Here’s what role grocery may play in Walmart’s upcoming earnings call

While many retailers that sell discretionary items (i.e. clothing, TVs and furniture) might be cutting back on their forecasts, shoppers cannot stop feeding their families, thus investors are on the edge of their seats for Walmart’s May 18 earnings call. 

In a preview of what this call could look like, Reuters predicts that investors are eyeing how American shoppers shifted their spending when faced with higher prices on groceries (and well, all other merchandise too). 

The article suggests that, since low-priced grocery basics like toilet paper, milk and eggs account for over half of Walmart’s revenues, some analysts believe that the retailer seems well-positioned to beat its earnings expectation for the first quarter.

Even after issuing a cautious full-year forecast earlier this year, some brokerages — including Telsey Advisory Group, UBS, and Citi — still believe Walmart may raise some of its outlook targets during the earnings call.

“The narrative around Walmart is that not only is it a bastion of safety in this otherwise uncertain world, but it is also a company that is capitalizing on its myriad emerging opportunities as it adapts to a digital landscape,” UBS analyst Michael Lasser said.