Evercore ISI Predicts Strong Holiday Season for Target (TGT) and Best Buy (BBY)

21 hours ago

Evercore ISI's latest report indicates a robust finish to the U.S. holiday shopping season, prompting an upward revision of growth forecasts to 4%, driven mainly by physical store sales rather than e-commerce. The firm is tactically bullish on Target (TGT, Financial), expecting strong performance in its toy market share and home product sales. Best Buy (BBY) is also seen as a winner this season, with a significant increase in heavy consumer spending anticipated by mid-January.

Analyst Greg Melich suggests that investor expectations are low enough that even slight improvements will support Target (TGT, Financial) and Best Buy (BBY). In the retail sector, Evercore remains optimistic about Walmart (WMT) and Amazon (AMZN) due to their potential for structural market share growth and business model innovations.

Despite the Federal Reserve's hints at slowing down interest rate cuts, Evercore ISI's home improvement indicators are at a three-year high, with online traffic rebounding. Sherwin-Williams (SHW), Wayfair (W), and Home Depot (HD) are highlighted as top picks for investors looking to benefit from a recovery in home improvement spending.

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I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.

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