Forget Walmart, Costco Is a Better Retail Stock

From opening its first store in Arkansas in 1962, Walmart (NYSE: WMT) has since become a colossus in the retail industry. Walmart's revenue in fiscal year 2020 totaled $524 billion, and over 2.2 million associates call it their employer.

Walmart's stock is up 23% this year, an impressive feat given the S&P 500's gain of only 11%. The company has done quite well adjusting to a new shopping environment due to the coronavirus pandemic. Its e-commerce sales climbed 97% in the quarter that ended July 31, bolstered by the success of curbside pickup and same-day delivery via the nascent Walmart+ subscription service. Investors should be pleased with the recent results.

However, the leader of the Fortune 500 will find it difficult to move the needle much going forward, a symptom of its sheer size. Consensus analyst estimates for sales figures forecast 1% to 2% growth in fiscal 2022 and 2023 following a paltry 4.5% advance this year.

Source Fool.com