Latest news with #JosephFeldman
Business Insider
3 days ago
- Business
- Business Insider
DLTR, FIVE, or WMT: Which Retail Stock Is the Best Pick?
Retailers have been under pressure due to the impact of macro uncertainty on consumers' discretionary spending and tariff woes. Nonetheless, Wall Street is bullish on some retail stocks due to their ability to thrive despite short-term challenges. Using TipRanks' Stock Comparison Tool, we placed Dollar Tree (DLTR), Five Below (FIVE), and Walmart (WMT) against each other to find the best retail stock, according to Wall Street analysts. Confident Investing Starts Here: Dollar Tree (NASDAQ:DLTR) Dollar Tree stock has risen 20.4% year-to-date, driven by the discount store chain's efforts to improve its business and the sale of the Family Dollar business that weighed on the company's overall performance in recent years. Investors are also optimistic about Dollar Tree's strategic initiatives, including its multi-price point strategy. The retailer finished Fiscal 2024 with approximately 2,900 3.0 multi-price format stores, and is targeting 5,200 3.0 format stores by the end of 2025. Dollar Tree is scheduled to announce its results for the first quarter of Fiscal 2025 on June 4. Wall Street expects the company to report a 15.4% decline in EPS (earnings per share) to $1.21, while revenue is estimated to fall by more than 40% to $4.54 billion. These estimates reflect the impact of the sale of the Family Dollar business, weakness in consumer spending on discretionary items, and tariff-related pressures. What Is the Target Price for DLTR Stock? Heading into the Q1 FY25 results, Telsey analyst Joseph Feldman increased the price target for Dollar Tree stock to $95 from $82 and reiterated a Hold rating on the stock. The analyst stated that he is maintaining his Q1 2025 and 2025 estimates, thanks to DLTR's increased focus on productivity and profitability due to improving value, convenience, and discovery at its stores. He also expects the retailer to gain from its strategic initiatives, including plans to open about 400 new stores in 2025, expand its multi-price point assortment, and refresh its merchandise. While Feldman highlighted Dollar Tree's strong balance sheet and potential share repurchases, he believes tariff risk remains elevated in H2 2025 and 2026, given that the company directly imports about 40% of its total retail value purchases, mainly from China. Although the company plans to manage and mitigate a large part of tariffs, Feldman believes that overall exposure to imports is high, and the uncertainty related to changes in government policies remains a risk. Wall Street has a Moderate Buy consensus rating on Dollar Tree stock based on six Buys, 11 Holds, and one Sell recommendation. The average DLTR stock price target of $85.29 implies a downside risk of about 5.5% from current levels. Five Below (NASDAQ:FIVE) Five Below is a value retailer that targets teens and pre-teens with merchandise that is mostly priced between $1 and $5, with some items priced beyond $5. FIVE stock has risen 11% so far in 2025, driven by a favorable update on Q1 FY25 results. Also, the temporary agreement between the U.S. and China to slash tariffs also improved investor sentiment. The company is scheduled to announce its Q1 FY25 earnings on June 4. In early May, Five Below raised its Q1 FY25 guidance, with net sales expected to come in at about $967 million compared to the prior guidance of $905 million to $925 million, and comparable sales estimated to rise about 6.7% compared to the prior guidance of about flat to 2% increase. Further, Five Below expects Q1 FY25 adjusted EPS in the range of $0.82 to $0.84, up from the prior outlook of $0.50 to $0.61. Meanwhile, Wall Street expects Five Below to report EPS of $0.78, reflecting a 30% year-over-year growth. Revenue is expected to grow 18.5% to $961.25 million. Is Five Below a Good Stock to Invest? Following the Q1 update, Citi analyst Paul Lejuez increased the price target for Five Below stock to $121 from $80 and reaffirmed a Hold rating. The 5-star analyst noted that the company's revised Q1 FY25 comps guidance was well ahead of the previous outlook. Lejuez added that with comparisons easing significantly in Q2 FY25, he sees the possibility of Five Below delivering double-digit comparable sales growth, driven by its efforts to improve its assortment and simplify the pricing strategy. Further, the analyst expects Five Below to maintain its Fiscal 2025 outlook despite tariffs. With six Buys, 13 Holds, and one Sell recommendation, Wall Street has a Hold consensus rating on Five Below stock. The average FIVE stock price target of $98.53 implies about 15.6% upside potential from current levels. FIVE stock has advanced 11% so far in 2025. Walmart (NYSE:WMT) Big-box retailer Walmart delivered better-than-expected earnings for the first quarter of Fiscal 2026, though sales slightly lagged expectations. The company attributed its performance to higher transaction counts and unit volumes, along with robust e-commerce growth. While Walmart is not immune to tariffs, it is considered more resilient compared to its rivals due to its greater exposure to groceries and essentials compared to rivals who sell more discretionary goods. Moreover, the retailer is able to attract customers with its lower prices. Walmart is also strengthening customer engagement with faster deliveries, store remodels, and a wider assortment of brands. Is Walmart Stock a Buy, Hold, or Sell? In reaction to the Q1 FY26 print, Raymond James analyst Bobby Griffin reiterated a Buy rating on Walmart stock with a price target of $105. The 5-star analyst noted that Walmart exceeded Q1 estimates and reaffirmed its FY26 guidance despite heightened macro and tariff-related uncertainty. Griffin believes that Walmart is uniquely positioned to navigate the ongoing challenges, thanks to its diversified sourcing, replenishable assortment, disciplined inventory planning, and a structurally advantaged model across e-commerce and supply chain. He added that Walmart continues to lean into high-margin revenue streams, with advertising, membership, and marketplace all delivering strong growth and expanding contribution to profit. Griffin highlighted that Walmart's e-commerce business turned profitable in the U.S. and globally for the first time, a key milestone that supports long-term EBIT margin expansion. Over the long term, Griffin continues to view Walmart as a well-positioned retailer that can grow its operating income faster than sales, as the profit mix shifts further toward digital, data, and automation-enabled initiatives. Overall, Walmart scores a Strong Buy consensus rating based on 28 Buys and two Holds. The average WMT stock price target of $109.38 implies about 11% upside potential from current levels. WMT stock has risen 9.3% year-to-date. Conclusion Wall Street is highly bullish on Walmart, cautiously optimistic on Dollar Tree, and sidelined on Five Below stock. Currently, analysts see downside risk in Five Below and Dollar Tree stocks, while they expect further upside in WMT stock. Walmart's value proposition, robust e-commerce growth, and huge scale are some of the strengths that support analysts' bullish thesis.
Yahoo
27-05-2025
- Business
- Yahoo
Telsey Advisory Raises PT on Dollar General (DG), Keeps Market Perform Rating
On May 27, Telsey Advisory Group increased the price target on Dollar General Corporation (NYSE:DG)'s stock to $100 from the prior target of $85. The firm kept its 'Market Perform' rating. Joseph Feldman, analyst at Telsey Advisory Group, emphasised the company's early benefits from strategic initiatives including store remodels, digital and media strategies, product assortment updates, and a Back to Basics approach. A busy shopping aisle filled with discounted items in a retail store. As per the analyst, such efforts can bolster Dollar General Corporation (NYSE:DG)'s performance amidst economic pressures on the core demographic of lower-income households. Over the medium term, the analyst believes that Dollar General Corporation (NYSE:DG) might evolve into a mature retailer, pivoting away from rapid expansion and moving towards improving in-store experiences and operational efficiency. Dollar General Corporation (NYSE:DG) believes that its Back to Basics work continues to resonate with customers, evidenced by increased customer satisfaction scores and strong market share gains. Entering 2025, the company is optimistic regarding the Pop Shelf banner and its opportunity to fuel improvements in sales results, given that the customers' feedback on the brand and shopping remains strong. Dollar General Corporation (NYSE:DG) plans to build on its strength to increase sales with the help of initiatives focused on brand partnerships and new and expanded categories. For FY 2025, it expects net sales growth of between ~3.4% - 4.4%. While we acknowledge the potential of DG to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DG and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27-05-2025
- Business
- Yahoo
Telsey Advisory Maintains Market Perform Rating on Dollar Tree (DLTR), Lifts PT
On May 27, Telsey Advisory Group analyst Joseph Feldman upped the price target on Dollar Tree, Inc. (NASDAQ:DLTR)'s stock to $95.00 from $82.00, while maintaining a 'Market Perform' rating. The analyst's statement exhibited the company's strategic initiatives. The company expects capital expenditures to be between $1.2 billion - $1.3 billion, including ~400 new Dollar Tree store openings. A shopper browsing through a discount retailers merchandise aisle filled with a wide variety of items. The analyst lauded Dollar Tree, Inc. (NASDAQ:DLTR)'s expansion of multi-price point assortment, which is being integrated throughout categories and aisles in the 3.0 format. Notably, the company ended FY 2024 with ~2,900 Dollar Tree 3.0 multi-price format stores, consisting of 2,600 conversions and 300 new stores. Dollar Tree, Inc. (NASDAQ:DLTR) continues to focus on enhancing value, convenience, and discovery for its customers, which can fuel productivity and profitability. The analyst further highlighted the strength of Dollar Tree, Inc. (NASDAQ:DLTR)'s balance sheet, reflecting that it is well-placed to support potential share repurchases. The company has $1.3 billion of cash and cash equivalents at year-end, with no revolver or commercial paper balances. Its leverage stands below 2.5x. The sales from Dollar Tree are expected to be between $4.5 billion - $4.6 billion in Q1 2025. While we acknowledge the potential of DLTR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DLTR and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None. Sign in to access your portfolio
Globe and Mail
24-05-2025
- Business
- Globe and Mail
‘Don't Buy Yet,' Say Top Analysts after Downgrading Target Stock (TGT)
Target (TGT) has been hit with rating downgrades from several Top-rated analysts, citing concerns over weak sales, margin pressures, and macro uncertainty. The rating cuts came after TGT's lower-than-expected first quarter results, released earlier this week. Also, declining sales and margin pressures resulted in a lower full-year outlook. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter The company's key challenges include higher markdowns and digital fulfillment costs, which hurt profitability. Also, changes to its diversity, equity, and inclusion (DEI) policies have led to consumer backlash and boycotts. Analysts Downgrade Ratings amid Sales Struggles BofA Securities analyst Robert Ohmes downgraded Target stock to Hold from Buy, slashing the price target to $105 from $145. The five-star analyst sees ongoing sales struggles, leading to higher markdowns and margin pressures, making a recovery uncertain. Despite Target's stock trading near 10-year lows, Ohmes believes the uncertainty outweighs the valuation appeal, prompting the downgrade. At the same time, Telsey Advisory analyst Joseph Feldman also cut Target's rating to Hold from Buy, with a price target cut from $130 to $110. Feldman cited a challenging macro environment, inconsistent execution, and tariff-related risks as key concerns. The Top analyst also noted that his confidence was shaken by weak Q1 2025 results, along with lowered guidance for 2025. Another analyst, Melius from Karen Short, downgraded Target to Hold from Buy. Is Target a Buy or Sell? Turning to Wall Street, TGT stock has a Hold consensus rating based on 10 Buys, 21 Holds, and two Sells assigned in the last three months. At $105.46, the average Target stock price target implies a 10.94% upside potential. See more TGT analyst ratings
Yahoo
25-04-2025
- Business
- Yahoo
AMZN Poised to Benefit from Market Share Gains, New Businesses, Analyst Says
Among the factors that are expected to boost Amazon's (AMZN) top-and-bottom-line growth this year are its market-share gains and its move into relatively new businesses, including groceries, pharmacy and home goods, according to Joseph Feldman, an analyst at Telsey. The latter firm is an investment bank and equity-research firm. Feldman cut his price target on AMZN to $235 from $275 but kept an Outperform rating on the name. AMZN's Positive Catalysts Among the factors that will help AMZN gain "profitable market share" are its Prime program, its ties to small businesses, and the strength of its technology, Feldman asserted. In addition to groceries, pharmacy, and home goods, the conglomerate will benefit from expanding its fashion and logistics offerings, according to the analyst. The growth of the company's highly profitable cloud-infrastructure and ad business will help it boost its bottom line, Feldman noted. Challenges for AMZN Tariffs could reduce demand for AMZN's consumer-facing products and raise its costs, Feldman warned. And the company's meaningful exposure to China could be negative as the conflict between Washington and Beijing continues, he added. While we acknowledge the potential of AMZN, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires Disclosure: The author owns shares of AMZN but has no intention of trading them in the next 48 hours. This article is originally published at Insider Monkey. Sign in to access your portfolio
