The three major U.S. equity indexes closed higher on Friday. The Dow Jones industrials added 1.27%, while the S&P 500 rose by 1.73% and the Nasdaq climbed 2.09%. All 11 sectors ended the day higher, led by consumer cyclicals (2.3%) and technology (2.0%). For the week, the Dow was up 2.9%, but it remains down 7.1% for the year to date. The S&P 500 was up 3.3% last week (down 10.2% year to date), and the Nasdaq was up 3.1% for the week (down 16.6% year to date).
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In addition to the weekly report on claims for jobless benefits, this week brings fresh housing and retail sales data. All three indexes traded lower in Monday’s premarket session.

After markets closed Friday, Sundial Growers, now named SNDL, reported better-than-expected revenue but badly missed the consensus estimate for the quarterly loss per share. The stock traded down about 1.7% in Monday’s premarket.

Before U.S. markets opened on Monday, Chinese electric vehicle maker Li Auto missed both revenue and loss-per-share estimates. The stock was down about 5.6% in premarket trading.

Bitfarms missed both earnings and revenue estimates. The stock traded down about 5.5% in Monday’s premarket.

We have already previewed earnings due out before U.S. markets open on Tuesday from Genius Sports, Home Depot, Sea Limited and Walmart.

Here is a look at three companies scheduled to report quarterly results first thing Wednesday morning.

Lowe’s

Over the past 12 months, the share price of Lowe’s Companies Inc. (NYSE: LOW) has increased by about 7.5%. After posting a 52-week high in mid-December, the shares slid by a third to a yearly low in late June. Since then, the shares have added almost 20%.

Lowe’s larger rival, Home Depot reports quarterly results Tuesday morning, and that report will influence investor sentiment on Lowe’s. Some consumers are ditching home improvement projects and spending on travel, according to many analysts, while others are worried about inflation and job security.

Of 30 analysts covering the company, 21 have a Buy or Strong Buy rating. Another nine rate the shares at Hold. At a recent price of around $206.50 a share, the upside potential to a median price target of $230.50 is 11.6%. At the high price target of $300.00, the upside potential is 45.3%.

Fiscal second-quarter revenue is forecast at $28.17 billion, which would be up 19.1% sequentially and by 2.2% year over year. Adjusted earnings per share (EPS) are expected to come in at $4.59, up 30.8% sequentially and 8.0% higher year over year. For the full 2023 fiscal year ending in January, analysts expect EPS of $13.41, up 11.4%, on sales of $97.52 billion, up 1.3%.

Lowe’s stock trades at 15.4 times expected 2023 EPS, 14.3 times estimated 2023 earnings of $14.47 and 12.6 times estimated 2024 earnings of $16.39 per share. The stock’s 52-week trading range is $170.12 to $263.31, and the company pays an annual dividend of $3.20 (yield of 2.03%). Total shareholder return for the past year is 9.3%.

Target Corp. (NYSE: TGT) stock has tumbled by about 34% since mid-May, when the company warned that inventory overhang would weigh on second-quarter results. The stock plunged 40% on the report. Shares have staged something of a comeback since dropping to a 52-week low in mid-June, largely due to less concern about inflation and recession. There is still little evidence that Target has solved its inventory forecasting issues yet, and investors will want to hear what the company plans to do to get margins back up.
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Of 31 analysts covering the company, 21 have a Buy or Strong Buy rating and 10 others rate the stock at Hold. At a share price of around $172.50, the upside potential based on a median price target of $185.00 is about 7.2%%. At the high price target of $231.00, the upside potential is nearly 40%.

The consensus second-quarter 2023 revenue estimate is $26.09 billion, up 3.7% sequentially and 3.7% higher year over year. Adjusted EPS are forecast at $0.71, down 67.4% sequentially and by 80.5% year over year. For the full year ending in January, analysts expect Target to report EPS of $8.40, down 38%, on sales of $109.84 billion, up 3.6%.

Target stock trades at 20.5 times expected 2023 EPS, 14.2 times estimated 2024 earnings of $13.52 and 12.8 times estimated 2025 earnings of $13.44 per share. The stock’s 52-week range is $137.16 to $268.98. The company pays an annual dividend of $4.32 (yield of 2.5%). Total shareholder return for the past year was negative 33.1%.

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TJX Companies

The TJX Companies Inc. (NYSE: TJX) operates around 3,000 retail stores worldwide under well-known names like T.J. Maxx, Marshall’s and HomeGoods. Over the past 12 months, the share price has declined by 8.5%. Since posting its 52-week high in early January, the stock is down about 14%. Earlier this month, analysts at Goldman Sachs initiated coverage of TJX with a rating of Neutral and a price target of $70, implying an upside of around 12% from the then-current price.

Of 24 analysts covering the company, 17 have a Buy or Strong Buy rating and the others rate the stock at Hold. At a share price of around $65.50, the upside potential based on a median price target of $73.00 is 11.5%. At the high price target of $95.00, the upside potential is 45%.

Second-quarter revenue is forecast to come in at $12.07 billion, down 16.3% sequentially and flat year over year. Adjusted EPS are pegged at $0.67, up 9.3% sequentially and by 4.7% year over year. For the 2023 fiscal year ending in January, analysts expect EPS of $3.16, up 10.7%, on sales of $51.27 billion, up 5.6%.

TJX’s stock trades at 20.7 times expected 2023 EPS, 18.2 times estimated 2024 earnings of $3.59 and 16.5 times estimated 2025 earnings of $3.97 per share. The stock’s 52-week range is $53.69 to $77.35. The company pays an annual dividend of $1.18 (yield of 1.8%). Total shareholder return for the past 12 months was negative 6.9%.

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