We recently published an article titled 12 Best Retail Stocks to Buy According to Analysts. On February 17, Evercore ISI raised its price target on Target Corporation (NYSE:TGT) to $105 from $103 while maintaining an In Line rating as part of a fourth-quarter earnings preview. On February 1, 2026, Target Corporation (NYSE:TGT) implemented a leadership transition under which Michael J. Fiddelke assumed the role of Chief Executive Officer and joined the board of directors. His compensation package include ...

Analysts remained bullish, highlighting Walmart’s expanding ecosystem, AI investments and higher-margin alternative businesses as key long-term growth drivers.Earnings SnapshotThe company reported fourth-quarter adjusted earnings per share of 74 cents, beating the Street view of 73 cents.Sales of $190.70 billion rose 5.6% year over year (up 4.9% in constant currency), topping the analyst consensus estimate of $190.43 billion.Here are the key analyst insights:Telsey Advisory Group analyst Joseph Feldman reit ...

Core Insights - Target's stock has increased by 33% since October, reaching $118.98, raising its market cap to approximately $53.9 billion, prompting questions about the viability of a buyout [1] Group 1: Financial Performance - Target's revenue declined by 1.43% year-over-year in Q3, while operating income fell by 18.91% to $948 million [1] - Management has guided for a low-single digit sales decline in Q4, indicating that the turnaround is still in its early stages [1] - Digital comparable sales increased by 2.4%, and same-day delivery surged more than 35% [1] Group 2: Strategic Initiatives - Under new CEO Michael Fiddelke, Target is implementing a three-pronged strategy focusing on merchandising authority, enhancing the shopping experience, and leveraging AI technology for quicker decision-making [1] - The FUN 101 transformation has resulted in nearly 10% comparable growth in toys during Q3, and the company plans a $5 billion capital expenditure for 2026, marking the largest store transformation investment in a decade [1] Group 3: Market Sentiment and Buyout Potential - Analyst sentiment is shifting, with a consensus price target of $103.81, reflecting concerns about the pace of operational recovery [1] - Despite the stock rally, the structural case for a take-private transaction remains, as Target's market cap is within reach of private equity firms, trading at 14x trailing earnings [1] - Prediction markets show no active contracts related to a TGT buyout, indicating that investors are not currently pricing in M&A activity [1]

Core Insights - Walmart reported Q4 financials that exceeded market expectations, with e-commerce sales reaching a record 23% of total sales [1] - Despite conservative guidance for the upcoming year due to pressures on lower-income consumers, options traders are optimistic about Walmart's stock performance in 2026 [1][2] - The stock has already increased approximately 12% since the beginning of the year [2] Financial Performance - Walmart's Q4 results included a new $30 billion stock buyback plan, indicating confidence in long-term growth and shareholder value [6] - The company also boasts a 0.74% dividend yield, enhancing its attractiveness for investors in 2026 [6] Market Sentiment - Derivatives data suggests a bullish outlook for Walmart, with options pricing indicating a potential stock price of $139 by mid-May [5] - Technical indicators show that Walmart shares are above key moving averages (50-day, 100-day, 200-day), suggesting strong bullish control [5] Expert Opinions - Industry expert Jan Kniffen maintains a "permabull" stance on Walmart, citing a strong Q4 and a 37% year-on-year growth in its high-margin advertising business [7] - Kniffen emphasizes Walmart's successful transition to a high-speed distribution network, leveraging its physical footprint for e-commerce [7] - He also notes Walmart's ability to diversify its supply chain and maintain profitability amid tariff uncertainties [8] Analyst Ratings - Wall Street analysts remain bullish on Walmart following its Q4 earnings report, reinforcing positive sentiment in the market [9]

Core Insights - Walmart's earnings report indicates strong momentum, with a solid holiday quarter and positive outlook for 2026 [2][3] - Amazon has surpassed Walmart in annual revenue for the first time, marking a significant shift in the retail landscape [22][24] - The consumer market is bifurcated, with higher-income households benefiting from wealth effects while lower to middle-income households are more price-sensitive [5][9] Walmart Performance - All three business segments of Walmart—Walmart US, Walmart International, and Sam's Club—are performing well [3] - Walmart typically provides conservative guidance at the beginning of the year, but historically raises its outlook as the year progresses [3][4] - The company is attracting both higher-income and lower-income consumers, indicating broad appeal across demographics [6][10] Consumer Behavior - The consumer landscape shows a divide, with higher-income households spending more while lower-income households are more cautious [5][9] - Walmart is successfully catering to both demographics, enhancing its market position [6][10] AI Integration - Walmart is leveraging AI for both customer-facing and backend operations, which could enhance product discoverability and improve supply chain efficiency [11][12] - The integration of AI is expected to benefit Walmart's top line and margins, positioning it favorably in the retail sector [11][13] Competitive Landscape - Amazon's growth, particularly in its cloud business, presents a different competitive dynamic compared to Walmart [22][24] - Specialty retailers and smaller retailers are at greater risk due to cost pressures and competition from larger retailers like Walmart and Amazon [17][19] Tariff and Inflation Outlook - Tariff pressures are expected to lessen in 2026 compared to 2025, which could positively impact discretionary retailers [20][21] - Inflation remains a concern for retail margins, with a preference for consumer discretionary over staples in the current market [31] Stock Recommendations - Top retail stock picks for 2026 include Amazon, Costco, and Walmart, with a strong buy rating on Amazon [28] - Target is seen as a higher-risk play but still offers value relative to peers [34]

Walmart is getting packages to shoppers’ doors at a frenzied pace. According to new CEO John Furner, “a large number” of e-commerce orders are now delivered in less than 30 minutes. More from Sourcing Journal “We’re averaging under an hour in our Express Delivery when customers choose that,” said Furner in a fourth-quarter earnings call on Thursday. Furner had noted in November that sub-one-hour delivery was Walmart’s fastest growing channel across the delivery options it offers. Walmart’s Express Deli ...

Core Insights - Walmart reported strong fourth-quarter results, with fiscal revenue reaching $190.7 billion, a 5.6% increase year-over-year, driven by a 4.6% rise in U.S. comparable sales [1] - Online sales reached a record share of total sales, accounting for 23% of total sales in the U.S., with a 27% increase in e-commerce sales [5] - The company gained market share across various income tiers, indicating that its pricing and convenience strategies are appealing to a broader customer base [7] Financial Performance - Adjusted operating income grew by approximately 10%, outpacing the 5% growth in overall sales, driven by higher-margin businesses such as advertising and membership programs [7] - Advertising revenue increased by 37% globally, with a 41% growth for Walmart Connect in the U.S., while membership fee income rose by over 15% [7] - Inventory growth remained below sales growth, reflecting effective supply chain management [9] Future Outlook - Walmart anticipates sales growth of 3.5% to 4.5% for the current fiscal year, with operating profit expected to increase by 6% to 8% [9] - The results indicate that U.S. consumers are resilient and focused on value, while Walmart's investments in digital services and faster delivery are enhancing its competitive position [10]

Core Insights - Walmart Inc. is enhancing its competitive position by focusing on value, convenience, and disciplined execution amid uncertain retail conditions [1] - Upper and middle-income households are driving customer spending, while lower-income shoppers are experiencing increased financial pressure [1] Pricing Strategy - Price leadership is crucial, with approximately 7,400 active rollbacks in Walmart U.S., over half of which are in grocery [2] - More than 2,000 temporary rollbacks have become permanent price reductions since the fiscal year began [2] - Like-for-like inflation in Walmart U.S. was 1.3% in Q3 of fiscal 2026, reflecting efforts to manage costs while maintaining affordability [2] Sales Performance - Comparable sales in Walmart U.S., excluding fuel, increased by 4.5%, driven by a 1.8% rise in transactions and a 2.7% increase in the average ticket [3] - The company gained market share in grocery, health and wellness, and general merchandise, indicating strong customer engagement [3] E-commerce Growth - Global e-commerce sales grew by 27% in Q3, with Walmart U.S. up 28%, marking the seventh consecutive quarter of over 20% growth in this segment [4] - Approximately 35% of store-fulfilled U.S. orders were delivered in under three hours, with expedited channel sales rising nearly 70% [4] Inventory Management - Overall inventory increased by 3.2% to $65.4 billion, while Walmart U.S. inventory rose by 2.6%, about half the rate of sales growth [5] - These inventory management practices highlight Walmart's ability to balance value, growth, and operational discipline [5] Market Position - Walmart's shares have increased by 28.7% over the past year, outperforming the industry growth of 27.9%, while competitors Costco and Target saw declines of 5% and 9.5%, respectively [6] - Walmart's forward 12-month price-to-earnings ratio is 45.33, higher than the industry's 41.2, and it trades at a premium to Target but at a discount to Costco [9] Financial Outlook - The Zacks Consensus Estimate for Walmart's current fiscal-year sales and earnings per share indicates year-over-year growth of 4.5% and 5.2%, respectively [10] - Projections for the next fiscal year suggest increases of 4.6% in sales and 11.5% in EPS [10]

Core Insights - The company has made significant investments in automation, AI, and digital advertising, which facilitated its transition from the NYSE to the Nasdaq in December last year [1][7] - Walmart has achieved a market capitalization of $1 trillion, marking it as the first major brick-and-mortar retailer to reach this valuation tier typically associated with tech companies [4][8] - The stock has shown strong performance, with a 27.5% increase over the past 52 weeks and a 17.8% rise in 2026 alone, outperforming the S&P 500 Index [8][9] Company Overview - Walmart operates as a tech-enabled omnichannel retailer, serving approximately 270 million customers weekly across over 10,750 stores and various online platforms in 19 countries [3][4] - The company has a long history of steady growth since its public listing in 1972, driven by continuous improvements in retail operations and digital commerce capabilities [2] Financial Performance - In Q3 of fiscal 2026, Walmart reported net sales of $179.5 billion, a 5.8% year-over-year increase, surpassing Wall Street's expectations [11] - Global eCommerce sales surged by 27%, while the global advertising business grew by 53%, indicating strong operational momentum [12] - The company’s adjusted earnings per share rose by 7% year-over-year to $0.62, exceeding the consensus estimate [13] Balance Sheet and Cash Flow - As of October 31, 2025, Walmart held $10.6 billion in cash and cash equivalents, with total debt at $53.1 billion [14] - Operating cash flow increased to $27.5 billion, up $4.5 billion from the previous year, and free cash flow rose to $8.8 billion [14] Future Outlook - Management has raised its fiscal 2026 outlook, expecting net sales growth of 4.8% to 5.1% and adjusted operating income growth of 4.8% to 5.5% [15] - Adjusted EPS is projected to be between $2.58 and $2.63, indicating continued momentum [15] Analyst Sentiment - Walmart stock holds a consensus "Strong Buy" rating from Wall Street, with 29 out of 38 analysts recommending a "Strong Buy" [16] - The average price target is $125.41, with a Street-high target of $147, suggesting further potential upside of about 12.1% [16]

Core Insights - Target Corporation (TGT) is leveraging AI-powered inventory planning to enhance in-stock performance and improve customer experience amid sales pressures [1][11] - The company is modernizing its inventory management technology using machine learning to optimize supply chain efficiency [2] - Early results indicate significant improvements in inventory availability for key items, with a year-over-year increase of over 150 basis points [3][11] - AI tools are providing real-time consumer insights to help merchants make informed buying decisions, aiming to reduce stock mismatches [4] - Management believes that consistent improvements in inventory could rebuild customer trust and create a competitive advantage for long-term growth [5] Company Developments - Target's stock has increased by 29% over the past three months, outperforming the industry growth of 12.1% [10] - The forward 12-month price-to-earnings ratio for TGT is 14.88, significantly lower than the industry average of 33.35 [13] - Earnings estimates for fiscal 2025 indicate a decline of 17.6%, while fiscal 2026 shows a growth of 6.2%, with recent adjustments being minimal [14] Competitive Landscape - Walmart Inc. (WMT) is enhancing its AI initiatives to provide personalized experiences and improve software development, with over 40% of new code being AI-generated or assisted [6] - Best Buy Co., Inc. (BBY) is advancing its AI-driven digital transformation, achieving a 17% reduction in customer contacts while improving satisfaction scores [8]