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What's Next for Walmart Stock & A Target Earnings Preview

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 Walmart’s WMT recent quarterly financial results that helped to once again prove the retail powerhouse is ready to compete directly against Amazon AMZN in the e-commerce age. The episode then shifts to what to expect from Target’s TGT quarterly earnings, which are due out Wednesday.

Walmart topped bottom-line projections last week and its revenue roughly matched our Zacks Consensus Estimate. More importantly, Walmart's U.S. Q2 comp sales grew 2.8%, with U.S. e-commerce sales up 37%. The company’s wide array of delivery and pick up options have helped it increase its market share, and it plans to continue to expand. This will also soon include free next-day delivery offerings on qualifying orders and in-home grocery delivery services.

Walmart has also beefed up its business through acquisitions, which includes one of India’s largest e-commerce sites, Flipkart. Shares of the Bentonville, Arkansas-headquartered retailer have outpaced Amazon recently and WMT stock could attract even more investor attention as the yield on the 10-year U.S. Treasury note slips.

Meanwhile, Walmart rival Target looks solid heading into its Q2 earnings results that are due out before the opening bell on Wednesday, August 21. Like Walmart, Kroger KR, Costco COST, and many other major retailers, Target has expanded its digital and delivery businesses. The firm has also attracted more higher-income shoppers through partnerships and compelling brands from clothing to home furnishing.

Target also announced Monday morning that it will roll out its largest owned food and beverage brand called Good & Gather. This could help it draw customers away from the likes of Whole Foods. Overall, Target is a Zacks Rank #2 (Buy) at the moment that has proved to Wall Street it is able to adapt and expand in the new retail age, unlike firms such as Macy’s M and JC Penney JCP.

As a reminder, if you feel that we missed something, or if you have any topic suggestions, shoot us an email at podcast@zacks.com. Make sure to check out all of our other audio content at zacks.com/podcasts, and remember to subscribe and leave us a rating wherever you listen to your podcasts.

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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
 
Costco Wholesale Corporation (COST) : Free Stock Analysis Report
 
Target Corporation (TGT) : Free Stock Analysis Report
 
Walmart Inc. (WMT) : Free Stock Analysis Report
 
Macy's, Inc. (M) : Free Stock Analysis Report
 
J. C. Penney Company, Inc. (JCP) : Free Stock Analysis Report
 
The Kroger Co. (KR) : Free Stock Analysis Report
 
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