4 Retail Stocks With High Probability to Beat on Earnings

From Nasdaq:

Investors are eagerly awaiting upcoming earnings releases that could significantly influence market sentiment in the Retail-Wholesale sector. With a record-breaking 3.8% surge in holiday season sales, consumer spending and confidence have seen a resurgence. The sector also saw top-line growth of 6.3% and 27.8% bottom line growth in the previous reporting cycle.

Retailers are addressing higher costs by recalibrating pricing strategies, refreshing product assortments, and embracing consumer-centric approaches. Key players like American Eagle Outfitters, Inc. AEO, Costco Wholesale Corporation COST, Walmart Inc. WMT, and Burlington Stores, Inc. BURL are poised to exceed earnings estimates this season.

American Eagle Outfitters, Inc. with a Zacks Rank #1 and an Earnings ESP of +0.87% is expected to see a 35.1% increase in earnings. Costco Wholesale Corporation, with a Zacks Rank #2 and an Earnings ESP of +1.50% has a consensus estimate implying an 8.8% increase in earnings. Walmart Inc. with a Zacks Rank #3 and an Earnings ESP of +1.70% has a consensus estimate suggesting a 4.7% decrease in earnings.

Burlington Stores, Inc., with a Zacks Rank #3 and an Earnings ESP of +1.35%, has a consensus estimate indicating a 9.5% increase in earnings. These companies are making strategic efforts to improve performance and position for growth, making them attractive investment choices.



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