Earnings season is starting to slow now that we’ve heard from the majority of the S&P 500 and 6 out of the 7 Magnificent 7 stocks.
But many key consumer-focused companies are going to report earnings this week including big retailers like Walmart and favorite restaurant chains like CAVA. Two Chinese retail juggernauts, JD.com and Alibaba, will also report earnings.
Now that there is a 90-day pause in the US and China trade war, what will the companies say about the consumer and the state of their respective economies?
Will we continue to see the withdrawal of full year guidance this week? Or does the pause provide some certainty?
5 Top Earnings Charts to Watch
1. Walmart Inc. WMT
Walmart has beat on earnings 11 quarters in a row. It has only missed 2 times in the last 5 years. That’s impressive for a retailer, with some of that period during the pandemic.
Walmart shares are up 7.1% year-to-date and are trading near all-time highs. It’s not cheap, with a forward price-to-earnings (P/E) ratio of 37.
Is Walmart too hot to handle right now?
2. Alibaba Group Holding Ltd. BABA
Alibaba has missed two quarters in a row as the Chinese economy has slowed. Shares of Alibaba are up 57.6% year-to-date, but are still down 33.8% over the last 5 years.
Alibaba is cheap, with a forward P/E ratio of just 11.5.
Should value investors be watching Alibaba this week?
3. Deere & Co. DE
Deere, the agriculture and construction equipment company, has only missed one time in the last 5 years. Deere has beat 10 quarters in a row. That’s an impressive earnings streak.
Shares of Deere are up 17% year-to-date and are trading near the 5-year highs. Yet, 2025 earnings are expected to fall 26%. Deere trades with a forward P/E of 26, which is not cheap.
Will Deere beat again?
4. Birkenstock Holding plc BIRK
Birkenstock, the popular shoe manufacturer, has beat on earnings 3 out of the last 4 quarters. Birkenstock only went public in 2023.
Shares of Birkenstock are down 6% year-to-date. Earnings are expected to jump 32.4% in 2025. The stock has a forward P/E of 29.
Should Birkenstock be on your growth stock watch list?
5. CAVA Group, Inc. CAVA
CAVA saw its first earnings miss last quarter since going public in 2023. Shares of CAVA are down 12.5% year-to-date but are still up 120% since it went public.
This restaurant chain is earnings positive, and now has a forward P/E of 170x. A P/E over 15 is considered expensive.
CAVA is a favorite with investors. Will it get back on track with an earnings beat this week?
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Walmart Inc. (WMT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report CAVA Group, Inc. (CAVA): Free Stock Analysis Report Birkenstock Holding PLC (BIRK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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