Five large-cap retailers expected to beat earnings expectations due to strong performance and market share gains.

From NASDAQ.: 2024-05-21 07:38:00

The first-quarter 2024 earnings season has surpassed expectations, with 467 companies on the S&P 500 Index reporting a 4.6% increase in total earnings and 4% higher revenues. Most sectors have completed results declarations, with the retail sector set to beat on earnings this month. Five retail giants are expected to drive stock prices in the near term.

Despite the current 23-year high interest rate, the U.S. economy remains resilient, with strong personal consumption expenditure driving the retail sector’s performance in Q1 2024. Retail sales rebounded in February and March after a decline in January, and industry participants are focusing on product innovations and expanding e-commerce capabilities to gain market share.

Five large-cap retail stocks are poised to beat earnings expectations this month, with each company showing a combination of Zacks Rank #2 or 3 and a positive Earnings ESP. Among these stocks, The TJX Companies Inc. is benefiting from its off-price business model and robust performance in key segments, with an anticipated 2-3% rise in comparable store sales for fiscal 2025.

Target Corp. is expected to capture market share with its value proposition and growth initiatives, while Williams-Sonoma Inc. is seeing success in its e-commerce business and B2B initiative. Deckers Outdoor Corp. is focused on product innovation and brand expansion, and Dollar General Corp. remains a strong growth story in the retail industry, with value-creating initiatives driving market share gains.



Read more at NASDAQ.:: 5 Big Retailers Likely to Gain on Earnings Beat This Month