Retail stocks are in focus this week as several major players report their quarterly earnings. Jay Woods, chief market strategist at Freedom Capital Markets, highlights Target as a standout, noting its impressive 56% share price increase in 2026, marking its first potential winning year in five. However, analysts predict a possible pullback, with a hold rating and an anticipated 6% downside.
Target's shares are currently around $153, with resistance noted at $155. Woods suggests that if the stock drops to $140, it could be an attractive entry point. In contrast, Walmart is experiencing a near-term downtrend, facing a double top pattern at $135, which could indicate further declines.
Despite a 3% gain in 2026, Walmart's performance has lagged behind the S&P 500, although analysts maintain a bullish outlook with a buy rating and a projected 20% increase over the next year. Home Depot, which has seen a slight decline of nearly 2% in 2026, is also under scrutiny, with analysts suggesting a potential upside of 10% if it can surpass the $355 mark.
Woods emphasizes the importance of the 200-day moving average for Home Depot and describes it as a 'prove-me stock.' Additionally, Woods is monitoring oil companies like Exxon Mobil and Chevron, which are approaching 52-week highs as crude prices remain elevated