WMT

Walmart and Target are among the retailers that should be capable of finding their niche in an ever-shifting consumer landscape.

Costco cleared sales estimates Thursday while retailers warn that higher fuel prices and inflation pressures could hit consumer spending.

While the report was solid in most regards, it was not the blowout results some investors may have come to expect.

Within roughly 24 hours of each other last week, two of the biggest names in American retail opened their books -- and both gave investors plenty to chew on. Big-box retailer Target Corporation (NYSE: TGT) returned to sales growth after a long slump, while Walmart (NASDAQ: WMT) once again saw robust growth across its business. It was also the first full quarter under new leadership at each company, with Michael Fiddelke at Target and John Furner at Walmart both having stepped into the CEO role on Feb. 1. Yet investors didn't exactly celebrate. Both stocks slipped on their reports, a reminder that strong numbers don't always translate into immediate gains -- especially after a run-up. So with both retailers fresh off earnings, which one looks like the better stock to buy today? For the first time in over a year, Target's business is moving in the right direction. The big-box retailer's first-quarter comparable sales -- a measure of sales at stores and digital channels open at least a year -- rose 5.6%, ending four straight quarters of declines. Total net sales climbed 6.7% to $25.4 billion, and customer traffic grew 4.4%, suggesting more shoppers, not just higher prices, drove the gain. Encouragingly, Target's strength was broad. Comparable digital sales rose 8.9%, led by more than 27% growth in same-day delivery tied to the company's Target Circle 360 membership. And Target's non-merchandise sales -- which include its Roundel advertising arm, membership fees, and the Target+ online marketplace -- jumped nearly 25%. Those are exactly the higher-margin revenue streams the retailer needs as it works to rebuild profits. The earnings line looked messier at first glance, but only because of a one-time item. A year earlier, Target had booked gains from legal settlements that inflated its reported profit, which made this quarter's results look like a decline. Strip those gains out, and non-GAAP (adjusted) earnings per share actually rose 32% to $1.71. Buoyed by the quarter's robust results, management roughly doubled its full-year net sales growth target to around 4%. Still, one good quarter doesn't undo a year of struggles. Target management struck a measured tone, telling investors during the company's earnings call that it is keeping "a cautious outlook" given the work ahead and ongoing macroeconomic uncertainty. Target's recovery may be showing progress, but it'...

Walmart (NASDAQ: WMT) stock has dropped 11% over the past five trading days. This downturn comes right on the heels of the company's recent Q1 2027 earnings release, where, despite strong e-commerce growth and beating revenue forecasts, the stock faced immediate pressure. It is a pullback that should make investors take notice. When a reliable stock takes a short-term hit following an earnings report, the instinct is to fret over the immediate downside. Is that the right move? Not if you are focused on building a resilient portfolio. The real question to ask is simple: Does this stock actually help diversify your money? Let's look past the daily market noise and examine how Walmart behaves relative to major asset classes over the long haul. Photo by Alexas_Fotos on Pixabay True diversification means owning assets that do not move in perfect harmony with the rest of the market. On this front, Walmart offers a unique setup. Over the last five years, Walmart has maintained a modest 34.3% correlation with the S&P 500. It shares some general directional trends with the broader market, but it still offers distinct, idiosyncratic behavior useful for satellite allocations. A diversifying asset is only helpful if it actually offers decent returns. To judge this, investors look at upside capture. This metric tracks how much of the market's gains a stock pockets when the indexes are roaring. Walmart currently holds a low upside capture ratio of 8.5, which tells us it tends to lag behind during powerful bull markets. Because it does not chase the market aggressively upward, its true value rests on acting as a steady, non-correlated shock absorber when things get bumpy. Investors looking to see how it holds up during market corrections can explore Stress Testing WMT: Historical Drawdowns and Macro Risks. An uncorrelated stock is still a bad investment if the underlying company is falling apart. So, how is the actual business holding up? Here is a quick look at WMT's fundamental health. While we compare it against the S&P 500 median, it further helps to understand WMT's standing against direct peers. Walmart is built for steady stability rather than explosive growth, but investors are completely fine paying a premium for that peace of mind. Just look at the numbers. Its price-to-earnings ratio sits at a hefty 44.4 compared to the S&P 500 median of 23.5, proving folks will...

Costco is due to report earnings Thursday afternoon, with traders anticipating the stock could swing up to 3% in either direction by the end of the week. Analysts project rising sales and profits, expecting consumers flocked to the warehouse retailer for deals. Costco Wholesale is set to report earnings after the closing bell Thursday, with traders anticipating a sizable move from the warehouse retailer's stock following the results. Based on current options pricing, Costco (COST) shares are seen swinging up to about 3% by the end of the week. From Tuesday close, that could lift the shares as high as $1,032, nearing their record earlier this month, or drag them below $974. Shares of Costco are up more than 16% since the start of the year, though they've pulled back from their highs after rival Walmart (WMT), which owns Sam's Club, posted mixed results and said it was seeing signs that many consumers may be feeling squeezed financially. Costco's results could offer more insights into the health of the American consumer, after reports from other retailers indicated inflation and soaring fuel prices are taking their toll, with some grocery stores considering price cuts. Ahead of the report, UBS analysts reiterated a "buy" rating and lifted their price target to a Street-high $1,275. The analysts said they see Costco reporting "robust" results, anticipating consumers likely flocked to the warehouse retailer for lower gas prices and deals on other purchases. Investors could also focus on Costco's membership growth and renewal rates, they said. Analysts see Costco reporting fiscal third-quarter revenue of $69.47 billion, up 10% year-over-year, along with earnings of $4.92 per share, up from $4.28 in the year-ago quarter, per estimates compiled by Visible Alpha. The retailer is expected to report a 5% jump in total members to 83.63 million, and comparable store sales are projected to have grown by about 7.9%, and 6.5% excluding more volatile gas and currency exchange impacts. Analysts are largely bullish on Costco. Of the 15 analysts with current ratings tracked by Visible Alpha, nine have recommended buying the stock, compared to four neutral ratings, and just one "sell" rating. Their average price target of about $1,060 would suggest close to 6% upside from Tuesday's close. Read the original article on Investopedia

Walmart Inc. WMT shares plunged 8.1% after the retail giant released first-quarter fiscal 2027 results, even though the company delivered healthy sales growth and reiterated its full-year guidance. The sharp sell-off reflected investor concerns over profitability pressures and a cautious consumer environment rather than weakness in Walmart’s core operations.Over the past three months, Walmart has declined 6.2%, which is in line with the industry’s performance. However, the retail giant has underperformed the broader Zacks Retail – Wholesale sector as well as the S&P 500’s respective gains of 4.3% and 9.2% in the same time frame. Image Source: Zacks Investment Research Meanwhile, other retailers like Target Corporation TGT and Costco Wholesale Corporation COST have risen 10.4% and 1.7%, respectively, whereas The Kroger Co. KR has dipped 1.5%. Walmart’s post-earnings drop was mainly related to profitability concerns. The company delivered strong first-quarter fiscal 2027 sales, with total revenues rising 7.3% year over year to $177.8 billion. However, the adjusted operating income (on a constant currency or cc basis) increased only 5.1% to $7.5 billion, showing that higher costs limited margin expansion.Fuel costs were a major pressure point. Walmart absorbed about $175 million in higher-than-planned fuel expenses across its distribution and fulfillment operations, which hurt operating income growth by roughly 250 basis points. This seems to have weighed on investor sentiment despite the company’s solid sales performance.Operating, selling, general and administrative expenses increased 8.9% to nearly $37.2 billion. Higher depreciation costs from investments in automation, technology and fulfillment, along with increased healthcare expenses from associate enrollment and medical cost inflation, added to the pressure. Investors were also cautious about consumer spending. Walmart noted that lower-income shoppers remain budget-conscious amid elevated fuel prices and inflation. This combination of slower profit growth, cost inflation and cautious consumer signals overshadowed Walmart’s strong sales trends, triggering the sharp pullback in WMT shares. Despite near-term concerns, Walmart’s long-term growth story remains firmly intact. The company continues to gain market share across income groups, supported by its strong value positioning and expanding omnichannel ca...

Interested in Walmart Inc.? Here are five stocks we like better. Despite all three posting solid results, TJX Companies rose 5.6% after earnings, while Walmart fell 7.3% and Target dropped 3.9%. Walmart maintained its fiscal 2027 outlook after a roughly 25% six-month rally, giving investors little reason to push shares higher. TJX raised full-year sales and EPS growth guidance and increased its share buyback spending plans by $250 million, to as much as $3 billion. Retail earnings season delivered a clear reminder that good results are not always enough. Walmart (NASDAQ: WMT), Target (NYSE: TGT) and TJX Companies (NYSE: TJX) all posted solid quarterly numbers recently, but investors reacted to the reports very differently. → Voya Financial Grows Earnings Across All 3 Business Segments For Walmart and Target, strong sales growth was overshadowed by already-elevated expectations and lingering guidance concerns. For TJX, a cleaner setup, stronger outlook and larger buyback plan gave the market a reason to reward the stock. Arguably, the biggest disappointment from the latest round of retail store earnings reports was Walmart. Overall, WMT stock dropped 7.3% after it released earnings on May 21. → SpaceX Gets the Attention, But These 4 Stocks Could Get the Returns But the problem wasn’t that Walmart's business wasn't performing well—it most certainly was. The company saw revenues grow by over 7% year-over-year (YOY), or 5.9% on a constant currency basis, to $177.75 billion. This marked Walmart's fastest revenue growth since calendar Q1 2023. Adjusted earnings per share (EPS) also rose solidly by 8% YOY. Both figures slightly beat Wall Street estimates. But investors wanted more than a solid quarter. They wanted Walmart to also raise its forward expectations. → Ross Stores Earnings Beat Sends Stock To New Highs Prior to its post-earnings decline, Walmart shares had delivered a total return of approximately 25% over the past six months. This was nearly double the S&P 500’s return of around 13% over the same period. Walmart, however, maintained its full-year fiscal 2027 outlook. And after the stock’s sharp rally, that decision left investors with little incremental reason to keep bidding shares higher. Note that the company’s fiscal reporting period is several quarters ahead of the calendar year period. The company continues to expect full-year adjusted EPS in the...

Interested in Target Corporation? Here are five stocks we like better. Walmart, Home Depot, and other retailers say consumers remain active but increasingly price-sensitive. Buy-Now-Pay-Later delinquencies are rising sharply, signaling growing financial stress among lower-income consumers. Investors may need a more selective approach toward retail and consumer-facing stocks in a bifurcated economy. The stock market and the economy are not the same thing, but in 2026, they share one trait: skepticism. Despite blockbuster earnings reports from companies like NVIDIA (NYSE: NVDA), Palantir Technologies (NASDAQ: PLTR), and Alphabet (NASDAQ: GOOGL), this may be the most reluctant bull market in history. That doesn’t mean investors are leaving the market, but the concentration of market winners is still not broadly expanding to other sectors. The recent retail earnings reports aren’t going to change that. On the surface, the consumer looks resilient. The retail sales data continues to at least meet, if not exceed, expectations. However, all may not be as it seems. Retail giants like Walmart Inc. (NASDAQ: WMT), Home Depot (NYSE: HD) and TJX Companies (NYSE: TJX) have been telling a cautious story. → Voya Financial Grows Earnings Across All 3 Business Segments Consumers are still spending, but with real intentionality. And since investors are also consumers, it may be getting harder to separate the two. The investor deciding whether to add a retail stock to their portfolio and the shopper deciding whether to remodel their kitchen are, increasingly, the same person making the same calculation: is now the right time to commit? The word "choiceful" has become part of the retail lexicon. Walmart used it explicitly on its Q1 earnings call to describe a customer who is still showing up but making sharper trade-offs at every price point. Management also pointed to consumers shifting toward private-label brands, even among higher-income consumers. → SpaceX Gets the Attention, But These 4 Stocks Could Get the Returns Home Depot offered one of the more telling data points of the earnings season: same-store sales growth remained modest, with customers completing smaller repair and maintenance projects while continuing to defer large remodels. Lowe's (NYSE: LOW) also spoke of a consumer who is engaged but not confident. Both stocks have held up reasonably well because repair-and...

Investors have a short week ahead—and a long list of retailer earnings to peruse. Quarterly results from companies including Dollar Tree, Burlington Stores, Gap and American Eagle Outfitters are set to land this week. They could offer more insights into how consumers are responding to high gas prices, rising inflation and a stalled job market. Investors are looking for clearer trend lines after mass retailers painted a somewhat muddled outlook. Last week, Walmart issued a soft forecast for the current quarter, though it maintained its full-year outlook. Target topped expectations and raised its outlook. Still, shares of both companies fell. Shoe and apparel companies had better luck impressing investors: Strong results boosted shares of VF Corp., the parent company of The North Face and Timberland; Amer Sports, the parent company of Arc’Teryx; and Ralph Lauren. Despite feeling downbeat about the economy, Americans have continued to spend, a break with historic norms. Investors are wondering how long that attitude will last, and they’ll get fresh data Tuesday when the Conference Board, an economic think tank, updates its Consumer Confidence Index. The week may also shed further light on the state of the AI trade after Nvidia's results last week. Dell Technologies, Synopsys, and Marvell Technology are set to hand in results. Dell and Synopsys executives have said demand remains brisk. The major stock indexes all ended last week with gains, closing out affairs with a modestly upbeat session that lifted the benchmark S&P 500 to an eighth consecutive week of gains. Investors tracked a potential thaw in U.S.-Iran relations, falling oil prices and earnings from Nvidia that showed the potential for the AI buildout to stay on track. Read Investopedia's full coverage of Friday's trading here. Stock and bond markets will be closed Monday for Memorial Day. Here's a look at notable events happening throughout the rest of the week. TradingView publishes a more detailed calendar, but clicking the link will take you off the Investopedia site. Tuesday, May 26: The Conference Board is set to update its U.S. Consumer Confidence Index at 10 a.m. ET. Consumers have been relatively pessimistic, though their mood brightened a bit last month. Wednesday, April 27: Best Buy (BBY) is slated to release its first-quarter results and host a conference call at 8 a.m. ET. The forum will gi...

Walmart Inc. (NASDAQ:WMT) shareholders are probably feeling a little disappointed, since its shares fell 8.5% to US$120 in the week after its latest quarterly results. The result was positive overall - although revenues of US$178b were in line with what the analysts predicted, Walmart surprised by delivering a statutory profit of US$0.67 per share, modestly greater than expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. After the latest results, the 35 analysts covering Walmart are now predicting revenues of US$751.4b in 2027. If met, this would reflect a reasonable 3.6% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be US$2.90, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of US$748.5b and earnings per share (EPS) of US$2.90 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates. View our latest analysis for Walmart It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$138. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Walmart, with the most bullish analyst valuing it at US$154 and the most bearish at US$70.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business. These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Walmart's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Walmart'shis...

Ross Stores earnings growth accelerated again after strong results from off-price peer TJX, after Walmart warned on Q2 amid high gas prices.