Core Viewpoint - TJX has been trending in stock searches, indicating potential interest in its future performance due to recent earnings estimates and revenue growth projections [1][2]. Earnings Estimate Revisions - TJX is expected to report earnings of $1.21 per share for the current quarter, reflecting a year-over-year increase of +6.1% [5]. - The consensus earnings estimate for the current fiscal year is $4.64, indicating a year-over-year change of +8.9%, with a recent upward revision of +1.4% [5]. - For the next fiscal year, the earnings estimate is $5.04, representing an increase of +8.6% from the previous year, with a slight upward revision of +0.1% [6]. - The Zacks Rank for TJX is 2 (Buy), suggesting a positive outlook based on earnings estimate revisions [7]. Projected Revenue Growth - The consensus sales estimate for the current quarter is $14.82 billion, indicating a year-over-year increase of +5.4% [11]. - For the current fiscal year, the revenue estimate is $60.31 billion, reflecting a +7% change, while the next fiscal year's estimate is $62.76 billion, indicating a +4.1% change [11]. Last Reported Results and Surprise History - In the last reported quarter, TJX generated revenues of $14.4 billion, a year-over-year increase of +6.9%, and an EPS of $1.1 compared to $0.96 a year ago [12]. - The reported revenues exceeded the Zacks Consensus Estimate of $14.07 billion by +2.33%, and the EPS surprised by +8.91% [12]. - TJX has consistently beaten consensus EPS and revenue estimates over the past four quarters [13]. Valuation - TJX's valuation metrics indicate it is trading at a premium compared to its peers, receiving a Zacks Value Style Score of D, suggesting it may be overvalued [17]. Conclusion - The information presented indicates that TJX may outperform the broader market in the near term, supported by its strong earnings estimates and revenue growth [18].

Company Performance - Target's stock increased by 1.74% to $88.86, outperforming the S&P 500's decline of 0.16% in the latest session [1] - Over the past month, Target's shares have decreased by 1.38%, which is better than the Retail-Wholesale sector's loss of 4.08% but worse than the S&P 500's gain of 1.14% [1] Upcoming Earnings - Target is expected to report an EPS of $1.78, reflecting a 3.78% decrease compared to the same quarter last year [2] - Revenue is anticipated to be $25.42 billion, indicating a 0.98% decline from the year-ago quarter [2] Full Year Estimates - For the full year, earnings are projected at $7.42 per share, down 16.25% from the previous year, with revenue expected to be $105.11 billion, a decrease of 1.36% [3] - Recent analyst estimate revisions suggest positive short-term business trends, which can be a favorable sign for the company's outlook [3] Analyst Ratings - The Zacks Rank system, which evaluates estimate revisions, indicates that Target currently holds a Zacks Rank of 3 (Hold) [5] - The Zacks Consensus EPS estimate has decreased by 0.89% in the past month [5] Valuation Metrics - Target's Forward P/E ratio stands at 11.77, which is a discount compared to the industry average of 23.31 [6] - The PEG ratio for Target is 2.54, aligning with the industry average [6] Industry Context - The Retail - Discount Stores industry, part of the Retail-Wholesale sector, has a Zacks Industry Rank of 32, placing it in the top 13% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Group 1 - AutoNation (AN) is a notable stock in the Retail-Wholesale sector, currently outperforming its peers with a year-to-date return of approximately 27.1% compared to the sector average of 5.1% [4] - The Zacks Rank system indicates that AutoNation holds a Zacks Rank of 2 (Buy), reflecting improved analyst sentiment and a stronger earnings outlook, with a 5.2% increase in the consensus estimate for full-year earnings over the past 90 days [3] - AutoNation is part of the Automotive - Retail and Wholesale industry, which includes 10 companies and is currently ranked 18 in the Zacks Industry Rank, outperforming the industry's average gain of 1.2% this year [5] Group 2 - Dollar General (DG) is another strong performer in the Retail-Wholesale sector, with a year-to-date return of 34.4% and a Zacks Rank of 2 (Buy), supported by a 6.4% increase in the consensus EPS estimate over the past three months [4][5] - The Retail - Discount Stores industry, to which Dollar General belongs, is ranked 32 and has seen a gain of 3.5% this year, indicating a relatively weaker performance compared to AutoNation [6]

Core Insights - Target Corporation (TGT) has seen a significant decline in its stock price, dropping 14.5% over the past three months, which is worse than the Zacks Retail - Discount Stores industry's decline of 1.3% and the S&P 500's increase of 9.3% during the same period [1][4]. Performance Overview - TGT's stock closed at $89.10, which is 44.8% lower than its 52-week high of $161.50 reached on October 15, 2024 [7]. - The company has underperformed compared to peers like Walmart, Dollar General, and Costco, with Walmart's shares increasing by 7.8% while Dollar General and Costco saw declines of 12.8% and 2.8%, respectively [5][6]. Financial Challenges - Target's second-quarter fiscal 2025 results were disappointing, with comparable sales down 1.9% year over year and a 3.2% drop in comparable store sales [13][14]. - The gross margin decreased by 100 basis points year over year, and the operating margin fell 120 basis points to 5.2% [15]. - Long-term debt rose to $15.3 billion from $13.7 billion a year earlier, leading to interest expenses of $116 million [19]. Sales and Earnings Outlook - For fiscal 2025, Target anticipates a low-single-digit decline in sales and has reaffirmed its adjusted EPS guidance of $7.00-$9.00, indicating ongoing uncertainty [20]. - The Zacks Consensus Estimate for EPS has been revised downward, with current estimates at $7.46 for the current fiscal year and $8.13 for the next [21][22]. Strategic Initiatives - Target is focusing on digital expansion, with comparable online sales increasing by 4.3% year over year in the second quarter [24]. - The company is leveraging AI to enhance operational efficiency, deploying over 10,000 AI licenses to improve forecasting and replenishment [25]. - New merchandising strategies have led to over 5% category growth in hardlines, marking the strongest performance since 2021 [26]. Operational Efficiency - Target has achieved improved on-shelf availability metrics, reflecting better supply-chain efficiency and inventory management [27]. - Inventory value increased by only 2% year over year, indicating greater efficiency despite tariff pressures [27].

Group 1: Company Overview - Kohl's is one of 196 individual stocks in the Retail-Wholesale sector, currently ranked 8 in the Zacks Sector Rank [2] - Kohl's has a Zacks Rank of 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] Group 2: Performance Metrics - Kohl's has returned 20.4% year-to-date, outperforming the average gain of 8.1% in the Retail-Wholesale group [4] - The Zacks Consensus Estimate for Kohl's full-year earnings has increased by 78.4% over the past quarter, reflecting improved analyst sentiment [3] Group 3: Industry Comparison - Kohl's belongs to the Retail - Regional Department Stores industry, which is currently ranked 3 in the Zacks Industry Rank, with an average gain of 26.7% year-to-date [5] - In contrast, TJX, another outperforming stock in the Retail-Wholesale sector, is part of the Retail - Discount Stores industry, which has gained 1.9% since the beginning of the year [6]

Core Viewpoint - Costco continues to show strong resilience in a challenging economic environment, but its stock performance has been lackluster despite solid financial results [1][3]. Financial Performance - For fiscal Q4 2025, Costco reported revenue of $86.2 billion, slightly exceeding analyst expectations of $86.1 billion [5]. - Earnings per share (EPS) for the same period were $5.87, surpassing Wall Street estimates of $5.80 [5]. - Comparable sales growth for fiscal Q4 was 5.7%, with U.S. growth at 5.1% and international growth at 8.6% [6]. Market Position and Strategy - Costco's warehouse stores remain popular due to their value proposition for bulk buyers, and there is potential for further market expansion, particularly outside North America [2]. - The company is focusing on increasing its private-label Kirkland Signature brand offerings to provide alternatives to goods affected by tariffs, indicating adaptability to current macroeconomic conditions [7]. Stock Performance and Valuation - Despite strong earnings, Costco's stock fell a few percentage points, remaining flat for the year, contrasting with the S&P 500's 13% increase [8][9]. - The stock is currently trading at a price-to-earnings (P/E) multiple of over 50, significantly higher than the average S&P 500 stock's P/E of 25, raising concerns about its inflated valuation [10]. - High valuations and the impact of tariffs on consumer goods have led to investor concerns about potential slowing growth rates, leaving little margin for error in Costco's stock price [11]. Investment Outlook - While Costco may still be a good long-term investment, its current high valuation makes it less attractive compared to other reasonably priced growth stocks [12].

Financial Performance - Costco reported fourth-quarter revenue of $86.16 billion, exceeding analyst estimates of $86.12 billion [1] - The company reported fourth-quarter adjusted earnings of $5.87 per share, surpassing estimates of $5.80 per share [1] Membership Fees - Membership fees reached approximately $1.72 billion, an increase from $1.51 billion in the same quarter last year [2] - The company raised its annual membership fee by $5 in September 2024, marking the first increase since 2017 [2] Stock Performance and Analyst Ratings - Following the earnings announcement, Costco shares fell 2% to $925.03 [2] - JP Morgan analyst Christopher Horvers maintained an Overweight rating but lowered the price target from $1,160 to $1,050 [7] - Bernstein analyst Zhihan Ma maintained an Outperform rating and raised the price target from $1,137 to $1,140 [7] - Truist Securities analyst Scot Ciccarelli maintained a Hold rating and lowered the price target from $1,042 to $1,033 [7]

Core Insights - Costco Wholesale Corporation reported strong financial performance in its fourth-quarter earnings, with earnings per share (EPS) of $5.87, exceeding estimates of $5.80 and showing significant year-over-year growth from $5.15 [2][6] - The company's revenue for the quarter was approximately $86.2 billion, slightly above the estimated $86.01 billion, and a notable increase from $79.7 billion reported a year ago [3][6] - Comparable sales growth was 5.7% overall, with the U.S. growing by 5.1%, Canada by 6.3%, and other international markets by 8.6% [4][6] Financial Metrics - Costco's price-to-earnings (P/E) ratio is about 53.40, and its price-to-sales ratio is 1.56, indicating a strong valuation [5] - The company's debt-to-equity ratio is approximately 0.30, reflecting a relatively low level of debt [5] - A current ratio of around 1.02 suggests a balanced level of current assets to cover liabilities, showcasing financial stability [5] Membership Revenue - Membership fees reached approximately $1.72 billion, up from $1.51 billion last year, indicating strong member retention and growth [4]

Company Performance - Target's stock closed at $87.14, reflecting a decrease of 1.32% from the previous day, underperforming compared to the S&P 500's loss of 0.5% [1] - Over the last month, Target's shares have decreased by 9.85%, while the Retail-Wholesale sector gained 0.66% and the S&P 500 gained 2.74% [1] Financial Forecast - Target is expected to report an EPS of $1.8, indicating a 2.7% decline from the same quarter last year, with revenue forecasted at $25.47 billion, a drop of 0.78% year-over-year [2] - For the entire fiscal year, earnings are projected at $7.49 per share and revenue at $105.16 billion, representing declines of 15.46% and 1.32% respectively from the prior year [3] Analyst Estimates - Recent changes to analyst estimates for Target are important as they reflect the evolving business landscape, with upward revisions indicating positive sentiment towards the company's operations [4] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks Target at 3 (Hold), with a slight decrease of 0.01% in the EPS estimate over the last 30 days [6] Valuation Metrics - Target has a Forward P/E ratio of 11.8, which is a discount compared to the industry average Forward P/E of 22.31 [7] - The company also has a PEG ratio of 2.55, aligning with the average PEG ratio of the Retail - Discount Stores industry [7] Industry Context - The Retail - Discount Stores industry is part of the Retail-Wholesale sector and holds a Zacks Industry Rank of 102, placing it in the top 42% of over 250 industries [8]

TikTok Deal - The US version of TikTok is valued at $14 billion, with American investors taking control of its operations [2][9] - Key investors include Oracle (ORCL), Dell (DELL), Rupert Murdoch, Abu Dhabi's MGX, and Silver Lake, with Oracle expected to oversee the app's security [2][3][9] - President Trump indicated that the US government anticipates generating tax revenue from the TikTok deal, which he claims has China's support despite some resistance [3][4][9] Corporate Earnings - Costco Wholesale Corporation (COST) reported Q4 2025 earnings with an EPS of $5.87, exceeding estimates of $5.82, and revenue of $86.16 billion, slightly above the $86.03 billion estimate [5][9] - Comparable sales for Costco grew by 5.7%, just under the 5.85% estimate, while excluding gas and currency effects, sales grew by 6.4%, beating the 6.21% estimate [5][9] Corporate Restructuring - Starbucks (SBUX) is undergoing significant restructuring, including the closure of several stores, such as its iconic Seattle roastery [6][9] Market Performance - The Dow Jones Industrial Average unofficially closed down 161.84 points (0.35%) at 45,959.44 [7][9] - US Money-Market Fund Assets reached a record $7.31 trillion, indicating a positive economic indicator [7][9]