From Nasdaq: 2025-02-14 18:47:00

Walmart shares have been outperforming the market and peers like Target and Amazon. The company is set to report quarterly results on February 20th, with shares reacting favorably to the last four releases, up over 20% since November.

Walmart’s performance has been impressive, with shares up 84.9% in the last year, compared to the S&P 500, Amazon, and Target. Walmart’s report will set the tone for the retail sector, reflecting consumer spending trends and financial health.

Walmart’s success is attributed to its focus on groceries and staple products, unlike Target’s exposure to discretionary merchandise. The retailer’s digital strategy attracts higher-income households, offsetting lower-income consumer weakness. Walmart’s e-commerce growth opens up higher-margin revenue streams like advertising and third-party fulfillment.

In the retail sector’s Q4 earnings season, 17 S&P 500 retailers have reported, with earnings up 47.1% and revenues up 8.6%. The EPS beat percentage is 64.7%, with 70.6% beating revenue estimates. The performance of online and restaurant operators is tracking above historical averages.

Q4 earnings for the Retail sector, excluding Amazon, show flat earnings on a 6.3% revenue gain, indicating margin pressures. With almost 400 companies reporting results this week, including Walmart, Chinese tech players, and restaurant operators, the earnings landscape continues to evolve.

The overall earnings picture shows growth expectations for 2025 and 2026, with double-digit earnings growth forecasted. The retail sector’s performance, including Walmart’s momentum, will play a key role in shaping the market outlook for the coming quarters.



Read more at Nasdaq:: Retail Earnings Loom: Can Walmart’s Momentum Continue?