Key Takeaways TJX delivered Q4 EPS of $1.43 and $17.7B in sales, with both metrics topping estimates.Q4 comps rose 5% for TJX, driven by gains across Marmaxx, HomeGoods, Canada and International.TJX projects FY27 EPS of $4.93-$5.02 and 2%-3% comparable sales growth.The TJX Companies, Inc. (TJX) posted fourth-quarter fiscal 2026 results, wherein the top and bottom lines beat the Zacks Consensus Estimate. Both metrics also increased from the year-ago quarter.TJX's Quarterly Metrics: Key InsightsThe TJX Compan ...

Key Takeaways Lowe's Q4 earnings and sales beat estimates, with comps up 1.3% on Pro and holiday strength.LOW posted higher net sales but saw its operating margin narrow to 8.3% from 9.9% last year.Lowe's expects FY26 sales of $92B-$94B and adjusted EPS of $12.25-$12.75.Lowe’s Companies, Inc. (LOW) posted fourth-quarter fiscal 2025 results, wherein both top and bottom lines beat the Zacks Consensus Estimate and increased year over year. The Mooresville, NC-based home improvement retailer posted another quar ...

We recently published an article titled 12 Best Retail Stocks to Buy According to Analysts. On February 17, Dollar Tree, Inc. (NASDAQ:DLTR) was upgraded to Buy from Neutral by Rothschild & Co Redburn, which established a $165 price target. Earlier, on February 3, Evercore ISI analyst Michael Montani reduced the firm’s price target to $160 from $165 while maintaining an In Line rating, reflecting adjustments within its Retail Broadlines & Hardlines coverage universe. During the company’s third-quarter 20 ...

We recently published an article titled 12 Best Retail Stocks to Buy According to Analysts. On February 17, Dollar General Corporation (NYSE:DG) saw Guggenheim raise its price target to $165 from $140 while maintaining a Buy rating, citing an acceleration in top-line momentum that may signal the early stages of a sustained turnaround rather than a short-term margin recovery driven solely by shrink improvement. On February 6, UBS also raised its price target to $168 from $143 and maintained a Buy rating. ...

AI jitters are turning discount chains and shampoo makers into the stock market's hottest trade — and that's risky - MarketWatch## The Tell# AI jitters are turning discount chains and shampoo makers into the stock market's hottest trade — and that's risky## Consumer staples, long seen as a safety play when tech stocks sell off, are now among the riskier bets on Wall StreetPublished: Feb. 24, 2026 at 2:42 p.m. ETShareResize---Listen(5 min)The bubble may have shifted from artificial intelligence to soap. Phot ...

Time now for Options Corner. Joining us now to take a deeper look at the chart is Rick Dukat, lead market technician for the Schwab network. All right, Rick, take us through the trends that you notice on this chart for TJX.>> Yeah, TJX not too shabby at all of a year here. Up uh almost 30% during the past 52 weeks. Compare that to the S&P 14% and its consumer discretionary sector only 5.7%.But really when you actually look at some of the other names in this discount retail space, uh TJX is actually kind of ...

Core Insights - The article highlights that Walmart is experiencing growth among higher-income shoppers, particularly those earning over $100,000, while lower-income households are struggling with rising costs [2][5]. Economic Context - The current economic situation is described as a K-shaped economy, where wealthier individuals benefit from stock market gains and higher wages, leading to increased consumer spending [2]. - Lower-income households, however, are facing challenges as their earnings do not keep pace with rising costs of essentials like food, housing, and childcare [3]. Labor Market and Inflation - Recent labor market data indicates minimal job growth in 2025, raising concerns about future employment trends [4]. - Inflation rates have shown a 2.4% increase compared to the previous year, surpassing the Federal Reserve's target but slowing down compared to earlier months [4]. Retail Sector Trends - Walmart is viewed as a bellwether for the U.S. economy, with executives noting a hiring recession and lower consumer sentiment as factors for caution [5]. - Other retailers, such as Dollar Tree and Aldi, are also seeing an influx of higher-income shoppers, indicating a shift in consumer demographics [6]. Tariff Impact - Price increases on goods have been attributed to tariffs imposed by the Trump administration, with consumers and businesses bearing nearly 90% of the costs [7]. - Walmart's CFO stated that tariff-driven inflation may have peaked, contrasting with Amazon's CEO's comments about ongoing price impacts from tariffs [8]. Financial Performance - Walmart reported a 4.6% increase in same-store sales for its U.S. business for the quarter ending January 31, exceeding analyst expectations, although its profit forecast fell short of Wall Street estimates [8]. - The company recently achieved a market valuation of $1 trillion, becoming the first traditional retailer to do so, but lost its title as the largest global company by revenue to Amazon [9]. Technological Advancements - Walmart is positioning itself as a tech-forward competitor to Amazon, having switched to the Nasdaq and investing in artificial intelligence to reduce costs and improve efficiency [10]. - The company aims to leverage technology to enhance customer solutions and streamline operations while maintaining customer trust [11].

Core Insights - The SPDR S&P Retail ETF (XRT) has shown an 11.05% return over the past year, but its performance has slowed with only a 2.47% increase year-to-date and a 3.34% decline in the past month, indicating uncertainty in consumer spending [1] Retail Performance - Walmart (WMT) exceeded revenue estimates by $4.33 billion, driven by a 27% surge in eCommerce sales, resulting in a 15.65% stock increase year-to-date [1] - TJX Companies reported a 5% rise in comparable sales and a 7.49% increase in total revenue, benefiting from consumers shifting towards value retailers [1] - Dollar General (DG) achieved a 37.6% EPS beat and 2.5% same-store sales growth, reflecting the trend of value-seeking consumer behavior [1] - Target (TGT) experienced an 18.91% decline in operating income, struggling to maintain competitiveness without a clear value proposition [1] Consumer Spending Trends - The performance of XRT is closely tied to U.S. consumer spending, with December 2025 retail sales reported at $735 billion, flat month-over-month but up 3.3% year-over-year [1] - A decline in monthly growth below 2% or consecutive negative months could exert downward pressure on XRT, compressing margins across its holdings [1] - The University of Michigan Consumer Sentiment Index is at 52.9, indicating recessionary territory, with sustained readings below 50 signaling potential spending declines [1] Equal-Weight Methodology - XRT's equal-weight structure allows smaller retailers to have the same influence as larger ones, which can lead to significant performance shifts during quarterly rebalancing events [1] - Monitoring State Street's monthly holdings files and quarterly rebalance announcements is crucial for understanding potential changes in exposure to discount versus full-price retail [1]

Core Insights - Dollar Tree is strategically opening new stores in affluent areas to attract higher-income customers who tend to spend more per visit [1][6] - The percentage of new Dollar Tree stores in high-income ZIP codes has increased to 19% over the last six years, while those in low-income areas have decreased to 14% [2] - Higher-income households are becoming a significant driver of consumer spending, prompting Dollar Tree to adapt its strategy to appeal to these shoppers [3][10] Store Location Strategy - 49% of new Dollar Tree stores opened in the last six years are in wealthier parts of metro areas, up from 41% in the previous six years [1] - The share of new stores in ZIP codes with significantly higher incomes rose from 16% to 19% in the same timeframe [2] - Conversely, the share of stores opened in lower-income ZIP codes fell from 20% to 14% [2] Customer Demographics - In the last quarter, 60% of new Dollar Tree customers had annual incomes of at least six figures, with 30% being middle-income households earning between $60,000 and $100,000 [6] - Higher-income customers spend an average of $1 more per visit compared to lower-income customers, and an additional visit per year from these customers could increase annual sales by $1 billion [6] Market Trends - Economic downturns typically boost business for dollar stores, but the current strategy focuses on attracting higher-income shoppers who are making more deliberate spending choices [3][7] - The shift in consumer shopping preferences, driven by inflation, has led more households to seek out discount retailers like Dollar Tree [11]

Core Viewpoint - Walmart has joined the $1 trillion market club, becoming the only Dividend King in this exclusive group, showcasing its strength as a leading retail chain that continues to improve [1][2]. Group 1: Business Model and Growth - Walmart's recent growth is attributed to its expansion into a wider clientele, supported by a strong e-commerce platform, with e-commerce sales increasing by 27% year over year in the third quarter of fiscal 2026 [5]. - The company has a significant advantage over competitors like Amazon due to its extensive store network of 4,700 locations, which serve as distribution hubs, allowing for quick order fulfillment and appealing to customers who prefer store pickup [6]. - Walmart is actively upgrading its merchandise to attract a more affluent customer base, including the launch of upscale health-branded products, which are marketed through its website to reach customers who may not visit physical stores [7]. Group 2: Market Position and Resilience - Walmart's vast presence means that 90% of the U.S. population lives within 10 miles of a store, and with over 10,800 stores globally, the company has significant growth potential in various markets [8]. - The company has demonstrated resilience against economic pressures, particularly in response to tariffs, leveraging its cost-cutting capabilities and strong supplier relationships, which is crucial as it operates in the essentials market [9].