Target company TGT And Ross Stores, Inc. RUST should post better revenue in the second quarter as consumers continue to spend despite macroeconomic uncertainties, analysts at Tesley Advisory Group.

Analyst Joseph Feldman expects Target’s second-quarter revenue to rise 2% year-on-year to $25.3 billion when the company reports earnings before the market opens on Wednesday. His forecast beats FactsSet According to consensus, sales are at 25.2 billion US dollars.

“Overall, we believe consumers are showing resilience as they continue to seek value and focus on essentials while being selective about nonessentials and responding to innovation and newness,” Feldman wrote in a note to Target, commenting on consumers in general.

Target will continue to focus on its value offering by lowering prices and offering private labels in new stores, he said.

Feldman continues to maintain an “outperform” rating and a price target of $190 for Target stock.

Also read: Retail sales jump in July, weekly unemployment numbers undercut expectations: Traders tend to cut 25 basis points in September

Analyst Dana Tesley forecasts Ross Stores’ second-quarter revenue to rise 6.9% year-over-year to $5.28 billion when the company reports earnings after the market closes Thursday. Her expectation is above the consensus of $5.24 billion.

“We continue to be encouraged by ROST’s series of strong results over the past five quarters. The company has weathered the macroeconomic challenges relatively well despite the enormous pressure on some of its core customers,” she wrote in a statement.

“We are encouraged by management’s efforts to improve the product mix and increase efficiency across the company.”

She maintains her Market Perform rating and $160 price target on the stock.

Price promotion: Target rose 1.67% to close at $144.03 on Friday, while exchange-traded funds that track the stock also rose.

• VanEck Retail ETF RTH won 0.61
• Consumer Staples Select Sector SPDR Fund XLP increased by 0.27%
• Simplify the next intangible asset index ETF NXTV slightly increased by 0.15%
• Federated Hermes US Strategic Dividend ETF FDV rose by 0.41%
• Vanguard Consumer Goods ETF VDC Increased by 0.32%

Ross Stores lost 0.27 percent to close at $147.40 on Friday, while ETFs tracking the stock posted mixed results.

• VictoryShares THB Mid Cap ETF MDCP rose by 0.52%
• BlackRock Future US Themes ETF BTHM 0.03% down
• IShares US Consumer Focused ETF IEDI rose by 0.24%
• LG QRAFT AI-powered US Large Cap Core ETF LQAI remained unchanged
• Invesco S&P 500 Equal Weight Consumer Discretionary ETF RSPD rose by 0.29%

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