Companies like Walmart and Apple could be among the most reliable plays during earnings season, according to Wolfe Research. The third-quarter earnings season is kicking off this week, with major consumer and financial names set to post their latest financial reports. Analysts lowered their EPS estimates in aggregate by a larger margin compared to recent averages during the third quarter, but S & P 500 earnings year-over-year are still estimated to grow 4.
" Badishkanian added that Walmart's prices are substantially cheaper than traditional grocers and able to compete with hard discounters through private label offerings. His $89 price target on Walmart shares implies about 12.3% potential upside. The stock has a price-to-earnings ratio of 33.3, according to the screener. TJX Companies made the cut alongside several consumer discretionary stocks. Shares of the discount retailer have jumped 19.