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The Zacks Analyst Blog Highlights Walmart, NIKE, TJX, Gilead Sciences and Schlumberger
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For Immediate Release
Chicago, IL – October 18, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Walmart Inc. (WMT - Free Report) , NIKE, Inc. (NKE - Free Report) , The TJX Companies, Inc. (TJX - Free Report) , Gilead Sciences, Inc. (GILD - Free Report) and Schlumberger Ltd. (SLB - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Q3 Earnings Scorecard & Analyst Reports for Walmart, NIKE and TJX
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features a real-time update on the Q3 earnings season and new research reports on 16 major stocks, including Walmart Inc., NIKE, Inc. and The TJX Companies, Inc. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Including this morning's earnings reports, we now have Q3 results from 39 S&P 500 members that combined account for 11.4% of the index's market capitalization. Total earnings for these 39 index members are up +7.1% from the same period last year on +7% higher revenues, with 89.7% beating EPS estimates and 69.2% beating revenue estimates.
While the beats percentages are about in-line with the preceding 20-quarter average for this group of 39 index members, the earnings growth rate represents a modest improvement over other recent quarters.
For the Finance sector, which has dominated this initial reporting cycle, we now have Q3 results from 31.2% of the sector's total market capitalization in the S&P 500 index. Total earnings for these Finance companies are up +9.7% from the same period last year on +9.3% higher revenues, with 100% of the companies beating EPS estimates and 72.7% beating revenue estimates. While the revenue beats percentage for this group of Finance sector companies is about in-line with other recent quarters, the EPS beats percentage is the highest for this group since the second quarter of 2021.
Hard to draw any firm conclusions from this relatively small sample of results at this stage, but it is nevertheless a positive start to the Q3 earnings season.
Looking at Q3 as a whole, combining the actual results for the 39 index members that have reported with estimates for the still-to-come companies, total earnings for the quarter are now expected to be down -1.1% on +0.8% higher revenues.
Excluding the Energy sector drag, Q3 earnings for the rest of the index would be up +3.9% on +3.3% higher revenues.
Today's Featured Analyst Reports
Walmart shares have outperformed the Zacks Retail - Supermarkets industry over the past year (+20.2% vs. +16.7%). The Zacks analyst believes that the company’s robust omnichannel operations and strategic focus on enhancing delivery services have driven its sales and strong global e-commerce business.
However, an adverse category mix have hurt the company and is likely to linger in the third quarter. Also, its variable pay expenses are expected to increase, thereby impacting its bottom line.
Nike shares have outperformed the Zacks Shoes and Retail Apparel industry over the past year (+13.7% vs. +10.9%). The Zacks analyst believes that compelling product innovation and digital leadership, continued strength in retail traffic trends within NIKE Direct, and robust performance in its digital and DTC businesses have been key drivers of the company’s business growth.
Yet, dismal fourth-quarter earnings performance have ensured that its shares have lagged the industry. Additionally, NIKE witnessed decline in gross margin owing to higher freight, logistics and input costs, and currency headwinds.
Shares of TJX have outperformed the Zacks Retail – Discount Stores industry over the past year (+34.2% vs. +5.9%). Per the Zacks analyst, the company’s off-price business model, strategic store locations, impressive brands and fashion products and supply-chain management have been aiding its performance.
The recovery of the HomeGoods (U.S.) division, a solid store and e-commerce growth efforts also bode well.
However, high wages, high debt level and very high supply chain costs have been major headwinds. Currency might also act as a deterrent.
Other noteworthy reports we are featuring today Gilead Sciences, Inc. and Schlumberger Ltd.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
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 https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights Walmart, NIKE, TJX, Gilead Sciences and Schlumberger
For Immediate Release
Chicago, IL – October 18, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Walmart Inc. (WMT - Free Report) , NIKE, Inc. (NKE - Free Report) , The TJX Companies, Inc. (TJX - Free Report) , Gilead Sciences, Inc. (GILD - Free Report) and Schlumberger Ltd. (SLB - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Q3 Earnings Scorecard & Analyst Reports for Walmart, NIKE and TJX
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features a real-time update on the Q3 earnings season and new research reports on 16 major stocks, including Walmart Inc., NIKE, Inc. and The TJX Companies, Inc. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Q3 Earnings Season Scorecard
Including this morning's earnings reports, we now have Q3 results from 39 S&P 500 members that combined account for 11.4% of the index's market capitalization. Total earnings for these 39 index members are up +7.1% from the same period last year on +7% higher revenues, with 89.7% beating EPS estimates and 69.2% beating revenue estimates.
While the beats percentages are about in-line with the preceding 20-quarter average for this group of 39 index members, the earnings growth rate represents a modest improvement over other recent quarters.
For the Finance sector, which has dominated this initial reporting cycle, we now have Q3 results from 31.2% of the sector's total market capitalization in the S&P 500 index. Total earnings for these Finance companies are up +9.7% from the same period last year on +9.3% higher revenues, with 100% of the companies beating EPS estimates and 72.7% beating revenue estimates. While the revenue beats percentage for this group of Finance sector companies is about in-line with other recent quarters, the EPS beats percentage is the highest for this group since the second quarter of 2021.
Hard to draw any firm conclusions from this relatively small sample of results at this stage, but it is nevertheless a positive start to the Q3 earnings season.
Looking at Q3 as a whole, combining the actual results for the 39 index members that have reported with estimates for the still-to-come companies, total earnings for the quarter are now expected to be down -1.1% on +0.8% higher revenues.
Excluding the Energy sector drag, Q3 earnings for the rest of the index would be up +3.9% on +3.3% higher revenues.
Today's Featured Analyst Reports
Walmart shares have outperformed the Zacks Retail - Supermarkets industry over the past year (+20.2% vs. +16.7%). The Zacks analyst believes that the company’s robust omnichannel operations and strategic focus on enhancing delivery services have driven its sales and strong global e-commerce business.
However, an adverse category mix have hurt the company and is likely to linger in the third quarter. Also, its variable pay expenses are expected to increase, thereby impacting its bottom line.
(You can read the full research report on Walmart here >>>)
Nike shares have outperformed the Zacks Shoes and Retail Apparel industry over the past year (+13.7% vs. +10.9%). The Zacks analyst believes that compelling product innovation and digital leadership, continued strength in retail traffic trends within NIKE Direct, and robust performance in its digital and DTC businesses have been key drivers of the company’s business growth.
Yet, dismal fourth-quarter earnings performance have ensured that its shares have lagged the industry. Additionally, NIKE witnessed decline in gross margin owing to higher freight, logistics and input costs, and currency headwinds.
(You can read the full research report on Nike here >>>)
Shares of TJX have outperformed the Zacks Retail – Discount Stores industry over the past year (+34.2% vs. +5.9%). Per the Zacks analyst, the company’s off-price business model, strategic store locations, impressive brands and fashion products and supply-chain management have been aiding its performance.
The recovery of the HomeGoods (U.S.) division, a solid store and e-commerce growth efforts also bode well.
However, high wages, high debt level and very high supply chain costs have been major headwinds. Currency might also act as a deterrent.
(You can read the full research report on TJX here >>>)
Other noteworthy reports we are featuring today Gilead Sciences, Inc. and Schlumberger Ltd.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
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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 https://www.zacks.com/performance for information about the performance numbers displayed in this press release.