The Kroger Co. operates as a food and drug retailer in the United States. The company operates combination food and drug stores, multi-department stores, marketplace stores, and price impact warehouses. Its combination food and drug stores offer natural food and organic sections, pharmacies, general merchandise, pet centers, fresh seafood, and organic produce; and multi-department stores provide apparel, home fashion and furnishings, outdoor living, electronics, automotive products, and toys. The company's marketplace stores offer full-service grocery, pharmacy, health and beauty care, and perishable goods, as well as general merchandise, including apparel, home goods, and toys; and price impact warehouse stores provide grocery, and health and beauty care items, as well as meat, dairy, baked goods, and fresh produce items. It also manufactures and processes food products for sale in its supermarkets and online; and sells fuel through fuel centers. The Kroger Co. was founded in 1883 and is based in Cincinnati, Ohio.

Kroger Company (The)

CVS Health’s CVS Pharmacy & Consumer Wellness (“PCW”) unit includes its retail and long-term care pharmacy operations and related pharmacy services, as well as its retail front store operations. It also provides pharmacy fulfillment services to support the Health Services segment’s specialty and mail order pharmacy offerings. For several quarters, the segment’s main challenge has been the continued pharmacy reimbursement pressure stemming from managed care organizations, pharmacy benefit managers (PBMs) and governmental and other third-party payors working to reduce their prescription drug costs, often by using restrictive networks.
Despite this, PCW reported solid results for the second quarter of 2025, with revenues up 12% year over year. Same-store basis increased more than 15%, while same-store prescription volumes jumped nearly 7%. CVS Health attributed the performance to its ability to anticipate market dynamics and act accordingly to lead the industry. It invested in technology and staffing to bolster its operations and service, while also aiming to be the preferred employer in the pharmacy market.
The front store business gained momentum as the company expanded its customer base and gained retail share. CVS continues to source and negotiate generic pharmaceutical supply contracts through Red Oak, its joint venture with Cardinal Health, and extend those savings with its payer partners via CVS CostVantage. The new reimbursement model is designed to remove the traditional market reliance on cross-subsidization caused by market basket approaches, offering greater clarity and allowing CVS Pharmacy to set prices and contracts aligned with current market conditions while preparing for future changes.
Further, the company is advancing the next stage of pharmacy reimbursement model evolution, shifting its government business to cost-based pricing models for 2026.
Updates From CVS’ Pharmacy & Consumer Wellness Rivals
Elevance Health ELV and the National Association of Community Health Centers (“NACHC”) recently announced the integration of Food as Medicine (FAM) programming with primary care Community Health Centers (“CHCs”). The initiative expands Elevance Health’s existing regional Nourished Well program serving Medicaid individuals by training primary care provider teams within CHCs on the effectiveness of FAM for patients and families. Built on a shared commitment to whole health and community-centered innovation, the step marks an important advancement in addressing food/nutrition insecurity and diet-related chronic conditions through clinical integration.
The Kroger Co. KR achieved identical sales without fuel growth of 3.2%, excluding adjustment items, in the first quarter of 2025. This was driven by strong pharmacy, e-commerce, and fresh sales. The quarter also marked the seventh consecutive period where Kroger’s Our Brands outpaced national brands, led by Simple Truth and Private Selection. Notably, Simple Truth will soon introduce 80 new protein products, ranging from bars and powders to shakes, all from a natural and organic brand that customers trust.
CVS’ Price Performance, Valuation and Estimates
Year to date, CVS Health shares have risen 59.1% compared with the industry’s modest 0.2% growth.
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CVS’ shares are trading at a forward three-year price-to-sales ratio of 0.23, lower than the 0.41 industry average. The stock has a Value Score of A.
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The consensus estimate for the company’s 2025 earnings is showing a bullish trend.
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CVS currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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CVS Gains in Pharmacy & Consumer Wellness Despite Reimbursement Woes

Walmart Inc. (WMT) reported second-quarter fiscal 2026 results, with the top line beating the Zacks Consensus Estimate while the bottom line missing the same. Both metrics showed year-over-year growth. Management raised its fiscal 2026 net sales and adjusted earnings per share (EPS) guidance.
The company continues to balance innovation with disciplined execution, showcasing resilience in an uncertain consumer environment. Notably, digital channels, advertising and membership income played pivotal roles in driving momentum, while strategic investments and one-time expenses weighed on operating profit.
Walmart’s Quarterly Metrics: Key Insights
WMT’s adjusted earnings of 68 cents per share inched up 1.5% from the year-ago period’s 67 cents. The metric missed the Zacks Consensus Estimate of 73 cents.
Walmart Inc. Price, Consensus and EPS Surprise
Walmart’s total revenues rose 4.8% year over year to $177.4 billion, which beat the consensus mark of $175.5 billion. On a constant-currency basis, revenues grew 5.6%, reflecting strong performance across all business segments.
Walmart’s Global e-commerce sales surged 25% as the digital mix increased across all segments. This upside can be attributed to store-fulfilled pickup and delivery services. The company witnessed a 15.3% increase in membership income globally. WMT’s global advertising business advanced 46%.
The consolidated gross profit margin expanded 4 bps to 24.5%, driven by Walmart U.S. Margin growth. The upside was backed by strong inventory management in the United States and improved business mix, though partially impacted by unfavorable merchandise category mix.
Operating expenses deleveraged 64 bps, caused by higher self-insured liability claims in the United States, along with technology investments and wage increases at Sam’s Club across the United States, Canada and Mexico. This was partially offset by improved international leverage. On an adjusted basis, operating expenses deleveraged 35 bps, excluding discrete legal and reorganization charges.
The company’s operating income decreased 8.2% year over year to $7.3 billion, affected by discrete legal & restructuring costs. Adjusted operating income (cc) is up 0.4%.
Decoding Walmart’s Segmental Show
Walmart U.S.: The segment’s net sales grew 4.8% year over year to $120.9 billion. Strong sales performance was driven by growth in grocery and health & wellness, along with low single-digit gains in general merchandise. U.S. comp sales, excluding fuel, were up 4.6%, fueled by transaction growth of 1.5%, an average ticket increase of 3.1%, as well as strong e-commerce growth. E-commerce sales rose 26%, driven by strong performance in store-fulfilled delivery, marketplace growth and advertising.
The operating income of the Walmart U.S. segment jumped 2% to $6.7 billion, reflecting solid inventory management and improved e-commerce economics, partly offset by elevated claims expenses.
Walmart International: The segment’s net sales inched up 5.5% to $31.2 billion. Foreign currency fluctuations negatively impacted sales by $1.5 billion. On a cc basis, net sales jumped 10.5%, driven by strong performance in China, Flipkart and Walmex, supported by higher transaction counts and increased unit volumes. Sales strength continued across food and consumables, alongside growth in general merchandise.
E-commerce sales increased 22%, driven by strong growth in store-fulfilled pickup and delivery services and marketplace performance, with a higher digital sales mix across markets. The operating income, on a cc basis, fell 2.8% to $1.3 billion, impacted by strategic investments in India, Canada and Mexico, along with unfavorable currency translation.
Sam’s Club U.S.: The segment, which comprises membership warehouse clubs, witnessed a net sales increase of 6% to $21.2 billion (excluding fuel). Sam’s Club’s comp sales, excluding fuel, grew 5.9%. While transactions grew 3.9%, the average ticket climbed 2%. Sales growth was driven by strong performance in grocery and health & wellness.
E-commerce net sales jumped 26% at Sam’s Club U.S. Membership income increased 7.6%, supported by consistent growth in member count, strong renewal rates and higher penetration of Plus members. The segment’s operating income totaled $0.5 billion, down 15.8% year over year.
WMT Stock: Other Updates & Developments
The Zacks Rank #2 (Buy) company ended the quarter with cash and cash equivalents of $9.4 billion and total debt of $50.3 billion.
For the six months ended July 31, 2025, WMT generated an operating cash flow of $18.4 billion and a free cash flow of $6.9 billion. In fiscal 2026, capital expenditure is likely to account for 3-3.5% of net sales.
Year to date, Walmart repurchased 67.4 million shares for $6.2 billion, with $5.9 billion remaining under its $20 billion authorization.
What to Expect From WMT in Fiscal 2026?
For the third quarter of fiscal 2026, WMT expects consolidated net sales growth of 3.75-4.75% (at cc). The guidance includes almost 20 bps benefit from the VIZIO acquisition. The operating income is expected to grow 3-6% (cc), with adjusted EPS in the range of 58-60 cents.
For fiscal 2026, WMT now expects consolidated net sales growth of 3.75-4.75% (at cc) compared with prior guidance of 3-4%. The adjusted operating income is expected to increase 3.5-5.5% at cc for the year. Net interest expenses are likely to escalate $100-$200 million.
Walmart now expects adjusted EPS for fiscal 2026 to be in the $2.52-$2.62 range compared with prior guidance of $2.50-$2.60. The company recorded an adjusted EPS of $2.51 in fiscal 2025.
WMT’s shares have gained 6.9% in the past three months compared with the industry’s growth of 6.8%.
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Other Key Picks
The Kroger Co. (KR) operates as a food and drug retailer in the United States, and currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Kroger’s current fiscal-year sales and earnings implies growth of 1.1% and 6.7%, respectively, from the year-ago reported numbers. KR delivered a trailing four-quarter earnings surprise of 1.4%, on average.
Grocery Outlet Holding Corp. (GO) operates as a retailer of consumables and fresh products sold through independently operated stores in the United States. It carries a Zacks Rank #2 at present. GO delivered a trailing four-quarter earnings surprise of 28.2%, on average.
The Zacks Consensus Estimate for Grocery Outlet’s current financial-year sales indicates growth of around 8.2% from the year-ago reported numbers.
Ollie's Bargain Outlet Holdings, Inc. (OLLI) operates as a retailer of closeout merchandise and excess inventory in the United States and currently carries a Zacks Rank #2. OLLI delivered a trailing four-quarter earnings surprise of 2%, on average.
The Zacks Consensus Estimate for Ollie's current fiscal-year sales and earnings implies growth of 14.3% and 14%, respectively, from the year-ago reported numbers.
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Walmart Q2 Earnings Miss Estimates but Sales Beat, FY26 View Lifted

Wall Street watches a company's quarterly report closely to understand as much as possible about its recent performance and what to expect going forward. Of course, one figure often stands out among the rest: earnings.
Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive earnings surprises.
The ability to identify stocks that are likely to top quarterly earnings expectations can be profitable, but it's no simple task. Here at Zacks, our Earnings ESP filter helps make things easier.
The Zacks Earnings ESP, Explained
The Zacks Earnings ESP is more formally known as the Expected Surprise Prediction, and it aims to grab the inside track on the latest analyst estimate revisions ahead of a company's report. The idea is relatively intuitive as a newer projection might be based on more complete information.
Now that we understand the basic idea, let's look at how the Expected Surprise Prediction works. The ESP is calculated by comparing the Most Accurate Estimate to the Zacks Consensus Estimate, with the percentage difference between the two giving us the Zacks ESP figure.
When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% annual returns on average, according to our 10 year backtest.
Stocks with a #3 (Hold) ranking, which is most stocks covered at 60%, are expected to perform in-line with the broader market. But stocks that fall into the #2 (Buy) and #1 (Strong Buy) ranking, or the top 15% and top 5% of stocks, respectively, should outperform the market. Strong Buy stocks should outperform more than any other rank.
Should You Consider MercadoLibre?
Now that we understand what the ESP is and how beneficial it can be, let's dive into a stock that currently fits the bill. MercadoLibre (MELI) earns a #2 (Buy) right now and its Most Accurate Estimate sits at $12.56 a share, just 30 days from its upcoming earnings release on November 6, 2024.
MELI has an Earnings ESP figure of +11.42%, which, as explained above, is calculated by taking the percentage difference between the $12.56 Most Accurate Estimate and the Zacks Consensus Estimate of $11.27. MercadoLibre is one of a large database of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
MELI is just one of a large group of Retail and Wholesale stocks with a positive ESP figure. Wingstop (WING) is another qualifying stock you may want to consider.
Slated to report earnings on October 30, 2024, Wingstop holds a #3 (Hold) ranking on the Zacks Rank, and it's Most Accurate Estimate is $0.99 a share 23 days from its next quarterly update.
For Wingstop, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.96 is +2.99%.
MELI and WING's positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.
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Why Investors Need to Take Advantage of These 2 Retail and Wholesale Stocks Now

Walmart (WMT) came out with quarterly earnings of $0.68 per share, missing the Zacks Consensus Estimate of $0.73 per share. This compares to earnings of $0.67 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -6.85%. A quarter ago, it was expected that this world's largest retailer would post earnings of $0.57 per share when it actually produced earnings of $0.61, delivering a surprise of +7.02%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Walmart, which belongs to the Zacks Retail - Supermarkets industry, posted revenues of $177.4 billion for the quarter ended July 2025, surpassing the Zacks Consensus Estimate by 1.08%. This compares to year-ago revenues of $169.34 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Walmart shares have added about 13.5% since the beginning of the year versus the S&P 500's gain of 8.7%.
What's Next for Walmart?
While Walmart has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Walmart was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.59 on $175.89 billion in revenues for the coming quarter and $2.60 on $705.16 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Supermarkets is currently in the top 42% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Kroger (KR), is yet to report results for the quarter ended July 2025.
This supermarket chain is expected to post quarterly earnings of $1.00 per share in its upcoming report, which represents a year-over-year change of +7.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Kroger's revenues are expected to be $34.07 billion, up 0.5% from the year-ago quarter.
Should You Invest in Walmart Inc. (WMT)?
Before you invest in Walmart Inc. (WMT), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.
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Walmart (WMT) Q2 Earnings Miss Estimates

Lowe’s Companies, Inc. LOW posted second-quarter fiscal 2025 results with year-over-year growth in both the top and bottom lines. While revenues came in just shy of the Zacks Consensus Estimate, earnings surpassed the same. The Mooresville, NC-based home improvement retailer returned to positive comparable sales during the quarter. Management also updated its full-year outlook following the completion of the Artisan Design Group (ADG) acquisition.
LOW’s Quarterly Performance: Key Metrics & Insights
The home improvement retailer posted adjusted earnings of $4.33 per share, which beat the Zacks Consensus Estimate of $4.23. The figure marked a 5.6% increase from earnings of $4.10 per share reported in the same period last year. Including costs related to the acquisition of ADG, quarterly earnings came in at $4.27 per share, up from $4.17 in the prior-year period.
Net sales of $23,959 million marginally missed the consensus estimate of $23,961 million but rose from $23,586 million in the year-ago period. The growth was driven by a 1.1% increase in comparable sales as both Pro and DIY customers contributed despite a challenging start to the quarter from the weather. We had anticipated a 1.5% increase in comparable sales.
Lowe's Companies, Inc. Price, Consensus and EPS Surprise
LOW’s Margin & Cost Details
Lowe’s reported an adjusted gross margin of 33.8%, an increase of 37 basis points from the same quarter last year. We had expected gross margin to remain flat year over year.
Adjusted selling, general and administrative expenses totaled $4,149 billion, up from $4,068 million from the year-ago period. As a percentage of net sales, the metric came in at 17.3%, almost flat year over year.
The adjusted operating income increased to $3,512 million from $3,404 million a year earlier. We observe that the operating margin expanded 23 basis points to 14.7%. We anticipated a 10-basis-point lift in the operating margin.
Lowe’s Pro Strategy: ADG Closed; FBM Deal Announced
The acquisition of ADG expands Lowe’s ability to capture a greater share of Pro planned spending and strengthens its reach in new home construction. Building on this, the company has entered into an agreement to acquire Foundation Building Materials (FBM) for roughly $8.8 billion.
With more than 370 locations in the United States and Canada, and about 40,000 Pro customers, FBM generated an estimated $6.5 billion in revenues and $635 million in adjusted EBITDA in 2024 on a pro forma basis. The deal, to be funded with debt, is expected to be accretive to adjusted earnings per share in the first full year post-close and significantly advance Lowe’s Total Home and Pro strategies.
LOW’s Financial Health Snapshot
This Zacks Rank #3 (Hold) company ended the quarter with cash and cash equivalents of $4,860 million, long-term debt (excluding current maturities) of $30,548 million, and a shareholders’ deficit of $11,400 million.
For the first half of fiscal 2025, operating cash flow totaled $7,610 million, while free cash flow stood at $6,597 million after accounting for capital expenditures of $1,013 million. The company returned value to its shareholders by paying $645 million in dividends during the quarter, in addition to investing $1.3 billion toward the ADG acquisition.
As of Aug. 1, 2025, Lowe's operated 1,753 stores, encompassing a total of 195.5 million square feet of retail selling space.
A Sneak Peek Into LOW’s FY25 Outlook
Management raised its full-year sales guidance to reflect ADG’s contribution. Total sales are now projected between $84.5 billion and $85.5 billion, up from the prior range of $83.5 billion to $84.5 billion. Comparable sales are expected to be flat to up 1%. The operating margin forecast is 12.1%-12.2% (previously between 12.3% and 12.4%), with the adjusted operating margin guided to 12.2%-12.3%.
Lowe’s foresees earnings per share to be in the band of $12.10 to $12.35 (previously $12.15 to $12.40) with adjusted earnings projected in the range of $12.20 to $12.45 per share. Capital expenditures remain guided at approximately $2.5 billion.
Lowe’s Stock Price Performance
Shares of Lowe’s have advanced 17.2% in the past month compared with the industry’s rise of 13%.
Don’t Miss These Solid Bets
The Kroger Co. KR operates in the thin-margin grocery industry, and currently carries a Zacks Rank #2 (Buy). KR has a trailing four-quarter earnings surprise of 1.4%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Kroger’s current financial-year sales and earnings implies growth of 1.1% and 6.5%, respectively, from the year-ago reported numbers.
Grocery Outlet GO, an extreme value retailer of quality, name-brand consumables and fresh products, carries a Zacks Rank #2 at present. GO has a trailing four-quarter earnings surprise of 28.2%, on average.
The Zacks Consensus Estimate for Grocery Outlet’s current financial-year sales suggests growth of around 8.2% from the year-ago reported numbers.
Ollie's Bargain Outlet Holdings OLLI is a value retailer of brand-name merchandise at drastically reduced prices and currently carries a Zacks Rank #2. OLLI has a trailing four-quarter earnings surprise of 2%, on average.
The Zacks Consensus Estimate for Ollie's current fiscal-year sales and earnings implies growth of 14.2% and 14%, respectively, from the year-ago reported numbers.
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Lowe's Q2 Earnings Beat, Comps Rise Y/Y, View Revised on ADG Inclusion

Target Corporation TGT reported second-quarter fiscal 2025 results, with revenues and earnings declining from the prior-year period. The top line surpassed the Zacks Consensus Estimate, while the bottom line fell short. Also, the company witnessed a decline in comparable sales.
While results reflected ongoing headwinds in consumer demand and operational pressures, Target delivered sequential improvements, aided by stronger store traffic, disciplined expense management and continued digital momentum.
Digital comparable sales advanced 4.3% year over year, driven by over 25% growth in same-day delivery through Target Circle 360 and sustained momentum in Drive Up services.
Target Corporation Price, Consensus and EPS Surprise
Target’s Quarterly Performance: Key Metrics & Insights
Target reported adjusted earnings of $2.05 per share, which missed the Zacks Consensus Estimate of $2.09 and declined 20.2% from $2.57 in the year-ago period.
The big-box retailer generated total revenues of $25,211 million, which topped the Zacks Consensus Estimate of $24,911 million. The metric fell 0.9% on a year-over-year basis. We note that merchandise sales declined 1.2% to $24,719 million, while non-merchandise sales grew 14.2%, supported by Roundel advertising, membership and marketplace revenues.
Meanwhile, comparable sales decreased 1.9%, following a 3.8% decline in the preceding quarter. The metric reflected a decline of 3.2% in comparable store sales but an increase of 4.3% in comparable digital sales. We had projected a decline of 3.3% in comparable sales.
Traffic or the number of transactions dipped 1.3%, while the average transaction amount slid 0.6%. We had expected the average transaction amount to decline 2% for the quarter under review.
The gross margin contracted 100 basis points to 29%, pressured by higher markdown activity, purchase order cancellation costs and category mix, partially offset by reduced inventory shrink and increased advertising and non-merchandise revenues. The operating margin shrank 120 basis points to 5.2% from 6.4% in the corresponding period last year. We had expected a 110-basis-point contraction in the operating margin.
TGT Stock's Past 3-Month Performance
Image Source: Zacks Investment Research
Target’s Financial Health Snapshot
Target ended the second quarter with cash and cash equivalents of $4,341 million, long-term debt and other borrowings of $15,320 million, and shareholders’ investment of $15,420 million. During the quarter, Target paid out dividends of $509 million.
The company did not repurchase any shares during the quarter. At the end of the period, Target had about $8.4 billion remaining under the repurchase program approved in August 2021.
A Sneak Peek Into TGT’s FY25 Outlook
This Zacks Rank #3 (Hold) company reaffirmed its fiscal 2025 guidance. It continues to expect a low-single-digit decline in sales. Adjusted earnings are projected in the band of $7-$9 per share, while GAAP earnings per share are anticipated in the range of $8-$10.
Shares of Target have gained 13.3% in the past three months against the industry’s decline of 0.8%.
Don’t Miss These Solid Bets
The Kroger Co. KR operates in the thin-margin grocery industry, and currently carries a Zacks Rank #2 (Buy). KR has a trailing four-quarter earnings surprise of 1.4%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Kroger’s current financial-year sales and earnings implies growth of 1.1% and 6.5%, respectively, from the year-ago reported numbers.
Grocery Outlet GO, an extreme value retailer of quality, name-brand consumables and fresh products, carries a Zacks Rank #2 at present. GO has a trailing four-quarter earnings surprise of 28.2%, on average.
The Zacks Consensus Estimate for Grocery Outlet’s current financial-year sales suggests growth of around 8.2% from the year-ago reported numbers.
Ollie's Bargain Outlet Holdings OLLI is a value retailer of brand-name merchandise at drastically reduced prices and currently carries a Zacks Rank #2. OLLI has a trailing four-quarter earnings surprise of 2%, on average.
The Zacks Consensus Estimate for Ollie's current fiscal-year sales and earnings implies growth of 14.2% and 14%, respectively, from the year-ago reported numbers.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Target Q2 Earnings Miss Estimates, Comparable Sales Decline Y/Y

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is J. Sainsbury (JSAIY). JSAIY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 11.87. This compares to its industry's average Forward P/E of 24.50. Over the past year, JSAIY's Forward P/E has been as high as 15.95 and as low as 11.05, with a median of 12.75.
JSAIY is also sporting a PEG ratio of 2.61. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. JSAIY's industry has an average PEG of 3.47 right now. Over the last 12 months, JSAIY's PEG has been as high as 3.60 and as low as 0.38, with a median of 0.53.
Value investors will likely look at more than just these metrics, but the above data helps show that J. Sainsbury is likely undervalued currently. And when considering the strength of its earnings outlook, JSAIY sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing J. Sainsbury (JSAIY) Right Now?

Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Kroger Co (Symbol: KR), where a total volume of 33,013 contracts has been traded thus far today, a contract volume which is representative of approximately 3.3 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 49% of KR's average daily trading volume over the past month, of 6.7 million shares. Especially high volume was seen for the $69 strike put option expiring August 22, 2025, with 14,096 contracts trading so far today, representing approximately 1.4 million underlying shares of KR. Below is a chart showing KR's trailing twelve month trading history, with the $69 strike highlighted in orange:
Blackstone Inc (Symbol: BX) saw options trading volume of 17,093 contracts, representing approximately 1.7 million underlying shares or approximately 46.5% of BX's average daily trading volume over the past month, of 3.7 million shares. Especially high volume was seen for the $175 strike call option expiring August 22, 2025, with 3,298 contracts trading so far today, representing approximately 329,800 underlying shares of BX. Below is a chart showing BX's trailing twelve month trading history, with the $175 strike highlighted in orange:
And Adobe Inc (Symbol: ADBE) saw options trading volume of 16,966 contracts, representing approximately 1.7 million underlying shares or approximately 46.4% of ADBE's average daily trading volume over the past month, of 3.7 million shares. Especially high volume was seen for the $370 strike call option expiring August 22, 2025, with 1,813 contracts trading so far today, representing approximately 181,300 underlying shares of ADBE. Below is a chart showing ADBE's trailing twelve month trading history, with the $370 strike highlighted in orange:
For the various different available expirations for KR options, BX options, or ADBE options, visit StockOptionsChannel.com.
CDXS Historical Stock Prices
ELSE market cap history
Funds Holding OVLU
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy Tuesday Option Activity: KR, BX, ADBE

In this podcast, Motley Fool retirement expert Robert Brokamp chats with Wes Moss about the financial and nonfinancial metrics and habits of the happiest retirees.
Also in this episode:
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How the current bull market compares to those of the past.
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How to make more on your cash.
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A full transcript is below.
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This podcast was recorded on August 09, 2025.
Robert Brokamp: How does the current bull market compare to those of the past? What can we learn from the happiest retirees? You're listening to the Saturday Personal Finance Edition of Motley Fool Money. I'm Robert Brokamp. This week is part 1 of my discussion with financial advisor and author Wes Moss, about his research on the financial and non-financial characteristics of a fulfilling retirement. But first, let's start with last week and money. Our first item comes from Jurrien Timmer, director of Global Macro at Fidelity Investments, who puts out an interesting report each week, and his recent edition pointed out that the current bull market in US stocks that began in October of 2022 is now 33 months old and has produced an 84% gain. No, the tariff tantrum from this past spring didn't technically end the bull market, though it came pretty close. According to Timmer, since 1960, the median bull market lasts 30 months and produces gains of 90%.
The current run is right about at the median in terms of length and gains. However, what's somewhat different this time is breadth. Not all stocks are posting extraordinary gains, and Timmer wrote that only 35% of stocks are outperforming the index. He found that only two bull markets had similarly low breadth figures, and they were the 1970-1973 rise of the so-called 50/50 and the 1998-2000 tech boom. Both of those bull markets were followed by bear markets that cut the S&P 500 value in half. This current bull market has been driven primarily by tech-oriented growth stocks with a heavy emphasis on AI related companies, which brings us to our next item, and it comes from Renaissance Macro Research, also known as RenMac, which calculated that investment in AI, including both equipment and software, has added more to GDP growth this year than consumer spending. That's really remarkable because consumer spending usually drives 70% of the economy. There are two main takeaways here, at least in my opinion. One is that investment in AI has been massive, but also that consumer spending and demand is sluggish.
To quote a recent Wall Street Journal article, "Consumer spending stagnated in the first half of this year, according to federal data issued last week and the CEOs of Chipotle, Kroger, and Procter & Gamble, among others, who are telling investors that their customers are more strapped or appear to feel that way." The bottom line here is that if it were not for capital expenditures related to AI, both the stock market and the economy would not be looking nearly as rosy. Now we come to the number of the week, or actually numbers, and they are 3.3%-5.3%. That is the range of annualized returns that Vanguard expects from US equities over the next decade, according to a recent report. That, of course, is well below the historical long-term average of 10% and below the 15.3% the S&P 500 has returned on average over the last five years. The reason for Vanguard's lower expectations while US stocks trade well above the firm's estimate of the market's fair value. However, they do expect returns that are around 2% points higher from value stocks, small-cap stocks, and non-US developed stocks. Now, Vanguard isn't alone with their muted expectations. Just about any firm that estimates the future returns from stocks expects that they will be below average. That includes some of my colleagues here at The Motley Fool, specifically the analysts in our Hidden Gem service. In a recent article, they provided their estimate for returns from the S&P 500 for the next five years, and their range is 7.8%-8.2%. More optimistic than Vanguard's expectations for the next decade, but below average nonetheless for various reasons, including that US equities account for 60% of the value of all equities worldwide, that is more than 10% points above the historical norm. The S&P 500's PE ratio is more than 30% above the historical average.
Then there's the Buffett indicator, which is the ratio of the entire value of the stock market to GDP. It's like a price-to-sales ratio for the market. The current reading is 210%, which is more than twice the historical norm. What should you do with all these prognostications? Well, there's no guarantee they'll be right. It's very difficult to predict what the market will do, and many firms have expected sub-average returns from US stocks for the past several years, and, frankly, they've been proven wrong. Here's why I think these estimates matter. Over the last couple of Saturday episodes, I've encouraged you to use online tools to calculate whether you're on track to reach your financial goals. I named a couple of specific tools to consider. But whatever tool you use, you generally have to input a projected return on your investments. At current valuations, I think it's likely too optimistic to assume you'll earn 10% a year over the next 5-10 years. When I run my numbers, I assume my investments will earn 5%-6% while I'm still working and then around 5% in retirement. Then I adjust my monthly savings requirements accordingly. I hope my portfolio has higher returns, but I don't want my retirement or other goals relying on double-digit annual gains. Next up, my discussion with Wes Moss when Motley Fool Money returns.
We all want a happy, healthy, and wealthy retirement. But what does a research say about what it takes to achieve those goals? Well, here to tell us is Wes Moss, a certified financial planner practitioner, the host of the Retire Sooner podcast, and the author of What the Happiest Retirees Know. Wes, welcome to Motley Fool Money.
Wes Moss: Robert, so good to be here. Very good. Excited.
Robert Brokamp: Well, I'm glad to hear that. I'm excited for you to share a lot of what you've learned because you've been working on this for years. You've been doing multiple surveys of retirees and near retirees for many years. Plus, you've been an actual financial advisor for more than two decades, and you've determined that the happiest retirees tend to have certain habits, have certain characteristics. But let's start with what inspired you to start doing this research.
Wes Moss: When I was a new dad, I remember there was a popular book, and it was called Happiest Baby on the Block. Supposedly, that book helped you soothe your baby and make everything easier.
Robert Brokamp: Did it work for you?
Wes Moss: No, it didn't work. [laughs] When I first heard this, I thought, well, how do they know if the baby's happy? They didn't. You can't ask a baby. You can't talk to a baby. I guess, of course, the parent can determine, yeah, my kid was happy. They cried less than they maybe otherwise would. But it just reminded me or made me think, well, why wouldn't somebody write a book called The Happiest Retiree on the Block? What if we were to be able to go talk to 1,000 or 2,000 retirees, divide them up into two camps, happy versus unhappy, and then study the habits between those two groups? That was the original idea. It came from a baby book. It morphed into a long, really journey. It's been 15 plus years now of researching the financial habits, the consumer habits, the lifestyle habits, the social habits, all together that tips folks, if we look at America as a population. My most recent research study, again, is mapped to the US census, so it's statistically significant differences between these two very different groups, and we all want to end up in the happy, not the unhappy retiree group. I've continued that research, and I think it's a powerful guide to have the financial side of retirement, which you do such an amazing job of simplifying and having people be able to digest it and understand it. But then pairing all the lifestyle social community side and putting those two together so that we have this fruitful free retirement.
Robert Brokamp: Let's start with a topic that probably first comes to mind for most people, which of course is money. How much in terms of just liquid investable assets? Not net worth, but the liquid investable assets, do the happiest retirees tend to have?
Wes Moss: When I first did this, again, let's go back approximately 15 years. The way I looked at it in the very first book I did about this called You Can Retire Sooner Than You Think: Five Money Secrets of the Happiest Retirees. There was this inflection point that I found, and you can look at the data a million different ways, but you can look at the average, you can look at the median. I found that the median, at that time, this is, again, a long time ago, the median to crossover from the unhappy to the happy group, well, the median was $500,000. Now, that's not net worth. That's liquid retirement assets. That was the number I used for a very long time. That was controversy in a couple of ways. One, I remember getting feedback. That's so much money. That's for rich people. It takes forever to get to that. Then on the other side of the equation was that's not nearly enough. But 500K, that's not going to do it. The number, I don't know if some people didn't like the number. Some people like the number. That was where I stood for a long period of time. If you go back to, let's say, 2013, and you'd been in a balanced fund, let's call it a 60/40 allocation, 60 stock, 40 bond, and you withdrew funds from that. You started with 500, you took out 4% rule, so you started with 20K and ratchet it up for inflation. That would be approximately, depending on where you are, but I'm generalizing here, you wouldn't have 500. You would have taken out about 300, and you'd still have about $1 million left.
Robert Brokamp: Wow.
Wes Moss: As low as that sounded back then, it very likely work if somebody had taken that approach. Again, there's lots of variation there, but it's very realistic that that could have worked out. Today, I look at it in a more nuanced way. The way the research now in the most recent study is a little more nuanced, and I think of it in three zones. Here, it's the red, yellow, and green zone. The happy retirees want to get to the green zone. When it comes to liquid net worth, those numbers, I look at them a little differently today. You're in the red zone, meaning that you're well below the happiness baseline in America. It's like the opposite of Alpha. You're way under the happiness base zone if you have less than 100K. That makes sense. The yellow zone from 100K to just under a million, happiness levels are around the US baseline, slightly above, but just let's call it normal happiness in America. But once you cross into the green zone, which is the million-dollar category and up $3 million category, that's where you see happiness levels well above the US happiness baseline. That is the zone I want people to really focus in on. Today, that number is $1 million plus. It used to be 500, but we all know we've gone through massive inflation, so it makes sense that those numbers would be bigger or more significant, but that's where we stand today. I also look at income data, again, getting into that green zone for American families. This is for all income combined. Social Security, pension, whether you have rental income, etc, plus investment income, we want to get to the 100K and above. That's what gets us to the green zone. There's a lot of other financial habits, but those are two of the big ones that get us from red to yellow, and eventually to green, and that's where we want to be.
Robert Brokamp: Those are investable assets. What else did you learn about other ways that the happiest retirees manage their money apart from just their portfolios?
Wes Moss: There's a couple of things. One, I've always been interested in mortgage data because Americans have a weight, and it's really our biggest bill. You could argue that healthcare can be similar or higher nowadays. But really, for most of our lives, a mortgage and paying for our shelter is the number one big bill. What I found in the most recent data is that either a paid off mortgage or a mortgage that's going to be paid off or scheduled to be paid off within nine years or less, which is still a fair amount of time. That's what gets people into that happiness green zone. There's something very powerful about seeing the light at the end of the tunnel. Multiple and diversified income streams. Happy retirees tend to have more and different streams of income, so that they have diversification of how they're getting paid. Those are two financial habits beyond a portfolio that really, really tip the scales toward financial peace and feeling confident in financial decisions.
Robert Brokamp: I think one underappreciated aspect of having the mortgage paid off by the time you retire is that it lowers your expenses. In retirement, the more your expenses, the more you have to take out of your portfolio, the more that you have to take from your traditional IRA, which increases your taxes. If you have a $2,000 mortgage, you're paying $24,000 a year. You take $24,000 out of your traditional IRA, you've just bumped up your tax bill by over $5,000 if you're in the 22% tax bracket. You did that this year. The following year, you have to pay that tax bill. Where's that money going to come from? You have to take more money out of your traditional IRA, which will affect your tax bill the following year.
Wes Moss: Exactly.
Robert Brokamp: The real value to going into retirement with lower expenses, because you can leave more of your money alone.
Wes Moss: Keeping your tax bracket as low as possible. The other thing, Robert, that I think is really impacts almost all of us, and was really eye-opening from the last research study I did, is that people are very afraid of running out of money in America. I see it at every asset level. Now, naturally, as you would expect, the percentage of people worried about "Running out of money goes down as asset levels go up." But it's still really prevalent, even in the million-dollar category. Almost 50% of Americans that have $1 million or more, are worried about running out of money. Even in the three million-plus category, still one in four people worried one of their top financial fears is running out of money. Obviously, it's not just about having a larger nest egg and lots of cushion. There's more to it than that. That's what was so eye-opening about the most recent research I did is that that doesn't three million plus doesn't necessarily solve that fear and anxiety of running out, or it doesn't solve it for everybody. There's more to the story.
Robert Brokamp: It's time for our get it done segment. Now, you surely heard the phrase cold, hard, cash. Harkens back to the days when cash came mostly in the form of coins. In fact, the roots of the phrase go back as far as the 1600s. But as far as I'm concerned, cash is warm and cozy, like a comfortable bed at the end of a long day. Now, I know that cash isn't very exciting. Perhaps it might help to reframe it in terms of the many benefits it provides. You can think of it as dry powder, a means to buy stocks when the market is down. Portfolio flotation device because it holds up your portfolio when most investments are sinking. It could be a family protection plan, a source of funds in case of income disruption or expense eruption, or you can just think of it as a heated blanket because it can help you sleep at night. Oh, that's said, there's a lot of cash out there, not earning very much. According to the FDIC, here are the average interest rates on typical bank products. For checking account, the average rate is 0.07%. Savings account is 0.38%, one-year CD 1.63%, and three-year CD 1.34%. Dear listener, you can do much better. With a little effort, you should be able to earn close to or above 4% on many baking products. Several websites highlight higher-yielding options. We have one here at The Motley Fool, which you can visit by going to fool.com/money/banks. Then there's the cash in your brokerage account. The default cash option may be paying you little to nothing.
Check with your broker to see if you have access to a higher-yielding sweep account. Other options to consider are money market funds, individual treasury bills, or ETFs that invest in treasury bills, such as the iShares 0-3-month treasury bond ETF with the ticker SGOV. Just keep in mind that funds, ETFs, T-bills, bonds in general they might not be quite as liquid as cash, so it might take a day or two for a sell order to settle. Also, they aren't backed by the FDIC, as most cash products are that you get from a bank. Now, as you may have read, there's a lot of drama these days about if and when the Federal Reserve will cut rates. The futures market currently predicts that a 0.75% reduction in the Fed funds rate is the likeliest scenario by the end of 2025. If that happens, rates on cash accounts with variable rates, such as savings accounts, money markets, those are going to head lower. It might make sense to lock in current rates with some of your cash allocation by buying CDs or individual treasuries. Plus, keep in mind that treasuries have the added benefit of being free of state income taxes. That's the show. Make sure you tune in next Saturday for part 2 of my discussion with Wes Moss.
Thanks to Dan Boyd, who's the engineer for this episode. As always, people on the show may have interest in the stocks or funds they talk about. The Motley Fool may have formal recommendations for or against. But don't buy or sell investments based solely on what you hear. All personal finance content follows Motley Fool editorial standards and is not approved by advertisers. Advertisements are sponsored content and provided for informational purposes only. To see our Fool advertising disclosure, please check out our show notes. I'm Robert Brokamp. Fool On, everybody.
Robert Brokamp has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chipotle Mexican Grill. The Motley Fool recommends Kroger and recommends the following options: short September 2025 $60 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Learning From the Happiest Retirees

Amazon's AMZN recent strategic expansion of its same-day grocery delivery service to more than 1,000 cities marks a transformative moment in the e-commerce giant's quest to dominate the $1.6 trillion U.S. grocery market. The company's ambitious plan to more than double this reach to 2,300 cities by year-end represents one of its most aggressive grocery pushes to date, fundamentally reshaping how Americans shop for their daily essentials. By integrating thousands of fresh perishable items, including produce, dairy, meat, and frozen foods, into its existing Same-Day Delivery infrastructure, Amazon has created a seamless shopping experience that allows customers to order groceries alongside electronics, books, and household items in a single transaction.
This expansion positions Amazon to capture a significantly larger share of the grocery market, building on its already impressive $100 billion in gross grocery and household essential sales in 2024. The service's competitive pricing structure, offering free delivery for Prime members on orders over $25, makes it an attractive alternative to traditional grocery shopping while maintaining the convenience that modern consumers demand.
The company's investment in temperature-controlled fulfillment networks and six-point quality checks demonstrates its commitment to overcoming the historical challenges of online grocery delivery. This strategic move not only enhances the value proposition of Prime membership but also creates powerful network effects that could accelerate customer acquisition and retention. With perishables like strawberries and avocados already ranking among the top items in Same-Day Delivery carts, Amazon has successfully tapped into consumer demand for fresh grocery convenience.
How Rivals Stack Up in the Same-Day Grocery Race
While Amazon aggressively expands its same-day grocery footprint, major competitors Walmart WMT, Target TGT and Kroger KR have been developing their rapid delivery strategies to defend market share. Walmart, the nation's largest grocer, currently offers same-day delivery from approximately 4,700 stores nationwide through its Walmart+ membership program, maintaining its competitive edge through extensive physical infrastructure. The retailer has leveraged its vast store network to fulfill online orders, though Walmart's delivery fees and membership costs remain comparable to Amazon's pricing structure.
Target has positioned itself as a formidable competitor through its Shipt acquisition, offering same-day delivery from nearly all its 2,000 stores, with the retailer focusing on integrating grocery with its strong general merchandise offerings.
Kroger, the largest traditional supermarket chain, has taken a different approach by partnering with delivery platforms and investing heavily in automated fulfillment centers through its collaboration with Ocado. Kroger operates customer fulfillment centers in multiple states, though its geographic reach for same-day delivery remains more limited than Amazon's planned expansion. While Kroger's deep grocery expertise provides quality advantages, its delivery infrastructure development has progressed more gradually. Target's strength lies in its urban and suburban store density, enabling efficient last-mile delivery, though Target's grocery selection typically remains narrower than dedicated grocery competitors.
As Amazon races toward 2,300 cities, Walmart's established presence provides immediate competition, while Kroger and Target must accelerate their digital investments to maintain relevance in this rapidly evolving landscape.
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Kroger Company (The)

Price history and volume

Shares 360

Investment risk — high

Investment potential — high

AI Factors

stagflation

Food Supply

Inflation

Consumer Spending

USD Average Exchange Rate

Recession Risk

Consumer Confidence

Supply Chain Disruptions

Security parameters