Core Viewpoint - The outlook for the retail sector heading into the holiday season is bleak, primarily due to rising inflation impacting consumer health, especially among low-income consumers [1][3]. Retail Earnings Outlook - Major retailers such as Walmart, Home Depot, and Target are set to report earnings, with cautious sentiment prevailing in the market [1][4]. - Five Below is identified as the most likely retailer to exceed consensus expectations in its upcoming earnings report, benefiting from macro tailwinds and company-specific improvements [5]. - Target is expected to miss expectations due to ongoing struggles with consumer perception, being viewed as a "nice to have" rather than a necessity [6]. - Walmart is anticipated to report inline results, but the current stock valuation suggests limited upside potential [6][7]. Home Improvement Sector - Home Depot and Lowe's are experiencing muted performance, with expectations for uninspiring results in their upcoming reports [9]. - The performance of these companies is largely driven by macroeconomic factors, particularly interest rates and housing turnover, which will influence home improvement demand [9]. Costco's Position - Costco's earnings report is scheduled for the second week of December, with expectations for better performance due to its focus on middle to high-income consumers, who are faring better than low-income consumers [10].

Thanksgiving is the traditional kickoff to the holiday shopping season, but this year many consumers began making their holiday gift purchases long before Halloween. https://t.co/JExG0hkedN ...

Greetings. I'm Sean Puit, Zach's equity strategist, and today I'm going to be discussing stocks to watch for the first trillion dollar holiday shopping season. So, with Black Friday approaching at the end of the month, savvy investors may be eyeing the retail sector for the possibility of lucrative returns.And to that point, the day after Thanksgiving will officially kick off what is projected to be the first holiday shopping season in US history to surpass 1 trillion in retail sales. And according to the N ...

Core Insights - The upcoming holiday shopping season in the U.S. is projected to exceed $1 trillion in retail sales for the first time in history, with consumer spending expected to reach between $1.01 trillion and $1.02 trillion during November and December 2025, marking a 3.7%-4.2% increase from last year's $976 billion [1][2]. Retail Leaders - Amazon (AMZN) and Walmart (WMT) are highlighted as leading retailers with robust business models capable of capitalizing on the holiday shopping season while generating multiple revenue streams [3]. - Amazon has transformed into a platform-based ecosystem, benefiting from its AWS cloud services and subscription services like Prime Video, which are enhanced by advertising revenue [4]. - Amazon's e-commerce operations have improved significantly through the deployment of over 1 million robots, enhancing productivity in its fulfillment network [5]. - Walmart has successfully transitioned from a traditional brick-and-mortar model to a significant online presence, achieving annual digital sales exceeding $100 billion, supported by its grocery niche and low-cost pharmacy services [6]. Stock Performance - Both Amazon and Walmart are rated with a Zacks Rank 2 (Buy) and are expected to achieve new sales peaks in Q4, following last year's quarterly sales of $187.79 billion and $169.59 billion, respectively [7]. Apparel Sector Insights - The apparel sector has faced challenges due to higher tariffs, with Crocs (CROX) identified as a potential rebound candidate, currently trading at a low forward earnings multiple of 6X [9]. - Crocs' EPS is projected to dip 8% this year but is expected to rebound by 4% in FY26 to $12.60, with recent estimates showing a 5% increase over the last 30 days [10]. Additional Retail Stocks and ETFs - Costco (COST) is noted as a retail leader with a Zacks Rank 3 (Hold), alongside other apparel stocks like Lululemon (LULU), Nike (NKE), and Under Armour (UAA) that may benefit from the anticipated record holiday shopping season [11]. - The Consumer Discretionary Select Sector (XLY) ETF is recommended for exposure to top retail stocks, including Amazon, Nike, and Lululemon, and currently holds a Zacks Rank 3 (Hold) [12].

Thanksgiving is the traditional kickoff to the holiday shopping season, but this year many consumers began making their holiday gift purchases long before Halloween. https://t.co/JExG0hkedN ...

Key Takeaways Costco's U.S. comparable sales rose 5.1% in September, reflecting solid traffic and ticket growth.New shopping hours boosted weekly U.S. sales by about 1% since their late-June rollout.Costco enters the holiday season strong as members seek quality, value and convenience.Costco Wholesale Corporation’s (COST) U.S. comparable sales rose 5.1% in September, indicating consumer strength and a preference for value heading into the holiday season. The performance suggested solid traffic growth and a ...

[Music] Hello and welcome to Ask for a Trend. I'm Josh Lipton and for the next half hour, we are breaking down the trends of today that'll move stocks tomorrow. There's a lot to keep track of, so we're focusing on what you need to know to get ahead of the curve. Here's some of the trends we're going to be diving into.Stocks closed mixed Monday, but the Nasdaq hits an all-time high on a tech boost and on the multi-year deal between a chipmaker AMD and Open AI. Investors remain optimistic about the buildout o ...