The third-quarter earnings season continues this week. Walmart (WMT) is the retailer to watch as it reports results on Tuesday. The firm wants to achieve competitive efficiency over Amazon (AMZN). It will offer new incentives for its delivery drivers.
Independent drivers will get more incentives and more earnings opportunities. The firm also cut its Walmart+ annual membership by half, to $49.
Medtronic (MDT) will report results tomorrow. The stock traded in the $90-$92 range since September, failing to break out. The company needs to report strong results to justify its rich valuation of a PEG GAAP of 3 times. The industry average is 0.94 times.
On Wednesday, TJX Companies (TJX), Target (TGT), Nio (NIO), and Nvidia (NVDA) will report quarterly results. Among the retailers, expect TJX to report a strong quarter. The stock tried to break out above $120, only to pull back. Bears hold a 1.15% short float on the stock. This is among the lowest in the consumer discretionary sector. By comparison, bears hold a 10% short interest on Carmax (KMX), a 9.74% interest on Aptiv (APTV), and 8.55% on Pool (POOL).
Your Takeaway
Retailers may offer guidance on the current quarter. They will have a good sense of consumer spending levels during the holiday season.
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