These 3 Defensive Retail Stocks Are Outpacing the Market

Economic Overview - Economic data is crucial for investors, especially when the S&P 500 is near all-time highs, as it indicates whether the economy can support current market valuations [1] - Recent retail sales data shows a shift from consumer discretionary spending to consumer staples, indicating a more defensive consumer approach and a lack of confidence [2] Company Insights - Walmart Inc. has seen significant institutional investment, with up to $15 billion flowing into its stock over the past quarter, reflecting a broader trend towards defensive stocks [5] - Analysts forecast Walmart's earnings per share (EPS) to rise to $0.75 over the next 12 months, a nearly 30% increase from the current $0.58, suggesting potential for stock price growth [6] - Citigroup maintains a Buy rating for Walmart, projecting a stock price of up to $120, indicating a potential upside of 15% from current levels [7] Dollar Tree Analysis - Dollar Tree's stock forecast suggests a 12-month price target of $85.58, with a potential upside of 12.18% based on analyst ratings [8][9] - Institutional buyers have purchased approximately $1.6 billion in Dollar Tree stock, indicating a favorable sentiment towards defensive names following retail sales data [10] - Guggenheim analysts rate Dollar Tree as a Buy, with a fair value target of $100 per share, representing a 40% upside from current trading levels [12] Dollar General Outlook - Dollar General's stock forecast indicates a 12-month price target of $96.77, with a potential upside of 27.06% based on analyst ratings [13] - The company is expected to see EPS growth of nearly 100% to $1.74 in the third quarter of 2025, suggesting significant upside potential [14] - Barclays has an Overweight rating on Dollar General, valuing it at up to $100 per share, which implies a potential upside of 38% from current prices [15]