|Bid||95.01 x 1800|
|Ask||96.97 x 900|
|Day's Range||95.64 - 97.03|
|52 Week Range||60.20 - 119.71|
|Beta (5Y Monthly)||0.62|
|PE Ratio (TTM)||28.48|
|Earnings Date||Aug 27, 2020 - Aug 31, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||105.35|
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Major retailers are on deck to report earnings results, and BofA Securities analyst Robert Ohmes is naming three top picks: Target Corporation (NYSE: TGT), Dollar Tree, Inc. (NASDAQ: DLTR) and Walmart Inc (NYSE: WMT).Retail Ratings, Price Targets: Ohmes maintained a Buy rating on Target with a $150 price target; a Buy rating on Dollar Tree with a $115 price target; and a Buy rating on Walmart with a $150 price target.BofA's Top Picks: Target is likely to benefit from momentum in the apparel and home categories, which offer "dramatically higher" margins, Ohmes said in a Wednesday note.Dollar Tree should be able to take advantage of a rebound at its core Dollar Tree brand, the analyst said.Walmart should see continued strong grocery sales and profit, along with stronger higher-margin general merchandise sales compared to the first quarter, he said. Elevated Food Sales: Food retail sales remain elevated despite many restaurants and bars reopening, Ohmes said.The ongoing momentum makes the case for retailers to report comp upside, especially among those with fiscal quarters ending in late July or early August, the analyst said. Lower Industry Promotions: The retail space is undergoing a trend of offering consumers fewer industry promotions.In fact, food inflation has been accelerating since April, and this bodes well for retailers that sell groceries, especially the three top picks, Ohmes said. Fewer Trips: Trip consolidation among consumers since the COVID-19 outbreak has applied to shopping trips, the analyst said, adding that this trend bodes well for large discount retailers and convenient omnichannel offerings.Free Cash Flow Strength: Retailers are seeing "unusually strong" top-line trends, and this should support earnings in 2021 and beyond through share buyback programs, paying down debt and other initiatives, Ohmes said.Target is expected to grow the cash on its balance sheet by 16% year-over-year to $2.988 billion in 2020; Dollar Tree by 151% to $1.354 billion; and Walmart by 92% to $18.126 billion, according to BofA's expectations. Related Links:The Retail Misery Story Likely Continued In Q2; Earnings AheadHow Walmart's Thanksgiving Schedule Changes The Holiday Shopping SeasonPhoto courtesy of Walmart. Latest Ratings for WMT DateFirmActionFromTo Jul 2020MKM PartnersInitiates Coverage OnNeutral Jul 2020Morgan StanleyMaintainsOverweight Jun 2020GuggenheimMaintainsBuy View More Analyst Ratings for WMT View the Latest Analyst RatingsSee more from Benzinga * Retail Pro Breaks Down Early Back-To-School Winners, Losers * Ex-Walmart Exec On Supporting American Manufacturing: 'Production Needs To Be Closest To The Point Of Consumption' * 3 Expert Takes On Walmart's New Subscription Service: 'Godzilla Vs. King Kong'(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Dollar Tree (DLTR) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.