Retail Earnings Week Kicks Off
Zacks Investment Research | May 17, 2021 04:00AM ET
We’ve got some of the biggest and baddest retail giants releasing their Q1 reports this week as this outstanding earnings season comes to an end. I expect to see some solid forward guidance for brick-and-mortar retailers as the US economy swiftly reopens and foot traffic begins to pick up. You can see analyst expectations from the most important reports to watch out for this week in my chart below.
There have been some notable share price movements for stocks reporting tomorrow. Macy's (NYSE:M) M shares have had a massive 2-day rally of 14% on Friday and another 6% today going into these quarterly results as traders bet on strong full-year guidance following the CDC's announcement that masks are no longer required for those that are vaccinated.
This is a dark contrast to what we see with Home Depot (NYSE:HD) HD shares, which had been a big beneficiary of the pandemic. Home improvement projects were booming throughout the pandemic, and Home Depot swooped up that demand being one of the few retailers to remain open. This outstanding secular performance by HD was illustrated throughout the lockdowns, with record quarterly results in Q2 of 2020 (the depth of the pandemic). HD is down 6.5% from its high just one week ago as investors book profits going into tomorrow morning's earnings report.
Walmart (NYSE:WMT) WMT is 9% off its all-time high, which it hit on the first day of December, and has lost a lot of momentum in recent months. WMT's 50-day moving average dipping below its 200-day moving average (aka the death cross) at the end of March. Investors are hoping tomorrow's earnings will lift WMT out of this trading glut. My upside share price expectations for this report tomorrow are low, with its past 6 quarterly releases resulting in negative price action.
Dillard’s Results Signal Strong Q1 For Department Stores
Dillard's (NYSE:DDS) DDS reported an absolute blowout quarter on Thursday with record profitability to kick off this retail earnings season that has sent DDS up over 40% in the past two trading days. The company announced it would be implementing a $500 million stock buyback program and reinstated its dividend.
This is a positive signal for other department stores reporting this week like Macy's M , TJX Companies (NYSE:TJX) TJX, Kohl's (NYSE:KSS) KSS, and Ross Stores (NASDAQ:ROST) ROST.
Get The News You Want
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer (NYSE:SAM) Company which shot up +143.0% in a little more than 9 months and Nvidia (NASDAQ:NVDA) which boomed +175.9% in one year.
Zacks Investment Research
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.