Amazon sees strong momentum in e-commerce. In the first quarter, e-commerce unit sales grew by 15% year-on-year – the highest growth since the end of the pandemic.
Consumers also spend money, and it may show tax relief. As of April 2, the IRS reported that tax refunds have increased by more than 10% compared to 2025.
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Amazon likely won’t be the only retailer reporting strong results this quarter. Here are two other top stocks to watch.
1. Walmart
Walmart (NASDAQ: WMT) it is set to benefit from improving consumer spending patterns. In an economy where shoppers are still value-conscious but spending money, Walmart’s “everyday low prices” can thrive.
The company will report first-quarter financial results on May 21. Sales are expected to grow 5% year over year to $172 billion, almost all of which will come from existing stores. Earnings are expected to increase 8% to $0.66 per share.
Importantly, Walmart is growing in e-commerce much faster than Amazon. E-commerce sales rose 24% year over year in the fiscal fourth quarter — far outpacing Amazon’s 8% increase in Q4 2025 and 9% in Q1 2026.
Walmart is benefiting from investments in Artificial Intelligence (AI), such as the Sparky shopping assistant. Customer engagement was strong, with Sparky users typically spending about 35% more per order.
Other top-line revenue opportunities, such as memberships (eg, Walmart+) and advertising, should support revenue growth. These opportunities stem from Walmart’s e-commerce business and are key areas to watch in future earnings reports.
However, it is unclear how much upside the stock offers from here. The forward price-to-earnings (P/E) ratio is 45, which is expensive for a company that grows earnings at single-digit rates.
2. TJX Companies
The TJX Companies (NYSE: TJX) it is designed to be successful in almost any economic environment. It is a leading off-price retailer (TJ Maxx, Marshalls, HomeGoods, Sierra, and Homesense). The stock is up 122% over the past five years, despite high inflation hitting consumers’ wallets.
What stands out is that TJX has reported sales growth every year, except one (2020), for the past 20 years. Comparable store sales grew 5% year-over-year in the fiscal fourth quarter, while adjusted earnings rose 16%.
The company is due to report first-quarter earnings results in late May. Analysts expect sales to rise 6.5% year over year to $13.9 billion in fiscal Q1, and revenue to rise 8.7% to $1. Low income growth reflects seasonal cost fluctuations, foreign currency deductions from international sales, and potential price fluctuations.
But as management reported last quarter, quality inventory availability “continues to be outstanding.” This is great for near-term sales, as it allows TJX to offer attractive deals that draw customers into stores.
An area to watch is international growth. It continues to see growth in Europe, Mexico, and the Middle East. Also looking into store development and adding new categories to the e-commerce channel to drive more sales.
TJX is performing as well as anyone in the retail industry, as evidenced by its consistent financial history. That’s why, at a forward P/E of 30, I wouldn’t call the stock overpriced; it’s probably worth the price.
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John Ballard has positions in Amazon. The Motley Fool has positions and recommends Amazon, TJX Companies, and Walmart. The Motley Fool has a policy of disclosure.
Amazon Just Made a Big Move. 2 S&P 500 Stocks to Watch was first published by The Motley Fool
