WMT - Free Report)

Walmart missed on earnings last quarter after 4 beats in a row. It has also warned on this quarter already.

Shares of Walmart are down 13.2% over the last year but have rallied off the recent lows, gaining 5.5%.

It’s not cheap, however, trading at 23x forward earnings.

Is the negative news already priced into Walmart?

2.    Home Depot (HD - Free Report)

Home Depot has a great earnings surprise track record as it has only missed once in the last 5 years. That’s impressive during the pandemic. It has beat 8 quarters in a row.

Home Depot shares are off their 2021 highs but are off only 5% over the last year. They have rallied off the summer lows, gaining 9.6% in the last month.

It’s not cheap, with a forward P/E of 19.2. But Home Depot does reward shareholders with a dividend, currently yielding 2.4%.

Will Home Depot’s hot streak end this quarter as housing slows?

3.    Target (TGT - Free Report)

Target missed last quarter and warned. It then warned again several weeks later.

Shares of Target are down 34% over the last year but have rallied in the prior month, gaining 18.6%.

Target had a big 13-quarter earnings streak prior to last quarter’s miss.

Is the bad news priced into Target or are more warnings still to come?

4.    The TJX Companies, Inc. (TJX - Free Report)

The TJX Companies, which owns T.J. Maxx, Marshall’s and Home Goods, has beat 4 out of the last 5 quarters.

Shares of TJX Companies have fallen 7.1% in the last year but are up 10.8% in the prior month.

But shares aren’t cheap. TJX Companies trades with a forward P/E of 21.

The Home Goods segment soared during the pandemic as people invested in their home, but will it hurt TJX Companies post pandemic if business slows?

5.    Ross Stores (ROST - Free Report)

Ross Stores missed last quarter after beating 4 quarters in a row prior to that.

The Street is negative on Ross Stores this year, with shares down 27.7% over the last year. However, they’ve bounced off the summer lows, adding 18%.

But shares of Ross Stores are not cheap, as they are trading with a forward P/E of 21.

Is all the negative news priced into Ross Stores?