Better Buy: Costco or a 50-50 Split of Target and Walmart?
Over the past month, Costco Wholesale (NASDAQ: COST), Target (NYSE: TGT), and Walmart (NYSE: WMT) have seen their share prices fall over 25% -- far worse than the 12.5% decline in the S&P 500 or even the 15.6% drop in the Nasdaq Composite over that time frame. These companies tend to be steady performers and reliable dividend stocks. So what's going on?
The sell-off stems from broader market volatility, valuation concerns, and weak guidance from Target and Walmart that suggests these companies will face increased margin pressure if inflation remains out of control. The good news is that investors waiting to scoop up shares of these well-known businesses can now do so for a cheaper price.
Let's break down where each company is and where it could be headed from here to determine if Costco is the better buy or if investors could do well with a 50/50 split of Target and Walmart.
Source Fool.com
