Earnings season is winding down but that means we will hear from many of the retailers in the coming weeks.
This week, about 320 companies are expected to report earnings. It will be led by several of the “essential” retailers who cashed in during the pandemic.
Will they hold onto their advantage now that the recovery is here?
Or will new retail winners emerge?
5 Hottest Retail Earnings Charts This Week
1. Walmart WMT is coming off a miss last quarter. Shares have lagged in 2021 as well, down 3.2% year-to-date compared to the S&P 500 up 11%. Shares are no longer cheap, with a forward P/E of 25. Is it priced for perfection?
2. Home Depot HD has an excellent earnings surprise track record. It has only missed once in the last 5 years and that was during the start of the coronavirus pandemic. Shares have busted out to new highs in 2021 on strength in the housing market, adding 22% year-to-date. Can it continue to rally?
3. The TJX Companies TJX has missed 3 out of the last 4 quarters but shares have broken out to new 5-year highs this year on bullishness about the pandemic recovery. Shares aren’t cheap, with a forward P/E of 30. Is this a retail dark horse?
4. Ralph Lauren Corp. RL has beat the last 2 quarters and has only missed during the pandemic in the last 5 years. Impressive. Shares have staged a huge recovery from 2020’s lows, and are up 31.6% year-to-date. Is all the good news about apparel priced in?
5. Deckers Outdoor Corp. DECK has the best chart of the week. It has only missed once in the last 5 years, in 2017, and has been reporting huge beats during the pandemic. Shares are hitting new 5-year highs again in 2021 as Ugg and Hoka remain hot. With a forward P/E of 23.5, is there still more gas left in the tank?
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 Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Home Depot, Inc. (HD) : Free Stock Analysis Report
Walmart Inc. (WMT) : Free Stock Analysis Report
Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report
Ralph Lauren Corporation (RL) : Free Stock Analysis Report
The TJX Companies, Inc. (TJX) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research