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Evaluating Home Depot, Target, Macy's & Retail Stocks Ahead of Earnings

Benjamin Rains

 

Welcome to the latest episode of the Full-Court Finance podcast from Zacks Investment Research where Associate Stock Strategist Ben Rains breaks down what is going on in the retail world after Walmart WMT impressed Wall Street once again last week. We then dive into what investors need to know about Home Depot, Target, and Macy’s ahead of their quarterly earnings releases amid a busy stretch for retailers.

The Dow, S&P 500, and Nasdaq have all continued to reach new highs in November on the back of stronger-than-projected earnings results, the Fed’s third interest rate cut, and some U.S.-China trade war progress. Along with trade, U.S. jobs data came in higher-than-expected last month and U.S. consumers appear to be in a solid place for the holiday shopping season.

With all this in mind, the earnings season is almost over for the S&P 500, except for retailers. Late last week, Walmart posted strong results once again that pointed to its successful e-commerce and delivery expansion in the Amazon AMZN age.

Wall Street has rewarded Walmart recently. But rival Target TGT is on an even better run, with its stock up over 70% in 2019. Target reports its quarterly results before the opening bell on Wednesday. Meanwhile, Home Depot HD, which is set to report Tuesday, has seen its shares surge nearly 40% in 2019.

Macy’s M is one of the last big retailers to report its results later this week. All eyes will be on the department store giant as its struggles to adapt to the changing retail environment mount. Macy’s and fellow department store firms such as Nordstrom JWN and JCPenney JCP have seemingly been unable to grow as everyone from Nike NKE to Lululemon LULU focus on direct-to-consumer expansion.

Kohl's KSS, Urban Outfitters URBN, L Brands LB, Lowe’s LOW, TJX TJX, and a ton of other big retailers also report their quarterly results this week.

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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
 
Lowe's Companies, Inc. (LOW) : Free Stock Analysis Report
 
The Home Depot, Inc. (HD) : Free Stock Analysis Report
 
L Brands, Inc. (LB) : Free Stock Analysis Report
 
lululemon athletica inc. (LULU) : Free Stock Analysis Report
 
Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report
 
Nordstrom, Inc. (JWN) : Free Stock Analysis Report
 
Target Corporation (TGT) : Free Stock Analysis Report
 
The TJX Companies, Inc. (TJX) : Free Stock Analysis Report
 
Walmart Inc. (WMT) : Free Stock Analysis Report
 
Kohl's Corporation (KSS) : Free Stock Analysis Report
 
Macy's, Inc. (M) : Free Stock Analysis Report
 
J. C. Penney Company, Inc. (JCP) : Free Stock Analysis Report
 
NIKE, Inc. (NKE) : Free Stock Analysis Report
 
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