L'intérêt à découvert pour VanEck Retail ETF donne aux investisseurs une idée du degré auquel les investisseurs parient sur la baisse de l'action de VanEck Retail ETF. Les données sur l'intérêt à découvert sont mises à jour toutes les deux semaines.

VanEck Retail ETF (NASDAQ:RTH), Rapport sur les intérêts à découvert

VanEck Retail ETF

VanEck Vectors Retail ETF

Consumer Cyclical

Consumer Defensive

Healthcare

The Fund normally invests at least 80 percent of its total assets in securities that comprise the Funds benchmark index. To be initially eligible for the Retail Index, companies must generate at least 50 percent of their revenues from retail. Retail includes companies engaged primarily in retail distribution; wholesalers; online, direct mail and TV retailers; multi-line retailers; specialty retailers, such as apparel, automotive, computer and electronics, drug, home improvement and home furnishing retailers; and food and other staples retailers. Of the largest 50 stocks in the retail industry by full market capitalization, the top 25 by free-float market capitalization (i.e., includes only shares that are readily available for trading in the market) and three month average daily trading volume are included in the Retail Index.

Amazon.Com Inc

Costco Wholesale Corp

Walmart, Inc.

Home Depot Inc/The

Lowe's Cos Inc

Tjx Cos., Inc.

Mckesson Corp

O'Reilly Automotive Inc

Cvs Health Corp

Target Corp Common Stock Usd 0.0833

Rotharium

Target Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TGT#NYSE">TGT</a>) shares are trading slightly higher following strong earnings from top peer Walmart Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>).
Today, Walmart announced third-quarter results and raised its fiscal-2025 guidance. The retailer reported adjusted EPS of 58 cents, beating the consensus of 53 cents. Sales were $169.59 billion, up <a href="https://corporate.walmart.com/content/dam/corporate/documents/newsroom/2024/11/19/walmart-releases-q3-fy25-earnings/q3-fy25-earnings-release.pdf" target="_blank" rel="noreferrer noopener">5.5</a>% year over year or 6.2% (at constant currency), <a href="https://www.benzinga.com/24/11/42060801/walmart-tops-q3-estimates-ecommerce-growth-shines-with-27-lifts-full-year-forecast" target="_blank" rel="noreferrer noopener">beating the consensus of $167.72 billion. </a>
For FY25, Walmart raised its adjusted EPS outlook to $2.42 – $2.47 (from $2.35 – $2.43), vs. the consensus of $2.45. Walmart boosted FY25 net sales (at constant currency) growth guidance to 4.8% – 5.1% from 3.75% – 4.75% earlier.
Meanwhile, Target will report its third-quarter results on Wednesday, November 20, <a target="_blank" href="https://www.benzinga.com/pressreleases/24/11/n42060504/target-corporation-to-webcast-3rd-quarter-earnings-conference-call-on-wednesday-november-20-2024" rel="noreferrer noopener">2024, at 7:00 a.m. central time.</a>
Also Read: <a target="_blank" href="https://www.benzinga.com/24/11/42058223/us-stocks-likely-to-open-in-red-as-geopolitical-tension-weigh-on-investor-sentiment-wharton-economist-says-market-trajectory-will-heavily-depend-on-trumps-tariff-plans" rel="noreferrer noopener">US Stocks Likely To Open In Red Amid Mounting Geopolitical Tensions: Wharton Economist Says Market Trajectory Will &#8216;Heavily Depend&#8217; On Trump&#8217;s Tariff Plans</a>
Last week, Target announced its store hours for Black Friday week <a target="_blank" href="https://www.benzinga.com//node/41895063" rel="noreferrer noopener">and the holiday season.</a>
On Friday, November 29, Target will open its doors early at 6 a.m. local time, offering exclusive items such as the &#8220;Taylor Swift &#x7C; The Eras Tour Book&#8221; and &#8220;The Tortured Poets Department: The Anthology&#8221; on CD and vinyl.
These items will be available only at Target, along with top deals across the store. Special offers will be available in-store, online, and through the Target app, providing shoppers with great value for their holiday purchases.
According to&nbsp;<a target="_blank" href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw" rel="noreferrer noopener">Benzinga Pro</a>, TGT stock has gained over 20.76% in the past year. Investors can gain exposure to the stock via&nbsp;SPDR Select Sector Fund &#8211; Consumer Staples (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>) and&nbsp;VanEck Retail ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RTH#NASDAQ">RTH</a>).
Price Action: TGT shares are trading higher by 0.57% to $157.46 at last check Tuesday.
Photo via Shutterstock
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</ul>

Equities

News

Markets

Movers

General

Merrill Lynch Retail HOLDRS Trust due 12/31/41

What's Going On With Target Stock Today?

J. P. Morgan analyst Christopher Horvers expressed views on Home Depot, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HD#NYSE">HD</a>) third-quarter earnings&nbsp;results reported today.
The company reported sales growth of 6.6% year-over-year to $40.217 billion, beating the consensus estimate of $39.173 billion and adjusted EPS of $3.78,&nbsp;<a target="_blank" href="https://www.benzinga.com/news/earnings/24/11/41902698/home-depot-q3-earnings-revenue-and-eps-beat-lifts-full-year-forecast-despite-customer-traffic-dip" rel="noreferrer noopener">beating the consensus of $3.64</a>.
Home Depot raised its FY24 sales guidance from $156.49 billion – $158.01 billion to $158.78 billion vs.<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener"> the $157.33 billion consensus</a>.
The company now expects Adjusted EPS of $15.10 (representing a decline of approximately&nbsp;1%&nbsp;from&nbsp;$15.25 in FY23) vs. the consensus of $14.84.&nbsp;
The analyst, with an <a target="_blank" href="https://www.benzinga.com/quote/HD/analyst-ratings" rel="noreferrer noopener">Overweight rating</a>, notes that the EPS forecast appears to be somewhat conservative.
Overall, Horvers says that there is still more to understand about the business&#8217; current state, but excluding the 50-basis-point hurricane boost, the U.S. business showed a decline of -1.7%, an improvement from the -3.4% in the first half of 2024.
The company is essentially aligning with Street expectations for a ~-2% decline in the fourth quarter, adds the analyst.
The analyst writes that while the extended outdoor season likely helped, the pace of deterioration should continue to slow into 2025, as the share-of-wallet headwind has eased and wages grow by 3.5%-4%, supporting baseline consumption in the category.
Therefore, the Street&#8217;s +2% comp forecast for 2025 seems reasonable, adds the analyst.
Investors can gain exposure to the stock via&nbsp;iShares U.S. Consumer Focused ETF&nbsp;(BATS:<a class="ticker" href="https://www.benzinga.com/stock/IEDI#BATS">IEDI</a>) and VanEck Retail ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RTH#NASDAQ">RTH</a>).
Price Action: HD shares are down 0.44% at $406.51 at the last check Tuesday.
Photo: Sockagphoto via Shutterstock
Read Next:
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<li><a href="https://www.benzinga.com/trading-ideas/technicals/24/11/41907482/stock-of-the-day-home-depot-flashes-buy-signal-as-earnings-beat-expectations" target="_blank" rel="noreferrer noopener">Stock Of The Day: Home Depot Flashes Buy Signal As Earnings Beat Expectations</a></li>
</ul>

Analyst Color

Large Cap

Analyst Ratings

Trading Ideas

IEDI

Home Depot's Earnings Beat Sets Conservative Tone for FY24, J.P. Morgan Predicts Slowing Deterioration Ahead

Alice Walton, daughter of the late Sam Walton and heiress to the Walmart Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>) fortune, has retaken the distinction as<a href="https://www.benzinga.com/markets/equities/24/09/40945833/walmart-to-offer-pay-by-bank-feature-for-online-transactions-with-launch-in-2025"> the world&#8217;s richest woman</a>.
As of Sept. 4, Walton&#8217;s wealth was estimated at $89.1 billion, according to Forbes &#8220;World Wealthiest Woman&#8221; list. The ranking puts her slightly ahead of French cosmetics company L&#8217;Oreal heiress Francoise Bettencourt Meyers, USA Today <a href="https://www.usatoday.com/story/money/2024/09/16/alice-walton-richest-woman-forbes/75256526007/">reported</a>.
Bettencourt Meyers held the title last year when her worth was estimated at over $100 billion, but it is now at $88.4 billion.
The two heiresses have traded the No. 1 and No. 2 spots a few times over the years, such as when Bettencourt Meyers was the richest woman in 2019 but was then surpassed by Walton in 2020.
Read Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40420968/walmart-stock-one-of-the-most-compelling-retail-investments-7-analysts-highlight-ma">Walmart Stock &#8216;One Of The Most Compelling&#8217; Retail Investments: 7 Analysts Highlight Market Share Gains</a>
Bettencourt Meyers took the title as world&#8217;s richest woman back in 2023 from Walton, who then took third place due to Koch Inc. heiress Julia Koch, who now has a net worth of $74 billion as of Sept. 4, according to the Forbes ranking.
But Walton is not the richest person in her family.
She sits below her brothers Jim and Rob Walton, who were worth $95.9 billion and $94 billion respectively, as of Sept. 4.
Sam Walton&#8217;s heirs together own nearly 46% of Walmart.
Throughout her life, she has donated more than $5 billion to charitable foundations including the Crystal Bridges Museum of American Art, which she founded in November 2011 in Bentonville, Arkansas.
Elon Musk, who owns Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), SpaceX, X and other companies, is the <a href="https://www.benzinga.com/startups/24/09/40905106/elon-musk-gautam-adani-and-jensen-huang-lead-the-race-to-become-the-worlds-first-trillionaires">world&#8217;s richest person </a>with an estimated wealth of $251 billion.
Price Action: Walmart slipped 1.05% to $78.20 into Thursday&#8217;s late-day trading.
Exchange-traded funds that hold the stock saw losses ands gains.
<ul>
<li>Consumer Staples Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>) slipped 0.44%</li>
<li>Fidelity MSCI Consumer Staples Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FSTA#NYSE">FSTA</a>) dropped 0.33%</li>
<li>VanEck Retail ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RTH#NASDAQ">RTH</a>) rose 0.75%</li>
</ul>
Read Now:
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</ul>
Image: Walmart, Wikimedia Commons

Retail Sales

Personal Finance

ETFs

FSTA

TSLA

Walmart Heiress Alice Walton Retakes Title As World's Richest Woman

Port employers and the union representing East and Gulf coasts dockworkers begin <a href="https://www.benzinga.com/news/global/24/08/40497103/strikes-at-us-ports-canadas-railways-may-cause-container-freight-rate-volatility">a two-day meeting</a> in New Jersey to prevent a strike that would disrupt maritime commerce along the entire U.S. Eastern Seaboard.
Talks on a labor deal for six of the 10 busiest ports stopped in June when the International Longshoremen&#8217;s Association called off wage negotiations with the U.S. Maritime Alliance (USMX) that represents ocean carriers and port operators, Bloomberg <a href="https://www.bloomberg.com/news/articles/2024-09-04/us-port-talks-kick-off-in-bid-to-avoid-economy-disrupting-strike?sref=TBDibEcD">reported</a>.
U.S. retailers are once again asking the White House to help about 45,000 dockworkers and 36 ports come to a resolution before a looming Sept. 30 deadline.
"At a time when inflation is on the downward trend, a strike or other disruption would significantly impact retailers, consumers and the economy,&#8221; National Retail Federation (NRF) CEO Matthew Shay said in a statement on Tuesday.
&#8220;The administration needs to offer any and all support to get the parties back to the table to negotiate a new contract."
The NRF said it led a coalition of 158 state and federal trade associations in June in sending a letter to President Joe Biden urging his administration to work with the union and the terminal operators toward ending the deadlock. It also sent a letter to both sides earlier this year asking them to resume labor talks.
Read Also: <a href="https://www.benzinga.com/government/24/08/40526448/canadian-government-intervenes-to-avoid-economic-crisis-orders-railways-back-to-work">Canadian Government Intervenes To Avoid Economic Crisis, Orders Railways Back To Work</a>
&#8220;The threat of a strike during the peak shipping season has many retailers already implementing costly mitigation,&#8221; Shay said.
"At a time when inflation is on the downward trend, a strike or other disruption would significantly impact retailers, consumers and the economy.&#8221;
The union is seeking a wage hike of nearly 80% over six years, compared to the 32% pay increase that West Coast dockworkers received last summer after ironing out a labor deal.
ILA President&nbsp;Harold Daggett&nbsp;has repeatedly warned of a strike if no deal is reached by the deadline and has opposed using automation at port terminals.
USMX has said they have given an &#8220;industry-leading&#8221; offer on wages and proposed keeping the language on automation out of the existing contract.
Price Action: Major retailers and the exchange-traded funds that hold retail stocks saw losses into Wednesday&#8217;s mid-morning trading.
<ul>
<li>Home Depot, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HD#NYSE">HD</a>) was down 0.77% to $361.87</li>
<li>Walmart Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>) slipped 0.039% to $77.15</li>
<li>Target Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TGT#NYSE">TGT</a>) fell 0.12% to $151.62</li>
<li>SPDR S&amp;P Retail ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XRT#NYSE">XRT</a>) declined 0.89% to $74.37</li>
<li>VanEck Retail ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RTH#NASDAQ">RTH</a>) was down 0.51% at $207.58.</li>
<li>Direxion Daily AMZN Bull 2X Shares (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZU#NASDAQ">AMZU</a>) slid 1.42% to $29.25.</li>
</ul>
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<li><a href="https://www.benzinga.com/top-stories/24/08/40515606/2-railway-strikes-3-us-sectors-in-trouble-277b-in-goods-at-stake-as-canadian-unions-call-for-new-con">2 Railway Strikes, 3 US Sectors In Trouble: $277B In Goods At Stake As Canadian Unions Call For New Contracts</a></li>
</ul>
Photo: Shutterstock

Government

AMZU

Retailers Plea For Deal: US Ports, Union Start Two-Day Talk In Effort To Prevent Disruptive Strike

Several analysts raised their price targets for The TJX Companies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TJX#NYSE">TJX</a>) following yesterday&#8217;s strong second-quarter results.
TJX reported EPS of $0.96 (+13%) and $13.468 billion in sales, which exceeded estimates, driven by a <a target="_blank" href="https://www.benzinga.com/news/earnings/24/08/40484279/tjx-companies-q2-earnings-strong-sales-higher-margins-invests-in-dubais-brands-for-less" rel="noreferrer noopener">4% rise in comparable store sales</a>.
The company raised its FY25 EPS outlook to $4.09-$4.13 and expects third-quarter EPS between $1.06 and $1.08, <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">despite slightly missing estimates</a>.
BofA Securities analyst Lorraine Hutchinson raised the price target to $135 from $115 while maintaining a Buy rating, reflecting an increased confidence in sales and profitability. The analyst writes that a strong quarter confirms its market share gains and consumer appeal.
Better buying and tailored merchandising strategies are enhancing markon and lowering markdown rates for TJX, adds the analyst.
Hutchinson anticipates these factors, combined with selective price increases, to boost merchandise margins. The analyst raised the FY25 EPS estimate by 1% to $4.12.
Apart from this, maintaining a Buy rating, UBS boosted the price target to $148 (from $134), Jefferies to $140 (from $130), TD Cowen to $125 (from $120), and Loop Capital to $140 (from $125).
Telsey Advisory Group analyst Dana Telsey increased the price target to $134 from $128 while reiterating the Outperform rating.
The analyst says that TJX&#8217;s consecutive earnings beats show that its value proposition resonates with consumers, supported by a favorable buying environment that meets increased traffic.
With a strong quarterly performance and raised FY24 guidance, TJX is set to continue gaining profitable market share through consistent comp gains and new store openings, including its 5,000th store, adds the analyst.
The analyst writes that the company is well-positioned this fiscal year to attract value-seeking consumers across all income brackets.
Telsey slightly raised the FY24 EPS estimate to $4.15 (from $4.13 earlier, compared to the previous consensus estimate of $4.13.
Moreover, reaffirming an Outperform rating, Evercore ISI Group increased the price target to $138 (from $126), BMO Capital to $133 (from $116), and Baird to $128 (from $113).
Investors can gain exposure to the stock via Segall Bryant &amp; Hamill Trust Segall Bryant &amp; Hamill Select Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USSE#NYSE">USSE</a>) and VanEck Retail ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RTH#NASDAQ">RTH</a>).
Price Action: TJX shares are down 0.53% at $119.59 at the last check Thursday.
Photo via <a href="https://commons.wikimedia.org/wiki/File:TJ_Maxx_%2851922971696%29.jpg">Wikimedia Commons</a>
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</ul>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Price Target

Reiteration

Segall Bryant & Hamill Trust Segall Bryant & Hamill Select Equity ETF

USSE

TJX Companies Gains Analyst Confidence With Consecutive Earnings Beats And Market Share Growth

Target Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TGT#NYSE">TGT</a>) and Ross Stores, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ROST#NYSE">ROST</a>) should <a href="https://www.benzinga.com/markets/equities/24/08/40393307/why-is-target-corporation-stock-gaining-today">post better revenues</a> for the second quarter as consumers continue spending despite macro uncertainties, according to analysts from Tesley Advisory Group.
Analyst Joseph Feldman expects Target&#8217;s second-quarter revenue to improve 2% from a year ago to $25.3 billion when it reports earnings on Wednesday before the market opens. His forecast exceeds FactSet revenue consensus of $25.2 billion.
&#8220;Broadly, we believe consumers are showing resiliency as they continue to search for value and focus on essentials, while selectively spending on discretionary items and responding to innovation and newness,&#8221; Feldman wrote in a note on Target, commenting on shoppers in general.
Target continues to focus on its value-offering by cutting prices while offering private brands in new stores, he said.
Feldman maintains an Outperform rating and a $190 price target on Target shares.
Read Also: <a href="https://www.benzinga.com/economics/macro-economic-events/24/08/40393687/retail-sales-soar-in-july-weekly-jobless-claims-undercut-expectations-traders-lea">Retail Sales Soar In July, Weekly Jobless Claims Undercut Expectations: Traders Lean Towards 25-Basis-Point Cut In September</a>
Analyst Dana Tesley forecasts a 6.9% jump in year-over-year second quarter revenue for Ross Stores to $5.28 billion when it releases its results on Thursday after the market closes. Her expectation exceeds revenue consensus of $5.24 billion.
&#8220;We continue to be encouraged by ROST's string of strong results across the past five quarters, with the business navigating macro challenges relatively well despite outsized pressure on some of its core consumers,&#8221; she wrote in a note.
&#8220;We are encouraged by management's efforts to improve the product mix and drive efficiencies across the business.&#8221;
She maintains a Market Perform and $160 price target on the stock.
Price Action: Target gained 1.67% to close at $144.03 on Friday, while exchange-traded funds that track the stock also advanced.
<ul>
<li>VanEck Retail ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RTH#NASDAQ">RTH</a>) gained 0.61</li>
<li>Consumer Staples Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>) picked up 0.27%</li>
<li>Simplify Next Intangible Value Index ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/NXTV#BATS">NXTV</a>) edged up 0.15%</li>
<li>Federated Hermes U.S. Strategic Dividend ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDV#NYSE">FDV</a>) went up 0.41%</li>
<li>Vanguard Consumer Staples ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VDC#NYSE">VDC</a>) gained 0.32%</li>
</ul>
Ross Stores slipped 0.27% to close at $147.40 on Friday, while ETFs that follow its shares had mixed results.
<ul>
<li>VictoryShares THB Mid Cap ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MDCP#NASDAQ">MDCP</a>) rose 0.52%</li>
<li>BlackRock Future U.S. Themes ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BTHM#NYSE">BTHM</a>) slipped 0.03%</li>
<li>IShares U.S. Consumer Focused ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IEDI#BATS">IEDI</a>) moved up 0.24%</li>
<li>LG QRAFT AI-Powered U.S. Large Cap Core ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LQAI#NYSE">LQAI</a>) remained unchanged</li>
<li>Invesco S&amp;P 500 Equal Weight Consumer Discretionary ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSPD#NYSE">RSPD</a>) rose 0.29%</li>
</ul>
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<li><a href="https://www.benzinga.com/news/retail-sales/24/06/39366813/retail-sales-preview-may-numbers-expected-to-rise-as-consumers-feeling-more-positive">Retail Sales Preview: May Numbers Expected To Rise As Consumers &#8216;Feeling More Positive&#8217;</a></li>
</ul>

Earnings

Guidance

BlackRock ETF Trust BlackRock Future U.S. Themes ETF

BTHM

First Trust Strategic Value Index Fund for Credit Suisse US Value Index

Exchange Listed Funds Trust LG QRAFT AI-Powered U.S. Large Cap Core ETF

LQAI

MDCP

Simplify Exchange Traded Funds Simplify Next Intangible Value Index ETF

NXTV

ROST

RSPD

Target, Ross Stores Expected To Post Higher Revenues As Consumers Stay Resilient: Analysts

Target Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TGT#NYSE">TGT</a>) shares are <a target="_blank" href="https://www.benzinga.com/premarket" rel="noreferrer noopener">trading higher on Thursday</a>.
According to&nbsp;<a target="_blank" href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw" rel="noreferrer noopener">Benzinga Pro</a>, TGT stock has gained over 8% in the past year.
Investors can gain exposure to the stock via&nbsp;VanEck Retail ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RTH#NASDAQ">RTH</a>) and&nbsp;SPDR Select Sector Fund &#8211; Consumer Staples (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>).
Yesterday, Oppenheimer analyst Rupesh Parikh maintained Target with an Outperform rating, <a target="_blank" href="https://www.benzinga.com/quote/TGT/analyst-ratings" rel="noreferrer noopener">lowering the price forecast from&nbsp;$200&nbsp;to&nbsp;$180.</a>
Today, the stock is soaring following solid earnings results and an outlook boost from Walmart Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>).
Walmart&#8217;s second-quarter adjusted earnings per share of 67 cents exceeded the 64 cents estimate. The retail behemoth&#8217;s second-quarter revenue reached $169.3 billion, above the $168.569 billion estimate.
Check This Out: <a target="_blank" href="https://www.benzinga.com/news/earnings/24/08/40391777/walmart-q2-earnings-e-commerce-and-advertising-businesses-fuel-revenue-and-profit-beat-hikes-annual" rel="noreferrer noopener">Walmart Q2 Earnings: E-commerce and Advertising Businesses Fuel Revenue And Profit Beat, Hikes Annual Guidance</a>
Consolidated gross margin rate improved by 43 basis points, driven by Walmart U.S. and Walmart International.
Walmart announced that Bob Moritz, the retired Chairperson of PricewaterhouseCoopers (PwC), has been appointed to<a target="_blank" href="https://www.benzinga.com/pressreleases/24/08/b40390428/bob-moritz-former-pricewaterhousecoopers-chairperson-named-to-walmart-board-of-directors" rel="noreferrer noopener"> its Board of Directors, effective immediately.</a>
For the third quarter, Walmart projects adjusted earnings per share between 51 cents and 52 cents, versus the 55 cents estimate.
Walmart currently sees FY25 adjusted EPS outlook of $2.35 to $2.43 <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">versus the $2.43 estimate.</a>
Walmart boosted FY25 net sales (at constant currency) growth guidance to 3.75%-4.75% from&nbsp;3.0%-&nbsp;4.0%.
Target is capitalizing on Walmart&#8217;s quarterly success by riding the positive momentum and boosting investor confidence, as evidenced by its rising stock price.
In June, Target declared a quarterly dividend of&nbsp;$1.12&nbsp;per common share, a 1.8% increase from the prior quarterly dividend of&nbsp;$1.10.&nbsp; The <a target="_blank" href="https://www.benzinga.com/pressreleases/24/06/n39287040/target-corporation-increases-quarterly-dividend-by-1-8-percent" rel="noreferrer noopener">dividend is payable&nbsp;Sept. 10, 2024&nbsp;</a>
Earlier this week, Target announced that&nbsp;Amy Tu&nbsp;has been named chief legal and compliance officer and corporate secretary effective&nbsp;Aug. 25. She started her career in retail with senior legal roles at<a target="_blank" href="https://www.benzinga.com/pressreleases/24/08/n40332743/target-names-amy-tu-chief-legal-and-compliance-officer" rel="noreferrer noopener"> companies such as Walmart and The Gap.</a>
Price Action: At the last check Thursday, TGT shares were trading higher by 3.86% to $141.00 premarket, while WMT shares were trading higher by 7.59% to $73.87.
Photo via Shutterstock
Read Next:
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</ul>

Why Is Target Corporation Stock Gaining Today?

Editor&#8217;s note: This story has been updated to correct the spelling of the analyst firm Telsey Advisory Group.
Careful consumers have put the brakes on Home Depot Inc&#8216;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HD#NYSE">HD</a>) revenue for<a href="https://www.benzinga.com/news/earnings/24/08/40345499/s-p-500-gains-1-home-depot-earnings-top-views"> the second quarter</a> as they await the Federal Reserve&#8216;s expected rate cut in mid-September while navigating a shaky economy, an analyst says.
The retail giant posted $43.1 billion in revenue for the three-month period, down 0.6% from a year ago and missing the Wall Street consensus of $43.3 billion.
&#8220;The soft sales reflect pressure from the tough home improvement and soft housing market trends, with higher interest rates and macroeconomic uncertainty,&#8221; Telsey Advisory Group analyst Joseph Feldman said in a note.
&#8220;Furthermore, CFO Richard McPhail spoke in a CNBC interview this morning about how the consumer has become increasingly cautious in the current environment, while also deferring projects with expected interest-rate cuts creating lower financing costs three to six months from now,&#8221; the analyst added.
Read Also: <a href="https://www.benzinga.com/news/earnings/24/08/40330906/home-depot-earnings-are-imminent-here-are-the-recent-forecast-changes-from-wall-streets-most-accura">Home Depot Earnings Are Imminent; Here Are The Recent Forecast Changes From Wall Street&#8217;s Most Accurate Analysts</a>
Telsey maintained a Market Perform rating and a $360 price target on Home Depot.
Home Depot realized $1.3 billion in revenue over six weeks during the quarter as a result of acquiring building products provider SRS Distribution Inc. earlier this year. 
<a href="https://account.microsoft.com/privacy/ad-settings" target="_blank" rel="noreferrer noopener"></a>Customer transactions for the second quarter fell 1.8%. Same-store sales worldwide decreased 3.3%, while same-store sales in the U.S. dropped 3.6%.
Second-quarter gross profit rose 1.8% from the same period last year to $14.4 billion to post a gross margin of 33.4% that is up 40 basis points from a year ago.
Price Action: Home Depot rose 1.52% to $351.12 by Tuesday&#8217;s mid-afternoon trading, while exchange-traded funds that track the stock gave mixed reactions to Tuesday&#8217;s earnings report.
<ul>
<li>IShares U.S. Consumer Focused ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IEDI#BATS">IEDI</a>) ticked up 0.23%</li>
<li>Consumer Discretionary Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) gained 2.28%</li>
<li>VanEck Retail ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RTH#NASDAQ">RTH</a>) slipped 0.18%</li>
<li>ProShares Ultra Consumer Discretionary (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UCC#NYSE">UCC</a>) slid 1.06%</li>
<li>Fidelity MSCI Consumer Discretionary Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDIS#NYSE">FDIS</a>) rose 2.14%</li>
</ul>
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</ul>
Photo: Shutterstock

FDIS

Select Sector SPDR-Consumer Discretionary

Home Depot Sales Fall Short As Consumers 'Become Increasingly Cautious': Analyst (CORRECTED)

The online e-commerce behemoth Amazon&nbsp;kicked off its most-anticipated two-day Prime Day event. Prime Day sales rose almost 12% year over year in the first seven hours, per data from Momentum Commerce.
According to Numerator, the average household spent about $100 on Prime Day purchases as of noon New York time on Jul 16. The top-selling items included protein shakes, the Amazon Fire TV stick streaming device, sunscreen and Amazon&#39;s Happy Belly brand grocery items.
Investors can tap the opportune moment with the ETFs having a double-digit allocation to this online behemoth. These include ProShares Online Retail ETF (ARCA:ONLN), Fidelity MSCI Consumer Discretionary Index ETF (ARCA:FDIS), Vanguard Consumer Discretionary ETF (ARCA:VCR), Consumer Discretionary Select Sector SPDR Fund (ARCA:XLY) and VanEck Vectors Retail ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/rth#NASDAQ">RTH</a>).
According to Adobe data, the 48-hour event is expected to rake in $14 billion in online sales, up 10.5% from the last year. Shoppers are expected to spend $7.1 billion on Amazon on Tuesday alone, up 11.3% from last year. Day 2 is expected to bring $6.9 billion in online sales, up 9.2% year over year. The biggest discount is expected on electronics at 22%, followed by 20% on clothing, 17% on home goods and furniture and 11% on sporting goods.
<h3>ETFs in Focus</h3>
ProShares Online Retail ETF
ProShares Online Retail ETF offers exposure to companies that principally sell online or through other non-store channels and then zeros in on the companies that reshape the retail space. It tracks the ProShares Online Retail Index, holding 18 stocks in its basket. Amazon is the top firm, accounting for 23.4% of the portfolio. ProShares Online Retail ETF has amassed $101.8 million in its asset base and charges 58 bps in annual fees from investors.
Fidelity MSCI Consumer Discretionary Index ETF
Fidelity MSCI Consumer Discretionary Index ETF tracks the MSCI USA IMI Consumer Discretionary Index, holding 274 stocks in its basket. Of these, Amazon takes the top spot with a 23.3% share. Fidelity MSCI Consumer Discretionary Index ETF has amassed $1.5 billion in its asset base and charges 8 bps in annual fees from investors. It has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
Vanguard Consumer Discretionary ETF
Vanguard Consumer Discretionary ETF currently follows the MSCI US Investable Market Consumer Discretionary 25/50 Index and holds 304 stocks in its basket. Of these, Amazon occupies the top position, with a 23.4% allocation. Broadline Retail takes the largest share at 25.5%, while automobile manufacturers, restaurants and home improvement retail round off the next three spots. VCR charges investors 10 bps in annual fees. The product has managed $5.7 billion in its asset base and carries a Zacks ETF Rank #3 with a Medium risk outlook.
Consumer Discretionary Select Sector SPDR Fund
Consumer Discretionary Select Sector SPDR Fund offers exposure to the broad consumer discretionary space by tracking the Consumer Discretionary Select Sector Index. It is the largest and the most popular product in this space, with AUM of nearly $20 billion and an average daily volume of 2.7 million shares. Holding 52 securities in its basket, Amazon takes the top spot with 22.5% of assets. Broadline retail, specialty retail, hotels, restaurants &amp; leisure, and automobiles are the top four sectors with double-digit exposure each. Consumer Discretionary Select Sector SPDR Fund charges 0.09% in expense ratio and has a Zacks ETF Rank #3 with a Medium risk outlook.
VanEck Vectors Retail ETF
VanEck Vectors Retail ETF provides exposure to the 26 largest retail firms by tracking the MVIS US Listed Retail 25 Index, which measures the performance of the companies involved in retail distribution, wholesalers, online, direct mail and TV retailers, multi-line retailers, specialty retailers and food and other staples retailers. Amazon takes the top position in the basket with a 20.4% share. VanEck Vectors Retail ETF has amassed $213 million in its asset base and charges 35 bps in annual fees. It trades in trading volume of 5,000 shares per day on average and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
<a href="https://www.zacks.com/stock/news/2303589/5-etfs-to-profit-from-amazon-s-prime-day-event?cid=CS-BENZ-FT-etf_news_and_commentary-2303589">To read this article on Zacks.com click here.</a>

Events

Tech

ONLN

5 ETFs to Profit From Amazon's Prime Day Event

Amazon.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) should beat last year&#8217;s<a href="https://www.benzinga.com/news/24/07/39770529/amazon-gears-up-for-prime-day-2024-with-2t-market-cap"> Prime Day results</a> due to &#8220;early access deals,&#8221; analysts say.
Bank of America (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>) expects sales for this year&#8217;s 48-hour sales spree to jump 7% to $13 billion, beating the 6.1% sales leap to $12.7 billion posted during last year&#8217;s Prime Day, CNBC report <a href="https://www.cnbc.com/2023/07/13/amazon-prime-day-more-than-375-million-items-sold.html">citing</a> Adobe Analytics.
&#8220;In our view, this year&#8217;s press release was more focused on early access deals and discounted services than last year, which could pull forward some sales out of Prime Day(s),&#8221; the bank said in a note on Monday
Amazon will offer discounts on hundreds of items over the two days to consumers with Amazon Prime memberships, including 57% off an Amazon Fire HD tablet computer, 28% off a Kenmore electric oven and 37% off a 55-inch Amazon Fire TV, according to its website.
Also Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39695135/analysts-see-upside-ahead-for-amazon-stock-as-prime-day-approaches">Analysts See Upside Ahead For Amazon Stock As Prime Day Approaches</a>
Bank of America noted that Amazon isn&#8217;t the only retailer holding July sales events. Retail giant Walmart Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>) just held a deal event that ended July 11. Target Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TGT#NYSE">TGT</a>) held a &#8220;Circle Week&#8221; promotion that closed on July 13. TikTok Shop is holding a &#8220;Deal for You Days&#8221; that began on July 9.
Bank of America maintains a Buy rating and price target of $194.49 for Amazon.
Price Action: Amazon edged up 0.28% to $195.04 by late-morning trading on Monday. Walmart edged up 0.84% to $69.82. 
Exchange-traded funds that hold both Amazon and Walmart shares, however, trended downward.
Consumer Staples Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>) slipped 0.01%, while Fidelity MSCI Consumer Staples Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FSTA#NYSE">FSTA</a>) and Vanguard Consumer Staples ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VDC#NYSE">VDC</a>) both dipped 0.08%. ProShares Ultra Consumer Staples (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SZK#NYSE">SZK</a>) declined 0.70% and Van Eck Retail ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RTH#NASDAQ">RTH</a>) slipped 0.19%.
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</ul>
Image: Shutterstock

AMZN

Amazon Set To Top Last Year's Prime Day Results Due To Early Deals, Analysts Say

Stocks gave varied reactions on Friday morning to the June <a href="https://www.benzinga.com/economics/macro-economic-events/24/07/39748331/june-producer-inflation-exceeds-forecasts-restrains-investor-euphoria-following-c">Producer Price Index </a>from the U.S. Bureau of Labor Statistics rising 0.2% on a monthly basis.
<h3 class="wp-block-heading">June PPI Report: Key Highlights</h3>
<ul>
<li>In June, the headline PPI for final demand rose by 0.2% month-over-month, rebounding sharply from the upwardly revised flat reading in May and surpassing economists' expectations – as tracked by TradingEconomics – of a 0.1% increase.</li>
<li>The June rise in the index for final demand is attributed to a 0.6% monthly increase in prices for final demand services, while the index for final demand goods decreased by 0.5%.</li>
<li>The 2.6% annual surge in the headline number represented a 0.2 percentage point increase from the upwardly revised May print, and topped estimates of 2.3%.</li>
<li>The core PPI – which tracks prices for final demand less foods, energy, and trade services – advanced at a 0.4% monthly pace, advancing from May's upwardly revised 0.3% growth and surpassing estimates of 0.2%.</li>
<li>On an annual basis, the core PPI climbed by 3.1%, up from the previous 2.3% and marking the highest rate of increase since April 2023.</li>
</ul>
Also Read: <a href="https://www.benzinga.com/markets/23/07/33219704/more-inflation-cheer-as-june-ppi-lighter-than-expected-lifting-markets-ahead-of-fridays-bank-earning">More Inflation Cheer As June PPI Lighter Than Expected, Lifting Markets Ahead Of Friday&#8217;s Bank Earnings</a>
Before the <a href="https://www.bls.gov/news.release/ppi.nr0.htm">PPI </a>release, markets assigned a 6.7% probability of a rate cut to 5.00%-5.25% in July, a 91.7% chance of maintaining that range in September, and a 54.6% probability of a further cut to 4.75%-5.00% in November, according to the CME FedWatch Tool.
Treasury yields gave mixed reactions to the PPI data. The rate-sensitive two-year yield slipped to 4.485% before the market open, while the long-dated 10-year yield ticked up to 4.205%. The iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) slid 0.37%. The dollar fell slightly.
Gold, as tracked by the SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>), slipped 0.25%.
The S&amp;P 500 index was up 0.65%, while the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), which tracks the S&amp;P 500, ticked up 0.19% on Friday morning.
The tech-heavy Nasdaq Composite was up 0.71% on Friday morning to 18,412, while the Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) picked up 0.15%.
Price Action: Retailers gave mixed reactions to the PPI data. Walmart Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>) was 0.42% lower at $69.48, while Amazon.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) slipped 0.32% to $194.42.
SPDR S&amp;P Retail ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XRT#NYSE">XRT</a>) ticked 1.35% higher, while VanEck Retail ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RTH#NASDAQ">RTH</a>) gained 0.45% and Direxion Daily AMZN Bull 2X Shares (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZU#NASDAQ">AMZU</a>) declined 0.95% on Friday morning.
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</ul>
Photo: Shutterstock

Econ #s

Federal Reserve

iShares Trust Barclays 20+ Year Treasury Bond Fund

Stocks Show Mixed Reactions To June Producer Inflation Data

Target Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TGT#NYSE">TGT</a>) is reportedly intensifying its efforts to combat shoplifting by lowering the threshold for staff to intervene in thefts.
Employees can now act on theft incidents valued at $50 or more, a reduction from the previous $100 limit. This new guideline will be implemented this summer, according to a report from <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-06-27/target-tgt-changes-shoplifting-policy-for-workers-to-stop-thefts?srnd=industries-v2&amp;sref=TBDibEcD" rel="noreferrer noopener">Bloomberg</a>.
The adjustment is one of several measures Target is taking to address theft, which has significantly impacted its <a target="_blank" href="https://www.benzinga.com/news/earnings/24/05/38961424/why-is-retail-giant-target-stock-plunging-today" rel="noreferrer noopener">profit margins in recent quarters.</a>
The report added that the company, which operates nearly 2,000 stores across the U.S., expects to stabilize these losses this year.
The report cited a Target spokesperson, who stated that the company is making substantial progress in tackling theft through various in-store actions and collaboration with policymakers and communities.
&#8220;Our priority remains ensuring the safety of the team and guests, while maintaining the positive experience Target shoppers expect,&#8221; the spokesperson said.
Also Read: <a target="_blank" href="https://www.benzinga.com/trading-ideas/movers/24/06/39454894/target-and-shopify-team-up-new-merchants-and-products-coming-to-target-plus" rel="noreferrer noopener">Target And Shopify Team Up: New Merchants And Products Coming To Target Plus</a>
Retailers have different policies for handling shoplifters, with thresholds ranging from $25 to $100.
Brand Elverston, an industry consultant and former director of asset protection at Walmart Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>), noted that staff typically avoid physical confrontation and that response depends on law enforcement capacity, per the report.
Some states have high limits for prosecuting shoplifting, with California decriminalizing theft under $950, which critics argue encourages organized retail crime.
In response to rising theft, U.S. retailers have increased security measures, including hiring guards, installing more cameras, and altering self-checkout systems.
Items prone to theft, such as those easily sold online, have impacted sales and profits. Last year, Target closed nine stores in four states to mitigate losses and has since been <a target="_blank" href="https://www.benzinga.com/markets/equities/23/12/36329428/targets-decision-to-close-9-stores-due-to-theft-violence-under-microscope-report-reveals-crime-h" rel="noreferrer noopener">locking up frequently stolen products and upgrading self-checkout technology.</a>
Target stock has gained more than 10% in the past 12 months. Investors can gain exposure to the stock via&nbsp;Consumer Staples Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>).
Price Action: TGT shares closed lower by 0.31% at $146.72 on Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next: <a href="https://www.benzinga.com/news/24/06/39316320/how-targets-innovative-strategy-resolves-a-multi-billion-dollar-inventory-crisis-report" target="_blank" rel="noreferrer noopener">How Target&#8217;s Innovative Strategy Resolves A Multi-Billion Dollar Inventory Crisis: Report</a>
Photo via Shutterstock

Media

Target Tightens Shoplifting Rules, Reduces Threshold To $50: Report

Consumers are <a href="https://www.benzinga.com/markets/equities/24/06/39338718/stocks-ease-tech-rises-bonds-eye-strongest-week-of-the-year-as-consumer-sentiment-sinks-in-june-">slightly more concerned </a>over the economy this month as they assess current business and labor market conditions, according to data released Tuesday.
The Conference Board said its Consumer Confidence Index dipped from 101.3 in May to 100.4 in June, while its Present Situation Index — based on consumers' gauge of current business and labor market conditions — improved from 140.8 last month to 141.5 in June.
But the nonprofit entity&#8217;s Expectations Index, which tracks consumers' short-term outlook for income, business and labor market conditions, fell from 74.9 in May to 73.0 in June. It has stayed below 80, the threshold which usually signals a recession ahead, for five straight months, the board said.
"Confidence pulled back in June but remained within the same narrow range that's held throughout the past two years, as strength in current labor market views continued to outweigh concerns about the future,&#8221; Dana M. Peterson, the board&#8217;s chief economist, said in a statement.
&#8220;However, if material weaknesses in the labor market appear, confidence could weaken as the year progresses.&#8221;
She said consumers &#8220;expressed mixed feelings this month&#8221; as their view of the present situation improved slightly as sentiment on the current labor market rose, but their assessment of current business conditions cooled. 
Also Read: <a href="https://www.benzinga.com/news/large-cap/24/06/39387497/walmart-enhances-walmart-to-compete-with-amazon-prime-key-differences-unveiled">Walmart Enhances Walmart+ To Compete With Amazon Prime: Key Differences Unveiled</a>
&#8220;Meanwhile, for the second month in a row, consumers were a bit less pessimistic about future labor market conditions,&#8221; she added.
&#8220;However, their expectations for both future income and business conditions weakened, weighing down the overall Expectations Index.&#8221;
The decline in confidence between May and June centered on consumers aged 35 to 54, according to Peterson.
&#8220;By contrast, those under 35 and those 55 and older saw confidence improve this month,&#8221; she said.
&#8220;No clear pattern emerged in terms of income groups. On a six-month moving average basis, confidence continued to be highest among the youngest (under 35) and wealthiest (making over $100K) consumers."
Consumer spending has been &#8220;the driving force&#8221; behind this economic expansion, but there are concerns about the consumer's willingness and ability to continue parting with money, Chris Zaccarelli, chief investment officer for Independent Advisor Alliance, said about the June Consumer Confidence Index.
&#8220;The drop in consumer confidence isn't welcome news from that perspective,&#8221; he said on Tuesday.
&#8220;Ultimately, we believe the bull market we are in isn't going to be derailed until either we go into recession or the Fed changes interest rate policy from potential cuts to actual hikes, so just expect volatility between now and the end of the year, but don't expect the bull market to end without a change in the economy or Fed posture.&#8221;
Price action: Walmart Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>) dropped 2.53% by mid-day on Tuesday, while Amazon.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) gained 1.13%. Home Depot Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HD#NYSE">HD</a>) declined 4.01%.
SPDR S&amp;P Retail ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XRT#NYSE">XRT</a>) slipped 0.96% by mid-day Tuesday as VanEck Retail ETF NASDAQ: RTH) fell 0.90% and Amplify Online Retail ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBUY#NYSE">IBUY</a>) gained 0.61%.
Read now: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/06/39420214/costco-stock-at-52-week-high-still-time-to-buy">Costco Stock At 52-Week High: Still Time To Buy?</a>
Photo: Shutterstock

Economics

IBUY

Consumer Confidence Declines As Worries Over Economy Persist

Shares of retail giant Target Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TGT#NYSE">TGT</a>) and Shopify Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SHOP#NYSE">SHOP</a>) are trading <a target="_blank" href="https://www.benzinga.com/premarket" rel="noreferrer noopener">higher premarket today</a>.
Target has announced a partnership with global commerce platform Shopify to feature a selection of popular merchants and their products on Target Plus, <a target="_blank" href="https://www.benzinga.com/pressreleases/24/06/n39451398/target-and-shopify-partner-to-help-consumers-discover-and-shop-an-expanded-assortment-on-target-co" rel="noreferrer noopener">its curated digital marketplace</a>.
This collaboration aims to expand Target Plus with new, trendy products and brands such as True Classic and Caden Lane, providing consumers with a broader array of affordable and high-quality options.
Target will also become the first major retailer to integrate select Shopify merchants&#8217; products into its physical stores in the coming months.
The initiative will allow shoppers to discover new brands in-store, enhancing their shopping experience with innovative products.
Shopify merchants in the U.S. can apply to sell on Target Plus through Marketplace Connect, an app facilitating seamless sales and order management on leading marketplaces.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/06/39316320/how-targets-innovative-strategy-resolves-a-multi-billion-dollar-inventory-crisis-report" rel="noreferrer noopener">How Target&#8217;s Innovative Strategy Resolves A Multi-Billion Dollar Inventory Crisis: Report</a>
Target Plus, launched in 2019, offers a curated collection of products reflecting Target&#8217;s quality and value. The platform features over 2 million products from numerous brands.
The partnership with Shopify aims to further expand this assortment, providing consumers with even more premium and direct-to-consumer brands.
Cara Sylvester, Target&#8217;s executive vice president and chief guest experience officer said, &#8220;Target Plus invites consumers to explore a curated collection of products from vendors we trust, so they can shop our assortment with confidence.&#8221;
Shopping on Target Plus allows consumers to enjoy their favorite Target perks, including 5% off with a Target Circle Card, free shipping on orders over $35, and free returns.
Target stock has gained more than 8% in the past 12 months. Investors can gain exposure to the stock via VanEck Retail ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RTH#NASDAQ">RTH</a>) and Consumer Staples Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>).
Price Action: TGT shares are trading higher by 0.60% at $147.00 and SHOP is up 1.63% at $66.10 in premarket at last check Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next: <a href="https://www.benzinga.com/markets/equities/24/06/39188408/walmart-sweetens-the-deal-for-hourly-employees-with-annual-bonuses-and-skill-upgrades-details" target="_blank" rel="noreferrer noopener">Walmart Sweetens The Deal For Hourly Employees with Annual Bonuses And Skill Upgrades: Details</a>
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SHOP

Target And Shopify Team Up: New Merchants And Products Coming To Target Plus

U.S. retail sales for May fell short of expectations, concerning economists, as it could signal a slowdown <a href="https://www.benzinga.com/news/econ-s/24/06/39378193/may-retail-sales-fall-short-suggest-weakening-consumer">in economic growth.</a>
The U.S. Census Bureau reported that sales ticked up 0.1% from April to May, missing expectations of a 0.2% month-on-month increase.
May sales, which totaled $703.1 billion, were up 2.3% from a year ago, while sales for the March 2024 to May 2024 period gained 2.9% from the same period a year earlier, the agency reported.
Nonstore retailers were up 6.8% from last year, while food services and drinking places were up 3.8 % from May 2023.
The market reacted calmly to the retail sales miss, as exchange-traded funds in the retail and food services sectors saw little movement by mid-morning on Tuesday. 
Price action: S&amp;P Retail ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XRT#NYSE">XRT</a>) remained unchanged, while VanEck Retail ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RTH#NASDAQ">RTH</a>) edged up 0.06% and Amplify Online Retail ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBUY#NYSE">IBUY</a>) gained 0.17%. Meanwhile, Invesco Food &amp; Beverage ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PBJ#NYSE">PBJ</a>) went up 0.30%, First Trust Nasdaq Food &amp; Beverage ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTXG#NASDAQ">FTXG</a>) slipped 0.38% and Veg Tech Plant-based Innovation &amp; Climate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EATV#NYSE">EATV</a>) gained 0.44%.
Major retailers had mixed reactions to the latest retail sales numbers. Walmart Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>) went up 0.35% by mid-morning on Tuesday, while Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) slipped 0.90% and The Home Depot, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HD#NYSE">HD</a>) picked up 1.31%.
Economists and financial experts weighed in on the latest retail sales data to explain the implications for the market.
Also read: <a href="https://www.benzinga.com/news/24/06/39381240/us-stocks-mixed-retail-sales-increase-0-1-in-may">US Stocks Mixed; Retail Sales Increase 0.1% In May</a>
Resilient consumer to the rescue
Chris Zaccarelli, chief investment officer, Independent Advisor Alliance,&nbsp;said retail sales came in really light on Monday morning and &#8220;while that may be good news for inflation hawks, it could be the beginning of a slowdown in growth,&#8221; which would hurt a lot more than a couple of interest rate cuts would help.
He said the resilient consumer has been &#8220;the big story of this bull market&#8221; and without them, the economy would have slowed or fallen into recession a long time ago.
Zaccarelli noted that stock prices are going up without the help of rate cuts because corporate profits and the economy continue to expand. 
&#8220;Without the consumer, this bull market is going to stall out, so investors need to see more consumer spending and not a material slowdown, which this report could be indicating,&#8221; he wrote.
Industrial Sector &#8216;In Low Gear&#8217;
Bill Adams, chief economist, Comerica Bank, remarked that industrial production was stronger than expected in May, but revisions were negative while capacity utilization was up on the month but still well below its 2022 peak.
He noted that the motor vehicle assembly rate &#8220;edged up a little&#8221; on the month and was 5% above its 2023 average.
&#8220;The industrial sector is operating in low gear, adding to forces pushing inflation lower,&#8221; he said.
&#8220;The big picture is that the industrial sector has been running cooler over the last year and a half.&#8221;
 He said that American consumers have shifted spending priorities toward experiences and away from things, weighing on demand for goods, and high interest rates are restraining business capital spending and demand for construction materials.
He noted that May retail sales figures suggested that real GDP continues to grow more slowly in the second quarter of this year than in the second half of 2023.
&#8216;Consumers Retrench&#8217;
Jeffrey Roach, chief economist at LPL Financial, noted that restaurant spending fell in May &#8220;as consumers retrench&#8221; but that motor vehicle sales rose as dealers increased incentives to entice consumers. He also said, however, that several retail categories such as furniture sales fell for the fourth time in six months as consumers pulled back purchases.
&#8220;Consumer spending is cooling in a fairly orderly fashion,&#8221; he wrote. &#8220;So far, the economy could pull off a soft landing, especially if the Fed is quick to adjust policy as conditions change.&#8221;
&#8216;Analysts Concerned&#8217;
Quincy Krosby, chief global strategist at LPL Financial, noted that the latest retail sales report pushed Treasury yields lower by coming in weaker than expected, but the downward revision for two previous months has &#8220;analysts concerned&#8221; that lower and middle income wage earners are under pressure from higher prices.
&#8220;Should employment data, particularly initial unemployment claims, continue to indicate a more defined softening in the labor market, the Fed may &#8212; as suggested by Fed Chair [Jerome] Powell&#8211;need to recalibrate its timetable in terms of when to commence policy easing,&#8221; she wrote.
Read now: <a href="https://www.benzinga.com/top-stories/24/06/39383798/the-ai-big-10-10-ai-stocks-now-comprise-28-of-s-p-500-up-from-14-in-2023">The &#8216;AI Big 10&#8217;: 10 AI Stocks Now Comprise 28% Of The S&amp;P, Up From 14% In 2023</a>
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Economist React To May Retail Sales Data: 'Consumer Spending Is Cooling In A Fairly Orderly Fashion'

Amazon.com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) committed $1.4 billion to its Housing Equity Fund, enhancing affordable housing in Seattle, Nashville, and Washington metro areas.
The funds will create 14,000 affordable units in these locations, raising Amazon&#8217;s total housing pledge to $3.6 billion, Bloomberg <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-06-11/amazon-commits-1-4-billion-to-build-14-000-affordable-homes?srnd=technology-vp&amp;sref=TBDibEcD" rel="noreferrer noopener">cites</a> Amazon blog post on Tuesday.
In 2021, Amazon earmarked $2 billion for low-interest loans and grants, joining other tech companies in making housing more affordable, especially in expensive West Coast cities.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/05/39088449/amazon-boosts-prime-benefits-with-grubhub-partnership-takes-aim-at-walmart" rel="noreferrer noopener">Amazon Boosts Prime Benefits With Grubhub Partnership, Takes Aim At Walmart</a>
Critics had accused Amazon and other tech giants, including Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>), Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), and Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), of worsening regional housing shortages by bringing in highly paid engineers.
Amazon targets units for families earning 30% to 80% of each area&#8217;s median income, aiming to help those who don&#8217;t qualify for existing subsidies and can&#8217;t afford rising housing costs.
On a separate note, Amazon earmarked <a target="_blank" href="https://www.benzinga.com/markets/asia/24/06/39284404/amazon-to-invest-billions-in-taiwan-cloud-infrastructure-expanding-aws-presence-in-asia" rel="noreferrer noopener">billions of dollars</a> in Taiwan over the next 15 years to establish data centers to fulfill Asia&#8217;s increasing demand for cloud services.
Amazon proposes to launch an Amazon Web Services infrastructure region in Taiwan by 2025.
Analysts <a target="_blank" href="https://www.benzinga.com/news/24/04/38322252/amazon-analyst-predicts-lead-in-ai-revolution-with-strategic-cost-efficiency-and-tech-innovations" rel="noreferrer noopener">maintained their conviction</a> in Amazon&#8217;s generative AI moat, claiming the company to be one of the two to three winners of GenAI.
Amazon stock gained 48% in the last 12 months. Investors can gain exposure to the stock via Fidelity MSCI Consumer Discretionary Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDIS#NYSE">FDIS</a>) and VanEck Retail ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RTH#NASDAQ">RTH</a>).
Price Action:&nbsp;AMZN shares traded lower by 0.02% at $187.20 premarket at the last check on Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Amazon's $3.6B Pledge To Create 14K Affordable Homes in Key Metro Areas

Lowe&#8217;s Companies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LOW#NYSE">LOW</a>) shares are<a target="_blank" href="https://www.benzinga.com/movers" rel="noreferrer noopener"> trading slightly higher on Friday.</a>
The company has declared a quarterly cash dividend of&nbsp;$1.15&nbsp;per share, payable<a target="_blank" href="https://www.benzinga.com/pressreleases/24/05/n39110474/lowes-companies-inc-announces-5-increase-to-quarterly-cash-dividend" rel="noreferrer noopener"> Aug. 7 to shareholders of record as of&nbsp;July 24</a>.
This represents a 5% increase over the company&#8217;s previous dividend of&nbsp;$1.10&nbsp;per share.
&#8220;Today&#8217;s dividend increase reflects the Board&#8217;s confidence in our growth strategy and commitment to disciplined capital allocation that delivers long-term shareholder value,&#8221; said&nbsp;Marvin R. Ellison, Lowe&#8217;s chairman, president and CEO.
Last week, the company&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/05/n38935101/lowes-reports-first-quarter-2024-sales-and-earnings-results" rel="noreferrer noopener">reported&nbsp;better-than-expected first-quarter FY24 earnings.</a> The company reported a first-quarter FY24 sales decline of 4.4% year-on-year to $21.364 billion, beating the analyst consensus estimate of $21.123 billion.
Lowe&#8217;s repurchased about 3.0 million shares for $743 million and paid $633 million in dividends&nbsp;in the quarter.
Since its public debut in 1961, Lowe&#8217;s has consistently issued quarterly cash dividends, with over 25 consecutive years of dividend increases.
According to&nbsp;<a target="_blank" href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw" rel="noreferrer noopener">Benzinga Pro</a>, LOW stock has gained 8% in the past year. Investors can gain exposure to the stock via&nbsp;Northern Lights Fund Trust IV FMC Excelsior Focus Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FMCX#NYSE">FMCX</a>) and&nbsp;VanEck Retail ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RTH#NASDAQ">RTH</a>).
Lowe&#8217;s sees FY24 revenue of $84 billion-$85 billion, against the Street view of $84.51 billion.
Lowe&#8217;s&nbsp;expects FY24 EPS of $12.00-$12.30 against the consensus of $12.21. LOW expects&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">FY24 comparable sales to decline 2% – 3%.</a>
Price Action: LOW shares are trading higher by 0.72% to $217.01&nbsp;at last check Friday.
Read Next: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/05/39095651/chewy-impresses-with-strong-q1-results-analysts-envision-stabilized-customer-growth" target="_blank" rel="noreferrer noopener">Chewy Impresses With Strong Q1 Results; Analysts Envision Stabilized Customer Growth And Enhanced Profitability Ahead</a>
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What's Going On With Home Retailer Lowe's Shares After Raising Dividend By 5%?

Amazon.Com, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) now offers Prime members <a href="https://www.benzinga.com/topic/food-delivery">free Grubhub subscriptions</a>, enhancing its $139-a-year loyalty program. Previously, Prime members received a yearlong Grubhub subscription with free delivery on orders over $12.
This new deal makes Grubhub a permanent Prime benefit, allowing non-Prime users to place Grubhub orders through Amazon&#8217;s website and app, CNBC <a target="_blank" href="https://www.cnbc.com/2024/05/30/amazon-prime-grubhub-subscription.html" rel="noreferrer noopener">reports</a>.
This deal could make Grubhub more appealing to potential buyers, as Just Eat Takeaway has been trying to sell it since its acquisition, Reuters cites analyst Panmure Gordon.
In 2023, about 167 million Amazon customers in the U.S. subscribed to Prime, representing 71% of all users in the country.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/30083749/newplot-38.png" alt="" class="wp-image-362945" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/30083749/newplot-38.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/30083749/newplot-38-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Amazon has been increasing Prime benefits to attract and retain members amid competition from Walmart Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>) and Target Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TGT#NYSE">TGT</a>).
Recent additions include a discounted One Medical membership, fast shipping, and video streaming.
In July 2022, Amazon <a target="_blank" href="https://www.benzinga.com/22/07/27972843/amazon-takes-bite-out-of-grubhub-offers-prime-members-free-perks" rel="noreferrer noopener">secured rights to</a> a 2% stake in Grubhub, potentially increasing to 15% based on performance factors.
After its first-quarter performance, analysts flagged Amazon&#8217;s <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/05/38551496/amazons-genai-could-generate-multi-billion-revenue-run-rate-jpmorgan" rel="noreferrer noopener">retail margin expansion</a> and GenAI revenue as major upside drivers. According to analysts, the company&#8217;s scale and strong cash flow enable substantial investments while expanding margins.
Amazon stock gained 50% in the last 12 months. Investors can gain exposure to the stock via VanEck Retail ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RTH#NASDAQ">RTH</a>) and ProShares Long Online/Short Stores ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CLIX#NYSE">CLIX</a>).
Now Read: <a href="https://www.benzinga.com/markets/equities/24/05/39085465/us-q1-economic-growth-downwardly-revised-to-1-3-consumer-spending-falters">US Q1 Economic Growth Downwardly Revised To 1.3%: Consumer Spending Falters</a>
Photo: rblfmr/Shutterstock

Restaurants

CLIX

Amazon Boosts Prime Benefits With Grubhub Partnership, Takes Aim At Walmart

Target Corp&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TGT#NYSE">TGT</a>) is reportedly extending its reach beyond its own stores by expanding sales of its private-label brands at other retailers.
Target is expanding of its Cat &amp; Jack children's brand at&nbsp;Hudson's Bay Co. in Canada, offering swimwear, outerwear, and shoes alongside apparel, according to a&nbsp;<a target="_blank" href="https://www.bloomberg.com/news/articles/2024-05-06/target-tgt-to-expand-sales-of-cat-jack-in-house-goods-to-other-retailers?srnd=homepage-americas&amp;sref=TBDibEcD" rel="noreferrer noopener">report&nbsp;</a>from&nbsp;Bloomberg.
The move comes after positive feedback, with the merchandise driving increased purchases, according to the report.
The company is considering opportunities to sell its products to retailers in Europe and the Americas. The report further quotes Chief Growth Officer Christina Hennington who emphasized that while expanding globally, Target&#8217;s priority remains its U.S. customers.
Target aims to rebound from declining sales by broadening its private-label offerings, capitalizing on their higher margins.
The retailer faces challenges from reduced consumer spending and controversies surrounding certain products.
Also Read:<a target="_blank" href="https://www.benzinga.com/markets/equities/24/04/38142678/target-introduces-truscan-tech-to-combat-self-checkout-theft-report" rel="noreferrer noopener">&nbsp;Target Introduces TruScan Tech To Combat Self-Checkout Theft: Report</a>
The retailer&#8217;s comparable sales declined 4.4% in the fourth quarter, reflecting comparable store sales&nbsp;<a target="_blank" href="https://www.benzinga.com/news/earnings/24/03/37478996/why-is-target-stock-trading-higher-today" rel="noreferrer noopener">declines of 5.4% and comparable digital sales decline of 0.7%.</a>
Store brands like Cat &amp; Jack contribute significantly to Target&#8217;s revenue, with over $3 billion in annual sales. The report further noted the company plans to expand its store brands and introduce new lines while emphasizing exclusive partnerships to drive sales.
Target is banking on store expansion, a revamped loyalty program, and exclusive offerings to boost performance.&nbsp;
Target's strategy mirrors competitors like&nbsp;Walmart Inc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>) and&nbsp;Kroger Co&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KR#NYSE">KR</a>), focusing on higher-margin private-label products.
The recent deal with Hudson's Bay marks a return to Canada after Target&#8217;s previous exit from the market.
Target stock has gained nearly 1% in the last 12 months. Investors can gain exposure to the stock via&nbsp;VanEck Retail ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RTH#NASDAQ">RTH</a>) and&nbsp;Consumer Staples Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>).
Price Action: TGT shares traded higher by 0.07% at $158.15 premarket Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next: <a href="https://www.benzinga.com/general/space/24/05/38553398/starlink-is-for-sale-at-target-consumers-have-another-way-to-buy-satellite-internet-from-elon-musk" target="_blank" rel="noreferrer noopener">Starlink Is For Sale At Target: Consumers Have Another Way To Buy Satellite Internet From Elon Musk</a>
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Target's Ambitious Growth Beyond Borders: Reportedly Broadens Sales Horizons Beyond Own Stores

The Home Depot, Inc.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HD#NYSE">HD</a>) disclosed a definitive agreement to acquire SRS Distribution Inc. for a total enterprise value (including&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/03/n37976986/the-home-depot-announces-agreement-to-acquire-srs-distribution-a-leading-specialty-trade-distribut" rel="noreferrer noopener">net debt) of about $18.25 billion</a>.
SRS&#8217;s 2,500-plus professional sales force and 760-plus branch network across 47 states, together with its 4,000-plus truck fleet and jobsite delivery capabilities, will enable Home Depot to extend its offering to residential specialty trade pros.&nbsp;
SRS is expected to accelerate Home Depot&#8217;s growth with the residential professional customer and aid it in better serving complex project purchase occasions with the renovator/remodeler.
With this buyout, the company now sees its total addressable market stand at approximately $1 trillion, an increase of roughly $50 billion.
Ted Decker, chair, president, and CEO, said, &#8220;SRS&#8217;s branch network, coupled with The Home Depot&#8217;s 2,000+ U.S. stores and distribution centers, comprehensive product offering, and extensive pro brands, provides the residential pro customer with more fulfillment and service options than ever before.&#8221;
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/02/37362705/home-depot-reaches-new-52-week-high-after-lowes-q4-success-is-it-time-for-investors" rel="noreferrer noopener">Home Depot Reaches New 52-Week High After Lowe&#8217;s Q4 Success &#8211; Is It Time For Investors To Cash In?</a>
This transaction is anticipated to be dilutive to Home Depot&#8217;s GAAP EPS due to amortization expense but accretive from a cash EPS perspective in the first year, post-closure (excluding synergies).
The company plans to fund the deal through cash on hand and debt. The acquisition is expected to close by the end of fiscal 2024, subject to customary closing conditions.
Home Depot held $3.76 billion in cash and equivalents&nbsp;<a target="_blank" href="https://www.benzinga.com/news/earnings/24/02/37209358/home-depots-q4-performance-revenue-and-eps-beat-dividend-hike-and-more" rel="noreferrer noopener">as of January 28, 2024</a>.&nbsp;
Investors can gain exposure to the stock via&nbsp;IShares U.S. Consumer Focused ETF&nbsp;(BATS:<a class="ticker" href="https://www.benzinga.com/stock/IEDI#BATS">IEDI</a>) and&nbsp;VanEck Retail ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RTH#NASDAQ">RTH</a>).
Price Action: HD shares are trading lower by 0.61% at $383.54 on the last check Thursday.
Photo via Shutterstock

Home Depot Scores Big With $18.25B SRS Acquisition, Boosts Addressable Market To $1T

Real Estate is best positioned to benefit from rate cuts, SA Sentiment poll shows

Retail sales are expected to be up 0.3% in October, real consumption up 2%

It appears that Wall Street has put its election jitters aside following Donald Trump's resounding victory, with a number of markets experiencing an impressive relief rally.

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