The quarterly earnings season continues today with two retail firms posting results.
TJX (TJX) beat analyst expectations nearly 90% of the time in the last two years. After it posts results, analysts typically raise their EPS estimates. TJX stock continues to be an attractive long-term holding.
While it is not as well run as Walmart (WMT), watch Target (TGT) today. In June 2024, retail sales increased. Consumers may potentially continue increasing their spending at Target.
In the software sector, Snowflake (SNOW) must post strong quarterly results. Berkshire’s (BRK-B) Warren Buffett sold his entire stake in SNOW stock. In May 2024, the firm reported a data breach. This breach affected key customers, including AT&T (T) and LendingTree (TREE). Risks are high that Snowflake incurred higher expenses to handle the security problem.
The firm may issue a weak outlook, citing weaker business spending.
Zoom (ZM) is among the firms in the growth slowdown phase to watch. It thrived during the pandemic but failed to sustain its growth afterward. The virtual meeting supplier must contend with a slowdown in subscriptions. Corporations forced workers to return to work, at least part of the time. This hurts Zoom subscription growth.
Microsoft (MSFT) offers Teams chat messaging and video conferencing. Windows customers do not need to pay for Zoom’s services.
ZM stock might pop if it posts good results but the stock’s long-term direction is lower.
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