Stocks

4 Retails Stocks Likely to Top Estimates This Earnings Season

Though the earnings season has reached its tail end, the main chunk of releases from the Retail-Wholesale sector is yet to come. This time the season has been quite different for retailers. The space has been hit hard by the coronavirus-induced stay-at-home orders, social distancing and some mandatory store closures. As a result, U.S. retail sales witnessed a record decline for the second consecutive month in April. Per the Commerce Department retail sales in April fell 16.4%, following a decline of 8.3% in March.

Per the latest Zacks Earnings Preview report, the sector is anticipated to witness top-line growth of 5% this earnings season, down from an improvement of 7.2% in the last reporting cycle. Again, the bottom line is expected to plunge 21%, following an increase of one percentage point in the preceding season.

Here’s How the Quarter Shaped Up

The quarter that commenced on an upbeat note took

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3 Stocks to Keep an Eye On

Major retail players will be reporting first-quarter earnings numbers this week. The coronavirus outbreak has forced retailers selling discretionary items to shut outlets.

Meanwhile, retailers suppling essential commodities like food and cleaning products saw a considerable sales improvement in the quarter ending March. 

What’s more, the results will provide a clear picture of how retailers have managed the unprecedented pressure on supply chains, particularly for essentials like cleaning supplies. 

We will also gain an insight into the levels of cash flow and debt. After all, for any retailer, the ability to mitigate debt obligations is going to be crucial for survival. 

Here we discuss three key retail earnings reports which could move markets –

Walmart

Retail behemoth, Walmart Inc. (WMT) is scheduled to report first-quarter earnings on May 19, before market open. Walmart’s management hasn’t said anything recently about the impact of the pandemic on its performance. But the company

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