The Zacks Analyst Blog Highlights: Target, Walmart, Best Buy, At Home Group and Domino's Pizza
For Immediate Release
Chicago, IL – September 17, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Target Corporation TGT, Walmart Inc. WMT, Best Buy Co., Inc. BBY, At Home Group Inc. HOME and Domino's Pizza, Inc. DPZ.
Here are highlights from Wednesday’s Analyst Blog:
Too Early? Add These 5 Retailers to Your Holiday Shopping List
Amid heightened fears of the ongoing pandemic and resultant social distancing, retailers are gearing up for an unprecedented holiday season. To beat the COVID-19 blues, they are looking for an early start to the festive season with an extended promotional period to avoid rush at stores, given the health concerns. Evidently, retailers need to address any logistical or inventory issues and roll out strategies to provide a seamless shopping experience, whether offline or online.
With shifts in consumer product preferences and a growing inclination toward online shopping, retailers need to replenish shelves with in-demand merchandise and ramp up investments in digitization this holiday season to draw customers.
It is quite apparent that retailers need to play dual in-store and online roles. In fact, the companies’ digital businesses have played a key role amid the lockdown. In this respect, the industry players have been directing resources toward digital platforms, accelerating fleet optimization and augmenting supply chain.
In fact, companies’ initiatives to expand delivery options — curbside pickup or ship-to-home orders — and contactless payment solutions have been a boon amid the pandemic. Additionally, retailers are investing in renovation, improved checkouts and mobile point-of-sale capabilities to keep stores relevant.
Despite all endeavors, there is a lingering fear about how comfortable consumers will be in terms of purchasing. Well, if consumers choose to tighten purse strings, retailers have to tough it out this shopping season. However, industry experts believe that any measure undertaken by the government to stimulate demand or a breakthrough in COVID-19 vaccine may lift consumer sentiments, and in turn retailing activities.
Daniel Bachman, Deloitte’s U.S. economic forecaster, said, “While high unemployment and economic anxiety will weigh on overall retail sales this holiday season, reduced spending on pandemic-sensitive services such as restaurants and travel may help bolster retail holiday sales somewhat.” According to a report from CNBC, Deloitte envisions holiday sales between $1.147 trillion and $1.152 trillion, which suggests an increase of 1-1.5% during the November-January period. Meanwhile, e-commerce sales are estimated to improve 25-35% to reach $182-$196 billion, per the consultancy firm.
5 Prominent Picks
All said, here we have shortlisted five stocks on the basis of a Zacks Rank #1 (Strong Buy) or 2 (Buy) and a VGM Score of A or B. You can see the complete list of today’s Zacks #1 Rank stocks here.
Target is worth betting on. The stock has a Zacks Rank #1 and a VGM Score of A. The company has a trailing four-quarter earnings surprise of 37.6%, on average. It has a long-term earnings growth rate of 7.2%. Moreover, the Zacks Consensus Estimate for its current financial year sales and earnings indicates an improvement of 12.4% and 11.9%, respectively, from the year-ago period.
Investors can count on Walmart, the operator of supermarkets, warehouse clubs, cash and carry stores and discount stores. The company has a trailing four-quarter earnings surprise of 9.5%, on average. It has a long-term earnings growth rate of 5.6%. The stock has a Zacks Rank #2 and a VGM Score of A. Moreover, the Zacks Consensus Estimate for its current financial year sales and earnings suggests growth of 5% and 7.1%, respectively, from the year-ago period.
You may invest in Best Buy Co., which has a Zacks Rank #2 and a VGM Score of A. The provider of technology products, services and solutions has a trailing four-quarter earnings surprise of 33.5%, on average. It has a long-term earnings growth rate of 8.5%. Moreover, the Zacks Consensus Estimate for its current financial year sales and earnings indicates growth of 3.8% and 17.3%, respectively, from the prior-year period.
We also suggest investing in At Home Group, which has a long-term earnings growth rate of 42.5%. This operator of home decor superstores has a trailing four-quarter earnings surprise of 12.4%, on average. The stock has a Zacks Rank #2 and a VGM Score of A. Moreover, the Zacks Consensus Estimate for its current financial year sales and earnings suggests an improvement of 12.4% and 196.5%, respectively, from the year-ago period.
Domino's Pizza with a long-term earnings growth rate of 13.9% is also a solid bet. This pizza company has a trailing four-quarter earnings surprise of 18.6%, on average. The stock has a Zacks Rank #2 and a VGM Score of B. Moreover, the Zacks Consensus Estimate for its current financial year sales and earnings indicates growth of 12.1% and 33.8%, respectively, from the year-ago period.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Target Corporation (TGT) : Free Stock Analysis Report
Dominos Pizza Inc (DPZ) : Free Stock Analysis Report
Walmart Inc. (WMT) : Free Stock Analysis Report
Best Buy Co., Inc. (BBY) : Free Stock Analysis Report
At Home Group Inc. (HOME) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
