Better Buy: Walmart or Costco?
Recession-proof stocks can be a safe haven for investors during times of economic turmoil. When the economy slows, consumers look to stretch their dollars, often trading down from name brands and even choosing different retailers to buy from instead.
Budget-friendly retailers Walmart (NYSE: WMT) and Costco Wholesale (NASDAQ: COST) have business models that benefit from these recent shopping trends. Let's look at which consumer staples stock makes a better buy in today's market.
Through pandemic lockdowns, recession fears, and persistent inflation, Walmart's defensive business model has remained stable, although the company faces its fair share of challenges. As the current economy reshapes consumer behavior, Walmart's discount prices have converted higher-income shoppers. The numbers don't lie, and these more affluent shoppers boosted second-quarter sales substantially.
Source Fool.com