Target (NYSE: TGT) and Costco (NASDAQ: COST) stocks valuation has diverged in the past year or so. While Wall Street was equally optimistic about both retailers during most of 2021, investors aren't as excited about Target today as they are about the warehouse giant's business.
Both companies recently issued updates describing their latest growth and earnings trends. So, let's see which stock looks more attractive in the context of that early 2023 momentum.
Costco is winning in the growth arena, mainly because its value proposition is the clearest during inflationary times like these. Comparable-store sales were up 7% in January, while Target just reported a 0.7% increase in the quarter that ended in late January .
Source Fool.com