These 2 Beaten-Down Stocks Have a $76 Billion Problem on Their Hands
Target (NYSE: TGT) and Walmart (NYSE: WMT) were each beneficiaries of the coronavirus pandemic. Non-essential businesses were forced to close, dining at restaurants was restricted, and folks were sent home for remote working. That left people with fewer places they could spend their time and money.
Target and Walmart were deemed essential businesses and allowed to stay open. As a result, they captured billions of additional spending from a restricted population. The only trouble was getting enough inventory to fulfill an insatiable customer appetite.
To solve the inventory shortages, Walmart and Target started increasing their orders with suppliers. However, they were competing with other large businesses like Amazon (NASDAQ: AMZN), Home Depot (NYSE: HD), and Macy's (NYSE: M) that were also boosting their orders. This created bottlenecks with manufacturers, ships that bring the products from overseas, and logistical capacity within the U.S.
Source Fool.com
