Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Stocks

Walmart (WMT) and Target (TGT) Earnings: Who’s Winning The Retail War?

by November 14, 2022
November 14, 2022
Walmart (WMT) and Target (TGT) Earnings:  Who’s Winning The Retail War?

Earnings season is quickly coming to a close, but it’s just starting among the big retailers. On Tuesday, we’ll get the latest earnings results from Walmart, Inc. (WMT), and that’ll be followed by Target Corp’s (TGT) quarterly earnings on Wednesday. Walmart and Target earnings will be just the tip of the retail iceberg as we’ll also hear from the two big home improvement retailers, Home Depot, Inc. (HD) and Lowe’s Companies, Inc. (LOW) on Tuesday and Wednesday, respectively. Throw in Advance Auto Parts, Inc. (AAP), TJX Companies (TJX), Ross Stores, Inc. (ROST), and BJ’s Wholesale Club Holdings, Inc. (BJ), and I think it’s clear that we’ll quickly get a pulse on the state of retail earnings.

Retail Sector: Technically Speaking

What should we expect from Target and Walmart earnings? Well, the widely-diversified retail ETF, SPDR S&P Retail (XRT) has been trading relatively flat vs. the S&P 500 Index ($SPX), so it’s giving us very little in the way of clues. Here’s how the XRT currently looks (see chart 1).

CHART 1: THE RETAIL SECTOR IS SHOWING SOME SIGNS OF AN UPSIDE. The SPDR S&P Retail ETF (XRT) seems to have turned bullish in the short term but it’s approaching resistance.

Short-term price momentum has turned bullish for retailers, but there’s still plenty of overhead resistance that needs to be negotiated. One other positive is the XRT’s relative price breakout vs. the S&P 500. It reached a three-month high on Friday’s close and perhaps is suggesting strong numbers ahead.

So let’s get back to the Target vs. Walmart earnings. Is relative price action pointing to a win by Walmart? One way to determine what Wall Street expects is to compare TGT and WMT. From chart 2, you see the Target vs. Walmart relative performance (TGT:WMT) tilting strongly in WMT’s favor over the past three months.

CHART 2: TGT VS. WMT. A comparison of the stock price performance of the two companies may provide some clues.

TGT rose strongly late last week and it made up plenty of relative ground vs. WMT, but I don’t think it completely reverses three months of declining relative strength. Wall Street has been showing a strong preference for WMT heading into earnings, so I expect to see WMT have a stronger earnings report.

Meanwhile, I expect the best earnings report of all, among retailers this week, to come from TJX on Wednesday morning. TJX is a leading apparel retailer in the Dow Jones US Apparel Retailers Index ($DJUSRA) and the apparel area of retail has been incredibly strong since the beginning of July.

CHART 3: APPAREL RETAILERS SHOW STRENGTH. TJX is one company to keep an eye on during retail earnings week.While most eyes this week will be on WMT and TGT, I’ll be quietly awaiting the TJX report.

Happy trading!

Tom

0
FacebookTwitterGoogle +Pinterest
previous post
Too Many Chiefs, Not Enough Indians – A Top Heavy U.S. Military
next post
FLASHBACK: FOX 10 Arizona Flashed Katie Hobbs as Gubernatorial Winner 12 Days Before Election — When She Was Behind by 11 Points in Their Own Poll

You may also like

What Does Equal-Weight S&P 500 Tell Us About...

August 16, 2023

Gold’s Wild Ride: A Bullish Uptrend or a...

May 22, 2023

Contrarian Trading Strategy: Scanning For Stocks to Fade

May 18, 2023

DP Trading Room: AI Bubble Deflating

September 9, 2024

Putting the Theory into Practice

November 30, 2022

DP Trading Room: Silver Cross Index Warning Signals

December 19, 2022

Earnings Provide Another Nail in the Retail Coffin

August 28, 2024

The Ord Oracle August 8, 2023

August 9, 2023

Bitcoin Futures Open Interest Spike

November 4, 2023

How to Find the Best BUY ZONE Using...

July 27, 2023

What Does Equal-Weight S&P 500 Tell Us About...

August 16, 2023

Gold’s Wild Ride: A Bullish Uptrend or a...

May 22, 2023

Contrarian Trading Strategy: Scanning For Stocks to Fade

May 18, 2023

DP Trading Room: AI Bubble Deflating

September 9, 2024

Putting the Theory into Practice

November 30, 2022

DP Trading Room: Silver Cross Index Warning Signals

December 19, 2022

Earnings Provide Another Nail in the Retail Coffin

August 28, 2024

The Ord Oracle August 8, 2023

August 9, 2023

Bitcoin Futures Open Interest Spike

November 4, 2023

How to Find the Best BUY ZONE Using...

July 27, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Israeli official rejects Trump’s call for Iran deal: ‘Outrageous’ to negotiate with ‘evil, jihadist regime’

      June 15, 2025
    • Karine Jean-Pierre abandons Dems after years fiercely defending Biden policies

      June 15, 2025
    • The Best Five Sectors, #23

      June 15, 2025
    • Former Clinton aide Huma Abedin, Alex Soros marry in swank Hamptons wedding packed with Dem heavyweights

      June 15, 2025
    • Dems ‘deliberately obfuscating’ truth about ‘big, beautiful bill’ with this claim: Watchdog

      June 15, 2025
    • Harrell E. Robinson on Building Global Healthcare from the Ground Up

      June 15, 2025

    Categories

    • Business (8,214)
    • Investing (2,035)
    • Politics (15,656)
    • Stocks (3,149)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved