Shift in the consumer is still in Walmart's favor, says Telsey's Joe Feldman

Group 1: Retail Earnings Outlook - Retail earnings are set to begin next week with Home Depot, Lowe's, Target, and Walmart reporting [1] - Walmart is highlighted as a key company to watch due to its high valuation compared to historical data, sector averages, and the S&P 500 [2][3] Group 2: Walmart's Transformation - Walmart has undergone significant transformation under former CEO Doug McMillan, focusing on digital transformation and technology integration [3][4] - The company has modernized its supply chain and incorporated AI to enhance operational efficiency and customer targeting [4] Group 3: Consumer Trends - The consumer market remains challenging, with pronounced paycheck cycles affecting spending, but Walmart is successfully attracting more affluent consumers [5][11] - Despite challenges, Walmart is positioned as a cost-effective option for consumers seeking value [12] Group 4: Target's Position - Target's current setup is viewed as neutral, with low expectations for a strong quarter, but there are signs of improvement in store operations ahead of the holiday season [6][8] - The new CEO of Target, Mike Fideli, is expected to bring a fresh perspective and has already made aggressive moves to improve operations [9][10]