Key retail earnings reporting this week: The committee's retail strategy
Спикеры
Stephanie Link
— Главный инвестиционный стратег, Hightower
Joe Terranova
— Старший управляющий директор, Virtus Investment Partners
Jenny Harrington
— CEO, Gilman Hill Asset Management
The Investment Committee debates retail earnings setups ahead of key reports from Target, Walmart, TJX/Ross and Estée Lauder. Stephanie Link is constructive on Target longer term because of the new CEO's operational overhaul and depressed margins, while Joe Terranova sees Target as a momentum/sentiment setup that still needs fundamental confirmation. The panel also discusses Estée Lauder's Beauty Reimagined turnaround and the importance of its upcoming guidance.
- Target's five-year chart remains below its 2021 high, but the new CEO is improving operations and product mix.
- Stephanie Link would buy Target on a significant pullback, citing operating margin recovery potential.
- Joe Terranova says Target is now price momentum but still needs Q1-to-Q2 fundamental improvement.
- Target's analyst sentiment is washed out, with only 34% buy ratings and an average price target below the current price.
- TJX and Ross Stores are mentioned as retail names but without independent theses.
- Estée Lauder's Beauty Reimagined plan is expected to support better organic growth and fiscal 2027 guidance.
Идеи
Buy Target on pullbacks for turnaround.
Stephanie Link argues Target is making real progress under its new CEO, with improvements in operations, product mix, supply chain, cost controls and spending to grow. She says operating margins are at a 4.5% trough versus 8%+ in 2022, and if margins gradually improve, sales should follow because the changes are driving traffic. Near-term expectations are high, but she would be a buyer on a significant pullback because the longer-term recovery has room to run.
Estée Lauder Beauty Reimagined drives growth.
Jenny Harrington says Estée Lauder's Beauty Reimagined plan, implemented by the CEO about a year ago, should drive better organic growth. She expects good organic growth in the upcoming quarter and says the key is fiscal 2027 guidance, which should show 3-5% organic growth and 12.5-13% operating margins, signaling the turnaround program is working.
Далее
This CNBC video, published August 18, 2026, features Stephanie Link, Jenny Harrington discussing TGT, EL. 2 trade ideas extracted by AI with direction and confidence scoring.
Speakers: Stephanie Link, Jenny Harrington · Tickers: TGT, EL