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The Zacks Analyst Blog The Home Depot, Walmart and Target

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For Immediate Releases

Chicago, IL – November 12, 2024 – 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 including The Home Depot Inc. (HD - Free Report) , Walmart Inc. (WMT - Free Report) and Target Corp. (TGT - Free Report) .

 Here are highlights from Tuesday’s Analyst Blog:

3 Retail Giants Poised to Beat on Earnings This Month

We are in the last leg of the third-quarter 2024 earnings season. So far earnings results have been better than expected. Major companies in most sectors have already reported their quarterly financial numbers. However, the retail sector remains a notable exception.

We have selected three retail behemoths for investors’ that will report earnings results in the next 10 days. These stocks, with a favorable Zacks Rank, are likely to beat third-quarter earnings estimates.

The combination of a likely earnings beat and a favorable Zacks Rank should drive their stock prices in the near term. These companies are — The Home Depot Inc. , Walmart Inc. and Target Corp.

Third-Quarter Earnings Season So Far

As of Nov 8, 452 S&P 500 companies have reported their quarterly financial numbers. Total earnings of these companies are up 7.1% year over year on 5.5% higher revenues, with 73.5% beating earnings per share (EPS) estimates and 61.5% beating revenue estimates.

Looking at the third quarter as a whole, total earnings for the S&P 500 Index are expected to be up 7.4% from the same period last year on 5.6% higher revenues. This follows 10.2% year-over-year EPS growth on 5.5% higher revenues in the previous quarter.

Find the latest earnings estimates and surprises on ZacksEarnings Calendar.

3 Big Retailers to Buy Ahead of Earnings Results

We have narrowed our search to three giant retailers that will report earnings results within next week. Each of our picks carries a Zacks Rank #2 (Buy) and has a positive Earnings ESP. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that for stocks with the combination of a Zacks Rank #3 or better (Rank #1 or 2) and a positive Earnings ESP, the chance of an earnings beat is as high as 70%. These stocks are anticipated to appreciate after their earnings release. You can uncover the best stocks to buy or sell before they’re reported with ourEarnings ESP Filter.

The Home Depot Inc.

The Home Depot is gaining from its “One Home Depot” plan focused on technology, expanding supply-chain facilities, and improving the digital experience. HD’s interconnected retail strategy and strong technology infrastructure have consistently boosted web traffic in recent quarters.

The Home Depot is also advancing investments to build a Pro ecosystem. HD’s sales saw a modest recovery in second-quarter fiscal 2024 driven by contributions from the recent SRS acquisition. HD has an Earnings ESP of +4.09%. The company will report on Nov 12, before the opening bell.

HD has an expected revenue and earnings growth rate of 3.2% and a negative 0.7%, respectively, for the current year (ending January 2025). The Zacks Consensus Estimate for current-year earnings has improved 0.01% over the last 30 days.

Walmart Inc.

Walmart has been benefiting from its diverse business model that spans multiple segments, channels, and formats. WMT’s strong omnichannel strategy has boosted traffic across both physical stores and digital platforms.

WMT emphasis on improving delivery services has been successful, contributing to steady grocery market share gains. Upsides like these, along with growth in the advertising business, and e-commerce sales surge have benefited it. Walmart has an Earnings ESP of +1.61%. The company will report on Nov 19, before the opening bell.

WMT has an expected revenue and earnings growth rate of 4.7% and 9.9%, respectively, for the current year (ending January 2025). The Zacks Consensus Estimate for current-year earnings has improved 0.4% over the last 90 days.

Target Corp.

Target has positioned itself as a formidable player by adapting to evolving market dynamics and shifting customer preferences. Through a strong focus on innovation, enhancing customer experience, and improving operational efficiency, TGT has laid a solid foundation.

Target's commitment to delivering value, expanding margins, and fostering customer loyalty through strategic initiatives enhances its investment appeal. We noted that comparable sales grew 2% in the second quarter. This growth stemmed from a 3% rise in customer traffic. TGT has an Earnings ESP of +0.73%. The company will report on Nov 20, before the opening bell.

TGT has an expected revenue and earnings growth rate of a minus 0.6% and 6.8%, respectively, for the current year (ending January 2025). The Zacks Consensus Estimate for current-year earnings has improved 0.2% over the last seven days.

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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.


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