As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the non-discretionary retail industry, including Dollar Tree (NASDAQ: DLTR) and its peers.

Food is non-discretionary because it's essential for life (maybe not those Oreos?), so consumers naturally need a place to buy it. Selling food is a notoriously tough business, however, as the costs of procuring and transporting oftentimes perishable products and operating stores fit to sell those products can be high. Competition is also fierce because the alternatives are numerous. While online competition threatens all of retail, grocery is one of the least penetrated because of the nature of the product. Still, we could be one startup or innovation away from a paradigm shift.

The 9 non-discretionary retail stocks we track reported a satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 1.5% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady as they are up 2.8% on average since the latest earnings results.

Dollar Tree (NASDAQ: DLTR)

A treasure hunt because there’s no guarantee of consistent product selection, Dollar Tree (NASDAQ: DLTR) is a discount retailer that sells general merchandise and select packaged food at extremely low prices.

Dollar Tree reported revenues of $4.98 billion, up 7.2% year on year. This print was in line with analysts’ expectations, and overall, it was a very strong quarter for the company with EPS guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates.

Dollar Tree scored the highest guidance raise but had the weakest full-year guidance update of the whole group. Unsurprisingly, the stock is up 17.3% since reporting and currently trades at $112.42.

Is now the time to buy Dollar Tree? Access our full analysis of the earnings results here, it’s free.

Best Q1: Target (NYSE: TGT)

With a higher focus on style and aesthetics compared to other large general merchandise retailers, Target (NYSE: TGT) serves the suburban consumer who is looking for a wide range of products under one roof.

Target reported revenues of $25.44 billion, up 6.7% year on year, outperforming analysts’ expectations by 3.4%. The business had an exceptional quarter with a beat of analysts’ EPS and EBITDA estimates.

The market seems content with the results as the stock is up 2.6% since reporting. It currently trades at $130.53.

Is now the time to buy Target? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: Walmart (NASDAQ: WMT)

Known for its large-format Supercenters, Walmart (NASDAQ: WMT) is a retail pioneer that serves a budget-conscious consumer who is looking for a wide range of products under one roof.

Walmart reported revenues of $177.8 billion, up 7.3% year on year, exceeding analysts’ expectations by 1.6%. Still, it was a slower quarter as it posted full-year EPS guidance missing analysts’ expectations and EPS guidance for next quarter missing analysts’ expectations.

Walmart delivered the weakest guidance update in the group. As expected, the stock is down 10.5% since the results and currently trades at $117.10.

Read our full analysis of Walmart’s results here.

Costco (NASDAQ: COST)

Designed to be a one-stop shop for the suburban consumer, Costco (NASDAQ: COST) is a membership-only retail chain that sells groceries, apparel, toys, and household items, often in bulk quantities.

Costco reported revenues of $70.53 billion, up 11.6% year on year. This number topped analysts’ expectations by 1.5%. More broadly, it was a mixed quarter as it also produced a solid beat of analysts’ gross margin estimates but a miss of analysts’ EBITDA estimates.

Costco scored the fastest revenue growth among its peers. The stock is down 4.3% since reporting and currently trades at $951.98.

Read our full, actionable report on Costco here, it’s free.

Sprouts (NASDAQ: SFM)

Playing on the secular trend of healthier living, Sprouts Farmers Market (NASDAQ: SFM) is a grocery store chain emphasizing natural and organic products.

Sprouts reported revenues of $2.33 billion, up 4.1% year on year. This print met analysts’ expectations. Taking a step back, it was a mixed quarter as it also logged a narrow beat of analysts’ EBITDA estimates but full-year EPS guidance missing analysts’ expectations.

The stock is up 13.2% since reporting and currently trades at $80.49.

Read our full, actionable report on Sprouts here, it’s free.

Market Update

Late in 2025 into early 2026, there was hand-wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?

These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.

Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.