|Bid||84.21 x 1800|
|Ask||84.25 x 800|
|Day's Range||83.17 - 84.46|
|52 Week Range||60.15 - 90.39|
|Beta (3Y Monthly)||0.80|
|PE Ratio (TTM)||14.73|
|Earnings Date||Aug 21, 2019|
|Forward Dividend & Yield||2.64 (3.20%)|
|1y Target Est||89.65|
Investing.com - This week investors will be watching to see how the Federal Reserve may respond to recession fears whipped up by the inversion of the Treasury yield curve.
Target Corp. (NYSE: TGT) this week announced the big-name designs it's bringing back for the 20th anniversary of its Design for All fashion partnerships. The collection, a reflection on two decades of website-crashing, store campouts-causing collaborations with an array of fashion and product designers, will go on sale Sept.
Walmart is a retail titan taking the fight to Amazon. But earnings growth is tepid. The stock is hitting new highs, but is it a good buy?
Editor's note: InvestorPlace's Earnings Reports to Watch is updated weekly. Please check back next week for our latest earnings picks.The earnings calendar turns to retail next week. And that might not be a good thing for the sector.To be sure, Walmart (NYSE:WMT) did post a strong Q2 report on Thursday, with raised full-year guidance leading WMT stock to rally 6%. But that followed a disastrous report from Macy's (NYSE:M), which cut its outlook and saw its stock plunge to a post-financial crisis low.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat split isn't a surprise to anyone who has followed the retail industry in recent years. Those companies with the scale to manage through a quickly changing environment have been able to at least survive, if not thrive. (Walmart stock, for instance, has roughly doubled from late 2015 lows.) Smaller operators, with few exceptions, have taken a beating. * 10 Best Stocks to Buy and Hold Forever Earnings reports next week seem unlikely to change that trend. But specialty retailers like Gap (NYSE:GPS) and department store operators Kohl's (NYSE:KSS) and Nordstrom (NYSE:JWN) will do their best to fight the tide. Meanwhile, three more leaders in the sector will try and keep pace, while a struggling tech giant attempts a turnaround of its own. Broad markets will struggle with their own external challenges, but retailers, in particular, have a big week ahead. Home Depot (HD)Source: Shutterstock Earnings Report Date: Tuesday, Aug. 20, before market openFiscal second-quarter earnings from Home Depot (NYSE:HD) will be closely watched. After all, Home Depot sits at the intersection of several of the fears rattling the market right now. Investors are worried that a recession is coming: Any weakness in consumer demand could be reflected in Home Depot sales.Increased -- and then delayed -- tariffs have amplified those cyclical concerns. Home Depot said after Q1 that it was working to mitigate the impact of those duties, but still forecast a potential impact of $1 billion annually.HD stock already has pulled back about 8% amid those worries. Any weakness in Tuesday morning's report could add to the declines.Meanwhile, rival Lowe's Companies (NYSE:LOW) follows on Wednesday. If both reports disappoint, that would be a signal that even two of the country's strongest retailers aren't immune to external factors. And that would be a big problem for the rest of retail, and maybe even the rest of the market. Target (TGT)Source: Mike Mozart via Flickr (Modified)Earnings Report Date: Wednesday, Aug. 21, before market openFor Target (NYSE:TGT), Wednesday morning's report will help answer which side of the retail divide the company sits. Is Target a real competitor to the likes of Walmart and Amazon (NASDAQ:AMZN)? Or is it not quite large enough, or strong enough, to completely determine its own destiny?Trading in TGT stock over the past few quarters shows that investors haven't quite figured out which side to take. Target stock touched $90 less than a year ago and was at $60 three months later. A 25% rally so far this year shows some confidence, while an ~8% drop in recent weeks (not coincidentally similar to that of HD stock) reflects the rising external risks.And so this seems like an important, and maybe even crucial, earnings report for Target. Walmart's blowout quarter sets the bar high. Target has tariff and macro issues of its own. The stock is cheap enough that it can rise if margins keep expanding. But it's expensive enough that it can fall if they don't. * 10 Cheap Dividend Stocks to Load Up On In short, the question is whether Target is a retail leader? Wednesday's report will help answer that question. VMWare (VMW)Source: Sundry Photography / Shutterstock.com Earnings Report Date: Thursday, Aug. 22, after market closeKey earnings reports next week go beyond the retail space. Software developer VMWare (NYSE:VMW) has an important report on Thursday afternoon. And it won't just impact VMW stock.VMWare earnings will move shares of Dell Technologies (NASDAQ:DELL) whose majority stake in VMWare is worth more than its current market capitalization. (Dell has earnings of its own, but VMWare numbers will be the big mover.) Meanwhile, the company's reported interest in Pivotal Software (NYSE:PVTL) could be a topic of conversation on the post-earnings conference call.But the Pivotal deal and Dell's potential plans for its VMW stake are just noise. VMWare simply has to stem the bleeding. The stock has dropped by 30% just since May. Here, too, cyclical fears are a factor, but soft fiscal first-quarter earnings in late May didn't help the cause. At 20x forward earnings, VMWare stock can rally if the company can deliver. At the moment, however, that seems like a big if.As of this writing, Vince Martin is long shares of Gap, Dell and is short call options in VMWare. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post 3 Earnings Reports to Watch Next Week appeared first on InvestorPlace.
Target (TGT) is chalking out strategies to adapt to the fast-changing retail landscape. These are likely to favorably impact second-quarter results.
Discover why investors have shunned delivery stocks despite growing e-commerce shipments. Position for a rebound using these trading ideas.
J. C. Penney's (JCP) Q2 performance is adversely impacted by weak comps. To improve matters, the company announces partnership with thredUP.
An annual gathering of central bankers in Wyoming and minutes from the latest policy meetings at the Federal Reserve and European Central Bank will give investors fresh insight into monetary policy, amid growing reservations about the health of the global economy. Leaders from the Fed and other major central banks will be in Jackson Hole, Wyoming, for a summit that will draw attention from investors looking for policy clues.
Walmart (NYSE:WMT) stock beat earnings on August 15. Shares popped from $106.20 to over $113 a piece pre-market. But the good news may not last. The specter of recession has hit the market. The U.S.-China trade war continues to accelerate. With these macro factors in mind, is it the right time to buy WMT stock?Source: Shutterstock Investors are digesting the recent earnings report, and making predictions for the next quarter. The recent tariff hikes could materially impact Walmart's gross margins. Add in an looming recession, and the future performance of Walmart stock could be negative.Compared to peers such as Target (NYSE:TGT), Walmart appears overvalued. But despite this premium, is the stock a strong opportunity? Let's have a look.InvestorPlace - Stock Market News, Stock Advice & Trading Tips After-Earnings ImpactWalmart released earnings yesterday. For the June-end quarter, sales were up 1.8% year-over-year. U.S. sales were up 2.8%, beating expectations. International sales fell 1.1%, due to a strong dollar. Adjusted for currency, net sales were up 3.3%. The company's U.S. e-commerce business grew an impressive 37%.Despite a bump in sales, operating income declined 2.9%. This was primarily due to losses at recent Flipkart acquisition. In terms of guidance, Walmart has reduced international net sales growth projections from 5% to ~3-4%. U.S. sales are expected to grow 3% for the year. Flipkart's losses may cause a slight decrease in operating income for the year. But, excluding Flipkart's performance, operating income should see a low-to-mid digit percentage increase. * 15 Growth Stocks to Buy for the Long Haul With the company beating expectations, Walmart stock will see a short-term boost. But now attention moves to the second half of 2019. What type of impact will the U.S.-China trade war have on the Walmart stock price? Will the company's e-commerce strategy pay off? Let's take a closer look at these factors. Trade and E-commerce WoesTwo concerns weigh heavily on the Walmart stock price. The first is the U.S.-China trade wars. With relations deteriorating, both countries are pursuing retaliatory action. The U.S. recently announced plans to raise tariffs on Chinese-made electronics and apparel items. But the White House has recently pushed back the tariff hikes until later this year. This could materially affect Walmart's results in the second half of the year. With increased tariffs, gross margins will likely decline. This would have a negative impact on the Walmart stock price. Investors are anticipating continued growth. But if the tariffs are implemented, delivering said earnings growth could be a challenge.The second factor that is top of mind is e-commerce. Walmart has made big investments in an attempt to compete with Amazon (NASDAQ:AMZN). Prior to Flipkart, the company acquired Jet.com in 2016. But the deal failed to meet expectations. Walmart gave up on turning Jet.com into a leading brand. Instead, the company has integrated Jet's infrastructure into its existing e-commerce operations.The Jet.com deal is a drop in the bucket for Walmart. The company generates about $27 billion in annual operating cash flow. But it could be years before the company succeeds in e-commerce. What does that mean for the Walmart stock price? At the current valuation, WMT stock trades a relatively high valuation. Let's take a look at Walmart's valuation relative to peers. Overvalued Relative to PeersWalmart stock currently trades at a forward price/earnings (forward P/E) ratio of 21.5. The company's enterprise value/EBITDA (EV/EBITDA) ratio is 11.6. Compare this to the stock's closer peer, Target. TGT stock trades at a forward P/E of 14.2, and an EV/EBITDA ratio of 8.3. As I discussed last month, Target shares are undervalued. Despite driving same-store sales growth, investors continue to value TGT at a discount to WMT. * 7 Safe Dividend Stocks for Investors to Buy Right Now With this in mind, it's tough to justify the current premium of Walmart stock. While Walmart has substantial international presence, the company's long-term growth projections are not setting the world on fire. If investor expectations are not met, material downside could be a risk. Shares of WMT stock could trade closer to Target's valuation in the event of a downturn. Bottom Line: Avoid Walmart StockThere's no doubt that Walmart is a solid business. The company's market power and cash flow generation is currently stable. But long-term, the company faces many issues. Its e-commerce efforts remain a work-in-progress. With the recent trade war issues, the company's dependence on imported consumer goods could be its Achilles heel. With Target trading a lower valuation, it is tough to justify the current Walmart stock price.Investors could gain exposure to the same upside by buying TGT stock. All while getting in at a better valuation point. Investors should avoid WMT stock, and consider TGT if they want exposure to big-box retail.As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks Under $5 to Buy for Fall * 5 Stocks to Avoid Amid the Ongoing Trade War * 7 5G Stocks to Buy Now for the Future The post Despite Strong Earnings, It's Tough to Justify Walmart Stock's Valuation appeared first on InvestorPlace.
It’s back-to-school season for Target Corp., and not just when it comes to discounts. The Minneapolis-based retailer is putting a bullseye on college students as it looks for store growth opportunities. Last year, Target (NYSE: TGT) opened 10 small-format stores on or near college campuses.
Walmart Inc. is scheduled to report second-quarter earnings on Thursday and UBS analysts think the results will show that Amazon.com Inc.’s big Prime Day event was a plus for both companies. This year’s Prime Day motivates shoppers to search for deals both on Amazon and elsewhere, with the two-day event becoming the kickoff to the back-to-school shopping season. For the quarter, UBS thinks Walmart’s (WMT) e-commerce growth was 35% in the U.S..
Target Corporation (NYSE:TGT) is about to trade ex-dividend in the next 4 days. If you purchase the stock on or after...
DICK'S Sporting (DKS) is likely to gain from omni-channel efforts and merchandising strategy in second-quarter fiscal 2019. Weak hunting business is a concern.
Macy's (M) reports negative earnings surprise during the second quarter of fiscal 2019. Lower-than-expected performance and trimmed view gravely hurt investor sentiment.
Target (TGT) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.