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The Week Ahead: Retailer Earnings in the Spotlight

Results from Advance Auto Parts, Autozone, L Brands, Target, and Best Buy are due. Plus, Fed minutes and home sales data.

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Jeremy Glaser: Retailers are the highlight of earnings this week.

Auto-parts sellers Advance Auto Parts and Autozone report on Tuesday. Analyst Zain Akbari believes that the threat of Amazon is overblown and thinks both firms look attractively priced today.

L Brands, the wide-moat parent of Victoria’s Secret and Bath & Body Works, also looks inexpensive ahead of earnings with shares trading in 5-star territory.

Last quarter, Target's results showed that the firm's transformation was starting to bear fruit, but analyst John Brick warns that the decline in operating margins is a sign of the pressures the firm still faces and that continued heavy investment will be needed to compete.

Morningstar strategist R.J. Hottovy says recent results from Best Buy are a sign that the firm is executing well ahead of other retailers, but he sees that as more than priced into the share price today.

Other earnings include TJX, Gap, HP Enterprise, and Tiffany.

It’s a mostly quiet data week, with the May Fed minutes, new and existing homes sales, durable goods orders, and the University of Michigan consumer sentiment gauge due.

Stay tuned for our take on these stories.

Jeremy Glaser does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.