Retail ETFs in Focus Ahead of Big-Box Q3 Earnings

The retail sector is in focus with big retailers like Home Depot HD, Lowe’s LOW, Wal-Mart WMT and Target TGT, as well as store channels like Nordstrom JWN and Kohl’s KSS, due to report earnings. So far, 23 out of 34 retailers on the S&P 500 Index have already reported. Earnings of these companies are up 17.3% from the same period last year on 6.3 higher revenues, with 52.2% beating EPS estimates and 47.8% beating revenue estimates. Overall, the retail sector is expected to report earnings growth of 18% on 6.3% revenue growth. Given this, traditional retail ETFs are in focus. SPDR S&P Retail ETF XRT and VanEck Vectors Retail ETF RTH have gained nearly 5% each over the past month.Stay up-to-date with all quarterly releases:See Zacks Earnings Calendar.What Our Model Unveils for Retailer EarningsAccording to our methodology, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Home Depot has an Earnings ESP of +4.09% and a Zacks Rank #2. The company saw a positive earnings estimate revision of a penny over the past seven days for the to-be-reported quarter. Analysts raising estimates right before earnings — with the most up-to-date information possible — is a good indicator for the stock. The company delivered an average earnings surprise of 1.64% in the last four quarters. Home Depot is scheduled to report on Nov. 12, before market open.Lowe’s has an Earnings ESP of +2.00% and a Zacks Rank #3. The company saw no earnings estimate revision for the to-be-reported quarter over the past 30 days and delivered an earnings surprise of 3.33%, on average, in the last four quarters. LOW is slated to report earnings on Nov. 19. Wal-Mart has an Earnings ESP of +1.61% and a Zacks Rank #2. The company saw no earnings estimate revision over the past 30 days for the to-be-reported quarter. Wal-Mart delivered an average four-quarter earnings surprise of 6.89%. Wal-Mart is scheduled to report on Nov. 19, before market open (see: all the Consumer Discretionary ETFs here).Target has an Earnings ESP of +0.73% and a Zacks Rank #2. The company saw no earnings estimate revision over the past month for the to-be-reported quarter. It delivered an earnings surprise of 20.26% for the last four quarters. Target will report earnings on Nov. 20, before the opening bell.     Nordstrom has an Earnings ESP of 0.00% and a Zacks Rank #3. It saw no earnings estimate revision for the to-be-reported quarter over the past 30 days. The company delivered a negative earnings surprise of 17.82%, on average, over the past four quarters. It is scheduled to report earnings on Nov. 26 after the closing bell. Kohl’s has an Earnings ESP of -2.07% and a Zacks Rank #2. It saw no earnings estimate revision for the to-be-reported quarter in the past month. Kohl’s delivered a negative average earnings surprise of 145.30% in the last four quarters. The company is slated to report before the opening bell on Nov. 26.ETFs in FocusSPDR S&P Retail ETF (XRT)SPDR S&P Retail ETF tracks the S&P Retail Select Industry Index, which provides exposure across large-, mid- and small-cap stocks. It holds 78 well-diversified stocks in its basket, with none making up for more than a 2.3% share. Additionally, SPDR S&P Retail ETF is well spread across various industries with a double-digit allocation each in automotive retail, specialty retail, apparel retail and broad-line (read: Will Trump's Tariffs Fuel Inflation? ETFs in Focus).SPDR S&P Retail ETF is the largest and most popular in the retail space, with AUM of $382.5 million and an average trading volume of 4 million shares. It charges 35 bps in annual fees and has a Zacks ETF Rank #3 with a Medium risk outlook.VanEck Vectors Retail ETF (RTH)VanEck Vectors Retail ETF provides exposure to the 26 largest retail firms by tracking the MVIS US Listed Retail 25 Index, which measures the performance of the companies involved in retail distribution, wholesalers, online, direct mail and TV retailers, multi-line retailers, specialty retailers and food and other staples retailers. VanEck Vectors Retail ETF is highly concentrated on the top firm with nearly 21% exposure, while the other firms hold no more than 9% share. VanEck Vectors Retail ETF has amassed $228.5 million in its asset base and charges 35 bps in annual fees. It trades in a lower volume of 2,000 shares a day on average. VanEck Vectors Retail ETF has a Zacks ETF Rank #3 with a Medium risk outlook.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Target Corporation (TGT): Free Stock Analysis Report Kohl's Corporation (KSS): Free Stock Analysis Report Walmart Inc. (WMT): Free Stock Analysis Report Lowe's Companies, Inc. (LOW): Free Stock Analysis Report The Home Depot, Inc. (HD): Free Stock Analysis Report Nordstrom, Inc. (JWN): Free Stock Analysis Report SPDR S&P Retail ETF (XRT): ETF Research Reports VanEck Retail ETF (RTH): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks