Retail stocks are having a tough year. That's because consumer spending patterns have slowed in 2023, especially around discretionary purchases like home furnishings and electronics. The shift caught many companies by surprise, leading to inventory overhang and profit margin pressures.

But these businesses are adjusting well to the new realities in the market. In fact, both (NYSE: TGT) and Walmart (NYSE: WMT) in mid-November announced solid third-quarter sales growth trends. Their management teams sounded cautiously optimistic heading into the holiday shopping crush, too.

Both retailers are likely to emerge stronger from this latest cyclical downturn, but which stock is a better choice for your portfolio? Let's compare.

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Source Fool.com