Wall Street walked away from both Wayfair (NYSE: W) and Target (NYSE: TGT) stocks in 2022. The two retailers were hit hard by a surprise stampede away from consumer spending, and they are suffering for it. Sales trends are down and the prospects for weaker earnings appear to extend well into 2023.
The good news is that these previous Wall Street darlings are now much cheaper thanks to that short-term pessimism. With those low expectations in mind, let's look at which retailer would make the better purchase heading into a rocky 2023 fiscal year.
Both companies were caught by surprise when consumers abandoned home furnishing and e-commerce spending in 2022 after having embraced those niches in earlier phases of the pandemic. Wayfair and Target shareholders endured several rounds of declining growth forecasts for the year, along with far weaker profitability due to price cuts aimed at clearing excess inventory.
Source Fool.com