Amazon is experiencing notable growth in e-commerce, with sales in the first quarter increasing by 15% compared to the previous year, marking its strongest growth since the pandemic’s end.
Consumers are beginning to spend again, possibly due to recent tax cuts. As reported by the IRS, tax refunds as of April 2 have risen by over 10% from 2025.
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Amazon isn’t expected to be the only retailer displaying strong performance this quarter, as there are other notable retail stocks to consider.
1. Walmart
Walmart (NASDAQ:WMT) is poised to benefit from improved consumer spending habits. In an economy where shoppers are still willing to spend but are looking for bargains, Walmart’s promise of “everyday low prices” could draw more customers.
The company is set to announce its first-quarter results on May 21st, with anticipated sales of $172 billion, a 5% rise from last year, driven mainly by same-store sales. Earnings per share are expected to be around $0.66, reflecting an 8% increase.
Notably, Walmart’s e-commerce is surging at a quicker rate than Amazon’s. In the fourth quarter, e-commerce sales climbed 24% year over year, outpacing Amazon’s 8% growth in Q4 2025 and 9% in Q1 2026.
Investments in artificial intelligence, like its shopping assistant Sparky, are also paying off, as customers using Sparky tend to spend about 35% more. Furthermore, Walmart has various high-margin revenue opportunities, such as memberships and advertising, that should continue to elevate growth. These factors will be key points in future earnings reports.
That said, there’s some uncertainty about how much the stock price can increase moving forward, particularly with a forward P/E ratio of 45, which seems steep for a company seeing only single-digit profit growth.
2. TJX Companies
TJX Companies (NYSE: TJX) appears relatively insulated, thriving even in tough economic times. It’s a leading off-price retailer with brands like TJ Maxx and Marshalls, having seen its stock rise 122% over the last five years, despite inflationary pressures.
What’s impressive is that TJX has managed to record sales growth in all but one of the last 20 years (the exception being 2020). In the most recent quarter, same-store sales went up by 5%, and adjusted profits improved by 16%.
The company plans to announce its first-quarter results later in May, with analysts expecting sales to grow by 6.5% year-over-year to about $13.9 billion, alongside an 8.7% rise in profits. Some of the slowdown in revenue growth could be attributed to seasonal fluctuations, foreign currency impacts, and potential tariff challenges.
However, management has indicated that the quality of available inventory remains strong, which is promising for immediate sales, allowing TJX to draw customers with appealing deals.
Future growth in international markets is a priority, particularly in Europe, Mexico, and the Middle East, with plans to update stores and enhance its e-commerce segments.
Despite being in line with industry trends, TJX has shown consistent performance, which may justify its forward P/E ratio of around 30.
Should You Consider Buying Walmart Stock Now?
If you’re contemplating an investment in Walmart stock, here are a few things to mull over:
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