Better Buy: Walmart vs. Target
With macroeconomic issues like higher interest rates and stubborn inflation pinching consumers' ability to spend, retailers are bracing for tougher times ahead. Two of the best-known companies in the industry, Walmart (NYSE: WMT) and Target (NYSE: TGT), are preparing for a notable slowdown, as growth expectations for the current fiscal year are muted.
So, which of these top retail stocks is the better buy? Is it the 800-pound gorilla that is Walmart, or the much smaller but still formidable Target? It's time to go shopping for the right clues to find out.
One of the most obvious reasons one would consider owning Walmart shares, especially right now, is due to the unfavorable macroeconomic backdrop. With its intense focus on providing low prices, Walmart's value proposition is put on full display when inflation is running hot and customers are looking to save money. Even more impressive for shareholders, Walmart posted solid gains during the Great Recession, as well as throughout the coronavirus pandemic. This is a durable business, one that was able to post healthy U.S. same-store sales growth of 6.6% last fiscal year.
Source Fool.com
