Core Viewpoint - Dollar Tree reported strong Q2 results but experienced an 8% stock dip due to underwhelming Q3 guidance and profit-taking, despite being viewed as a defensive stock amid macroeconomic challenges [1][2]. Group 1: Q2 Performance - Dollar Tree achieved Q2 earnings of $0.77 per share, exceeding EPS expectations of $0.38 by 102% [3]. - The company reported Q2 sales of $4.56 billion, surpassing estimates of $4.45 billion [3]. - During the quarter, Dollar Tree opened 106 new stores and converted 585 stores to a new multi-price format, enhancing customer engagement [4]. Group 2: Guidance and Outlook - Dollar Tree raised its full-year revenue guidance to $19.3-$19.5 billion, up from $18.5-$19.1 billion [8]. - The company expects full-year adjusted EPS to be between $5.32-$5.72, an increase from the previous range of $5.15-$5.65 [8]. - However, the Q3 EPS outlook is flat year-over-year at $1.12, missing Wall Street's expectation of $1.33 due to higher discounts and input costs [9]. Group 3: Valuation Metrics - Following the recent stock dip to around $102, Dollar Tree trades at a forward earnings multiple of 20.3X, which is below the S&P 500 benchmark and the Zacks Retail-Discount Stores Industry average of 22.3X, but above Dollar General's 18.7X [10].

Core Insights - The back-to-school and college shopping season in the U.S. is experiencing a significant increase in early shopping, with 67% of shoppers starting their purchases by early July, up from 55% last year, marking the highest level since 2018 [1][2] Spending Trends - K-12 shoppers have an average budget of $295.81 for electronics, totaling $13.5 billion, $249.36 for clothing and accessories ($11.4 billion), $143.77 for school supplies ($6.6 billion), and $169.13 for shoes ($7.8 billion [3] - College students and parents are expected to spend an average of $309.50 on electronics ($20.7 billion), $191.39 on dorm furnishings ($12.28 billion), $166.07 on clothing and accessories ($11.1 billion), $140.24 on food ($9.4 billion), and $117.95 on shoes ($7.9 billion) [4] Company Insights - Costco Wholesale (COST) operates membership warehouses selling food and general merchandise at discounted prices, holding a Zacks Rank of 3 (Hold) and a VGM Score of B [5] - Lowe's Companies (LOW) is a leading home improvement retailer with a Zacks Rank of 3 and an upbeat VGM Score of A, offering essentials for back-to-campus needs [6] - Ambarella (AMBA) develops semiconductors for video compression and image processing, holding a Zacks Rank of 3 [7] - Amazon.com (AMZN) is a major e-commerce provider with a Zacks Rank of 3 [8] ETF Insights - ProShares Online Retail ETF (ONLN) tracks online retailers and charges 58 bps in fees with a yield of 0.65% annually [9] - VanEck Retail ETF (RTH) tracks the performance of various retail companies and charges 35 bps in fees with a yield of 0.70% annually [10][11] - Invesco Food & Beverage ETF (PBJ) focuses on U.S. food and beverage companies, charging 62 bps in fees with a yield of 1.68% annually [12] - VanEck Semiconductor ETF (SMH) tracks semiconductor companies and charges 35 bps in fees with a yield of 0.37% annually [13]

Key Takeaways Dollar Tree expects Q2 revenues of $4.5B, down 39.6% from the prior-year quarter.Consensus EPS of $0.38 shows a 43.3% drop from the prior-year quarter despite a slight upward revision.Higher SG&A, weak demand and tariffs weigh, but store growth and divestitures aid focus.Dollar Tree, Inc. (DLTR) is likely to register a decline in its top and bottom lines when it reports second-quarter fiscal 2025 results on Sept. 3, before the market opens. The Zacks Consensus Estimate for revenues is pegged a ...

Core Insights - Dollar General reported quarterly earnings of $1.86 per share, exceeding the Zacks Consensus Estimate of $1.56 per share, and showing an increase from $1.7 per share a year ago, resulting in an earnings surprise of +19.23% [1] - The company achieved revenues of $10.73 billion for the quarter ended July 2025, surpassing the Zacks Consensus Estimate by 0.47% and up from $10.21 billion year-over-year [2] - Dollar General's stock has increased approximately 46.7% since the beginning of the year, significantly outperforming the S&P 500's gain of 10.2% [3] Earnings Outlook - The future performance of Dollar General's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - The current consensus EPS estimate for the upcoming quarter is $0.90 on revenues of $10.59 billion, and for the current fiscal year, it is $5.77 on revenues of $42.41 billion [7] Industry Context - The Retail - Discount Stores industry, to which Dollar General belongs, is currently ranked in the top 45% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Core Insights - Ollie's Bargain Outlet Holdings, Inc. reported strong financial results for the second quarter of fiscal 2025, with net sales increasing by 17.5% year-over-year to $679.6 million and earnings per share rising by 25.0% to $0.99 [2][3][4] Financial Performance - Net sales for the quarter reached $679,556,000, up from $578,375,000, reflecting a year-over-year growth of 17.5% compared to 12.4% in the previous year [4][17] - Comparable store sales increased by 5.0%, driven by a rise in transactions [4][23] - Net income rose to $61,310,000, a 25.0% increase from $48,982,000 in the same quarter last year [4][17] - Adjusted EBITDA increased by 26.0% to $93,786,000, with an adjusted EBITDA margin of 13.8% [4][12] Operational Highlights - The company opened 29 new stores during the quarter, bringing the total to 613 stores across 34 states, marking a year-over-year growth of 16.8% [4][23] - Ollie's Army loyalty program saw a 10.6% increase in membership, reaching 16.1 million members [4][23] - Gross margin improved by 200 basis points to 39.9%, primarily due to lower supply chain costs and higher merchandise margins [4][12] Fiscal 2025 Outlook - The company raised its fiscal 2025 sales and earnings outlook, now projecting net sales of $2.644 billion, up from the previous estimate of $2.599 billion [6][7] - The expected number of store openings for fiscal 2025 has been increased to 85 from 75 [6][7] - The forecast for comparable store sales growth has been adjusted to 3.0% to 3.5%, up from 1.4% to 2.2% [6][7] Cash and Investments - Total cash and investments increased by 30.3% to $460.3 million, including cash and cash equivalents of $231.2 million [12][23] - Capital expenditures for the quarter were reported at $26,416,000, compared to $38,289,000 in the previous year [23]

For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. TJX (TJX) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.TJX is a member of the Retail-Wholesale sector. This group includes 202 individual stocks and currently holds a Zacks Sector Rank of #10. The ...

Core Insights - Dollar General has consistently surpassed earnings estimates, averaging a 16.54% beat over the last two quarters [1][5] - The most recent earnings report showed Dollar General earning $1.78 per share, exceeding the Zacks Consensus Estimate of $1.47 per share by 21.09% [2] - The previous quarter also saw a positive surprise, with actual earnings of $1.68 per share against an estimate of $1.50, resulting in a 12.00% surprise [2] Earnings Estimates and Predictions - Estimates for Dollar General have been trending higher due to its history of earnings surprises, indicating bullish sentiment among analysts [5] - The stock currently has a positive Earnings ESP of +0.06%, suggesting potential for another earnings beat in the upcoming report [8] - The next earnings report is anticipated to be released on August 28, 2025 [8] Zacks Rank and Earnings ESP - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of a positive surprise, with historical data indicating that nearly 70% of stocks with this combination beat consensus estimates [6][8] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [7]

Company Performance - Ross Stores reported quarterly earnings of $1.56 per share, exceeding the Zacks Consensus Estimate of $1.52 per share, but down from $1.59 per share a year ago, representing an earnings surprise of +2.63% [1] - The company posted revenues of $5.53 billion for the quarter ended July 2025, slightly missing the Zacks Consensus Estimate by 0.08%, but up from $5.29 billion year-over-year [2] - Over the last four quarters, Ross Stores has surpassed consensus EPS estimates four times, but has only topped consensus revenue estimates once [2] Market Performance - Ross Stores shares have declined approximately 3.3% since the beginning of the year, while the S&P 500 has gained 8.7% [3] - The current Zacks Rank for Ross Stores is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.46 on revenues of $5.33 billion, and for the current fiscal year, it is $6.22 on revenues of $21.98 billion [7] - The outlook for the Retail - Discount Stores industry is currently in the bottom 23% of over 250 Zacks industries, which may impact the performance of Ross Stores [8] Industry Comparison - Dollar Tree, a competitor in the same industry, is expected to report quarterly earnings of $0.37 per share, reflecting a year-over-year decline of -44.8%, with revenues anticipated to be $4.46 billion, down 39.6% from the previous year [9][10]

Core Viewpoint - TJX reported quarterly earnings of $1.1 per share, exceeding the Zacks Consensus Estimate of $1.01 per share, and showing an increase from $0.96 per share a year ago, indicating a positive earnings surprise of +8.91% [1][2] Financial Performance - The company achieved revenues of $14.4 billion for the quarter ended July 2025, surpassing the Zacks Consensus Estimate by 2.33%, compared to $13.47 billion in the same quarter last year [2] - Over the last four quarters, TJX has consistently exceeded consensus EPS estimates and revenue expectations [2] Stock Performance - TJX shares have increased approximately 11.4% since the beginning of the year, outperforming the S&P 500's gain of 9% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.21 on revenues of $14.66 billion, and for the current fiscal year, it is $4.47 on revenues of $58.83 billion [7] - The outlook for the Retail - Discount Stores industry, where TJX operates, is currently in the bottom 23% of Zacks industries, which may impact stock performance [8]

Target (TGT) came out with quarterly earnings of $2.05 per share, missing the Zacks Consensus Estimate of $2.09 per share. This compares to earnings of $2.57 per share a year ago. These figures are adjusted for non- recurring items. This quarterly report represents an earnings surprise of -1.91%. A quarter ago, it was expected that this retailer would post earnings of $1.62 per share when it actually produced earnings of $1.3, delivering a surprise of -19.75%. Over the last four quarters, the company has su ...