Retail earnings season heats up on Wednesday, with Target (TGT), Lowe’s (LOW), and TJX Companies (TJX) all set to report results before the bell. While all three names are in focus, options traders are betting that one of them could see the biggest post-earnings move.
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
According to options pricing, Target is expected to move the most, with implied volatility suggesting a potential swing of 9.56% in either direction following its earnings release. That is much higher than the expected moves for Lowe’s of about 4.5% and 4% for TJX.
Why Target Is in the Spotlight
For its upcoming Q3 earnings report, Target is expected to report a year-over-year decline in both revenue and earnings per share. The consensus estimates stand at about $25.33 billion in revenue and $1.71 in EPS.
Target has had a rough year, as the stock is down more than 32% year-to-date. The company is struggling with cautious consumer spending on discretionary items and rising competition.
With the holiday season coming up, signs of stronger demand or margin recovery could lift the stock. On the other hand, weak forecasts or inventory pressure could push it down further.
Here’s What to Expect from Lowe’s and TJX
Lowe’s is expected to post $2.97 in EPS on $20.83 billion in revenue, according to consensus estimates. The home improvement giant has managed to maintain steady performance despite cooling demand in the housing sector.
Investors will be watching for updates on the performance of strategic initiatives, such as the acquisition of FBM, which aims to boost performance with professional customers.
At the same time, TJX Companies, the parent of T.J. Maxx and Marshalls, is expected to report $1.23 in EPS on $14.85 billion in revenue. With off-price retail continuing to attract budget-conscious shoppers, TJX stock has gained over 22% so far this year.
Which Retail Stock Is a Better Buy?
We use the TipRanks Stock Comparison tool to see how Wall Street analysts are rating Target, Lowe’s, and TJX, and which retailer they believe has the strongest upside.
