Core Insights - The article discusses the mixed macroeconomic environment as Black Friday approaches, highlighting a concentrated investment strategy in retail and technology sectors due to a "K-shaped" recovery [1][2]. Retail Sector Analysis - Louis Navellier recommends a focused investment in two major retailers, Costco Wholesale Corp. and Walmart Inc., citing their strong same-store sales growth amidst consumer spending constraints [3]. - The "trade-down" effect is emphasized, indicating that consumers are prioritizing value, which benefits discount retailers over luxury brands [3]. Holiday Spending Outlook - Despite predictions of record holiday revenue, the retail sector is viewed as risky due to consumer budget tightening, leading to a decline in overall shopping activity [4][9]. AI Sector Insights - The AI trade is evolving, with a shift in leadership towards companies that apply AI technology and those that build supporting infrastructure, rather than just hardware manufacturers [4][5]. - Specific companies identified as leaders in the AI application space include Applovin Corp. and Palantir Technologies Inc., while data center infrastructure firms like Vertiv Holdings Co. and Emcor Group Inc. are also highlighted [8]. Economic Context - Navellier argues that the U.S. is currently benefiting from China's economic slowdown, which is leading to imported deflation and alleviating pricing pressures from tariffs [6]. - The housing sector is facing challenges, with high ownership costs causing consumers to defer home improvement spending, negatively impacting companies like Home Depot and Lowe's [7][9]. Investment Strategy - The article concludes with a clear message for investors to avoid broad market indices and focus on concentrated opportunities in AI appliers, data center builders, and the two recommended retailers [10].

Core Viewpoint - Five Below (FIVE) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ending October 2025, with the actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The consensus estimate for Five Below's quarterly earnings is $0.22 per share, reflecting a year-over-year decrease of 47.6%, while revenues are projected to reach $969.89 million, representing a 15% increase from the previous year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised 1.81% higher, indicating a collective reassessment by analysts regarding the company's earnings prospects [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows that Five Below has a positive Earnings ESP of +74.71%, suggesting a strong likelihood of beating the consensus EPS estimate, supported by a Zacks Rank of 2 [11]. Historical Performance - In the last reported quarter, Five Below exceeded the expected earnings of $0.61 per share by delivering $0.81, resulting in a surprise of +32.79%. The company has beaten consensus EPS estimates in all of the last four quarters [12][13]. Conclusion - While Five Below is positioned as a compelling candidate for an earnings beat, it is essential to consider other factors that may influence stock performance beyond just earnings results [14][16].

Group 1 - Wall Street anticipates continued investment in AI, with HSBC projecting the S&P 500 to reach 7,500 by December 2026, indicating confidence in the AI-driven market rally [2][3] - HSBC's forecast suggests a potential 12% gain from current levels, reminiscent of the late 1990s tech boom, driven by an ongoing AI investment boom [3] - The firm recommends broadening the AI trade, suggesting that market rallies can persist despite concerns about a potential AI bubble [3] Group 2 - HSBC expects 2026 to be characterized by a "two-speed economy," highlighting disparities in consumer spending and confidence levels [6][10] - High earners and those with better credit scores are more optimistic and spending more, while low-income earners are more cautious and spending less [7][10] - The current earnings season supports the notion of a K-shaped economy, with premium-focused companies like Delta and Walmart performing well amid consumer pressure [9][10]

Washington-based Costco Wholesale Corporation (COST) has carved out a dominant position in global retail by selling high volumes of food and general merchandise at deeply discounted prices through its exclusive membership model. Supported by a growing network of warehouses across major international regions, the company continues to widen its global footprint. Alongside its physical expansion, Costco’s e-commerce platforms in many of these markets further strengthen its reach and accessibility. With a mar ...

Core Insights - The article discusses consumer behavior trends during economic downturns, highlighting a shift towards more budget-friendly options, as noted by the CEOs of McDonald's and Dollar General [1][2][3] Consumer Behavior Trends - There is a noticeable bifurcation in the consumer base in the U.S., with lower-income consumers experiencing a decline in quick-service restaurant (QSR) traffic by nearly double digits, while higher-income consumers show strong traffic growth of nearly double digits [2] - Dollar General has observed increased trade-in activity from both middle- and higher-income customers, indicating a shift in spending patterns towards discretionary categories [3][4] Company Performance - Both McDonald's and Dollar General have successfully attracted new customers despite losing some core customers [5] - McDonald's reported a 2.4% increase in U.S. same-store sales for the third quarter, while Dollar General's comparable store sales rose by 1.2% year over year in its most recent quarter [9] Dollar Tree's Challenges and Strategies - Dollar Tree has faced challenges, including the closure of over 600 Family Dollar stores and plans to close approximately 1,000 locations [6][7] - The company has reached an agreement to sell the Family Dollar brand for just over $1 billion, marking a significant milestone in its transformation journey [8][9] Dollar Tree's Financial Performance - Dollar Tree reported a 12.3% increase in net sales to $4.6 billion, driven by a 6.5% growth in comparable sales, indicating a balanced growth between traffic and ticket [14] - The company has implemented a multi-price strategy, diversifying its product range with items priced between $1.50 and $7, which aims to enhance the shopping experience and attract more customers [18] Analyst Perspectives - Analysts have expressed optimism regarding Dollar Tree's performance post-Family Dollar, suggesting that the chain may benefit from a more streamlined focus [19]

Core Insights - Tech and AI stocks faced significant declines this week, with Nvidia and Palantir experiencing notable drops, while the Nasdaq-100 had one of its worst performances since April [2] - In contrast, Ross Stores achieved record highs, exceeding market expectations and announcing aggressive expansion plans [3][4] Company Performance - Ross Stores reported third-quarter earnings of $1.58 per share, surpassing analyst expectations of $1.42, reflecting a 7% year-over-year increase [4][7] - Sales for Ross Stores increased by 10% to $5.6 billion, with same-store sales rising by 7% [4][7] - The company experienced a 9.4% increase in foot traffic during the third quarter, indicating strong consumer interest [5][7] Market Positioning - CEO Jim Conroy highlighted a successful back-to-school season and strong sales trends, contributing to an operating margin of 11.6%, which exceeded expectations [5] - Ross Stores' performance stands in stark contrast to Target, which saw a 2.7% decline in store visits and its stock reaching a six-year low, as consumers perceive Target as a more "luxury" discount option compared to Ross [6]

Core Insights - Major U.S. equities indexes experienced gains, driven by comments from a Federal Reserve official suggesting a potential interest rate cut in December [1] Company Performance - Ross Stores (ROST) emerged as the best-performing stock in the S&P 500, with shares increasing by 7% after surpassing earnings and revenue estimates, and raising its outlook due to strong customer demand [2] - Gap Inc. saw its shares rise by 8% following better-than-expected results and an optimistic guidance, attributed to robust demand across its brands [2] - Intuit (INTU) reported a 6% surge in shares, benefiting from strong quarterly results and increased demand for its artificial intelligence tools [3] - Veeva Systems (VEEV) experienced a decline of over 10% as it warned of reduced usage of its Vault CRM system by biopharmaceutical firms [4] Market Trends - Oil futures declined while gold prices increased, indicating a shift in commodity markets [4] - The yield on the 10-year Treasury note decreased to 4.08%, reflecting changes in investor sentiment [4] - The U.S. dollar showed mixed performance against major currencies, gaining against the euro but losing ground to the pound and yen [4]

Ross Stores, Inc. (NASDAQ:ROST) posted better-than-expected third-quarter earnings after Thursday’s closing bell.Ross Stores reported quarterly earnings of $1.58 per share, which beat the analyst estimate of $1.41. Quarterly revenue came in at $5.6 billion, which beat the analyst consensus estimate of $5.42 billion."We are pleased with our third-quarter sales results, which accelerated from the prior quarter. Our merchandise assortment of compelling brand name values resonated with shoppers, and our new mar ...

Core Insights - Ross Stores, Inc. reported third-quarter earnings of $1.58 per share, exceeding the analyst estimate of $1.41, with quarterly revenue of $5.6 billion, surpassing the consensus estimate of $5.42 billion [1][2] Group 1: Earnings Performance - The company experienced an acceleration in sales compared to the prior quarter, driven by a compelling merchandise assortment and a new marketing campaign that increased customer engagement [2] - Ross Stores raised its fourth-quarter GAAP EPS guidance to a range of $1.77 to $1.85, above the analyst estimate of $1.79, and increased its fiscal 2025 GAAP EPS guidance to between $6.38 and $6.46, compared to the $6.23 analyst estimate [2] Group 2: Stock Performance - Following the earnings announcement, Ross Stores shares rose by 7.2% to $172.03 [3] Group 3: Analyst Ratings and Price Targets - Telsey Advisory Group maintained a Market Perform rating and raised the price target from $160 to $175 [5] - B of A Securities maintained a Buy rating and increased the price target from $175 to $200 [5] - Baird maintained an Outperform rating and raised the price target from $170 to $182 [5] - Evercore ISI Group maintained an Outperform rating and increased the price target from $175 to $195 [5] - JP Morgan maintained an Overweight rating and raised the price target from $188 to $200 [5] - UBS maintained a Neutral rating and increased the price target from $163 to $169 [5] - Bernstein maintained a Market Perform rating and raised the price target from $147 to $159 [5] - Barclays maintained an Overweight rating and increased the price target from $164 to $183 [5]

INVESTING RESOURCES Take a Trial Today Get instant access to exclusive stock lists, expert market analysis and powerful tools with 2 months of IBD Digital for only $20! IBD Videos BREAKING: Stocks Bounce But Tumble For Week Shares of Ross Stores (ROST) rallied to an all-time high Friday, rising past a buy point, after the retailer beat earnings and sales expectations and raised its fiscal-year outlook amid momentum in the discount chain. The company late Thursday reported earnings of $1.58 a share, a year-o ...