Is Walmart or target a better stock?
Valuation
Conclusion: Neutral on WMT, Bullish on TGT
Thus, while both big-box retailers are likely worth buying and holding for the long term, especially to collect their dividend payments, Target looks like the clear winner with the potential for greater upside in the near term.
From fiscal 2024 to fiscal 2026, analysts expect Walmart's revenue to rise at a CAGR of 4% as its EPS grows at a CAGR of 35%. Its stock still looks reasonably valued at 26 times forward earnings, its dividend offers a decent forward yield of 1.4%, and management has raised the payout annually for 51 consecutive years.
Is Target stock a Buy, Sell or Hold? Target stock has received a consensus rating of buy. The average rating score is and is based on 60 buy ratings, 35 hold ratings, and 1 sell ratings.
While Costco appears to have the best growth prospects, that isn't enough to make it the best investment. Walmart trades at a lower valuation, and its higher dividend yield means you will receive more in dividend payments than you would on the same amount of money invested in Costco. That makes Walmart the winner.
The world's leading retailer has proven it can expand its business (and protect profit margins) in a tough selling environment. Its massive global sales footprint is another positive factor for the stock compared to Target's more volatile path to sustainable growth.
Walmart Business Model
Walmart also seems more efficient in business operations than Target—this is reflected in its higher inventory and asset turnover, as well as its operational dollar generated per dollar of asset. Walmart commands nearly 20 times the market share of Target.
An investment of $1,000 at the start of 1980 would be worth over $1.9 million today. Watch Walmart stock trade in real time here.
Walmart's analyst rating consensus is a Strong Buy. This is based on the ratings of 28 Wall Streets Analysts.
Stability and Brand Name. With Walmart, it is pretty well-known what an investor is going to get from an operational perspective. Walmart remains a stable company that should be viewed as a long-term blue-chip investment. Roughly 75% of Walmart's store management began their careers as hourly employees with the company ...
What is the hottest stock to buy right now?
| Company (ticker) | Analysts' consensus recommendation score | Analysts' consensus recommendation |
|---|---|---|
| Amazon.com (AMZN) | 1.30 | Strong Buy |
| Microsoft (MSFT) | 1.32 | Strong Buy |
| Delta Air Lines (DAL) | 1.35 | Strong Buy |
| Nvidia (NVDA) | 1.38 | Strong Buy |
| Company (Ticker) | Forward P/E Ratio |
|---|---|
| Citigroup, Inc. (C) | 8.4 |
| Fidelity National Information Services, Inc. (FIS) | 15.3 |
| Intuitive Surgical, Inc. (ISRG) | 60.9 |
| The Kraft Heinz Company (KHC) | 12.2 |
On a historic basis, Target has generated cash flow growth of 5.3%, and is expected to report cash flow expansion of 26.3% this year. TGT should be on investors' short lists because of its impressive growth fundamentals, a good Zacks Rank, and strong Growth and VGM Style Scores.
Jim Walton owns the most shares of Walmart (WMT). The ownership structure can impact the company's decision making, as large institutional investors may exert influence on the company's management and can also affect the company's stock price with their buying and selling patterns.
A long history of dividends adds the icing on the cake, providing a source of passive income. These various factors combine to make Walmart a worthy long-term investment. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors.
There are about 10,500 Walmart locations across 20 different countries. Jim Walton, Alice Walton, and Rob Walton are the top three individual shareholders of Walmart. Walmart's largest institutional investors include the John T. Walton Estate Trust, Vanguard Group, and BlackRock.
Walmart. In 2022, Target generated over $109 billion in revenue, mostly from its stores, compared to $572.7 billion form Walmart, coming from stores, e-commerce and Sam's Club.
Heading into Tuesday, Target's stock had dropped 43% since its 2021 peak. Target has slumped because of its merchandise mix and prices compared to rivals like Walmart. The company stocks more non-essential merchandise compared to competitors such as Walmart (WMT) and Costco (COST).
While Wal-Mart, the largest company in the world, has always dwarfed rival Target in size ($406 billion in annual revenue vs. Target's $65 billion), until recently Target had been decisively winning the growth game.
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Why do people like Target over Walmart?
Walmart has taken a more traditional house-brands approach, where value is the core offering. Target, however, has worked steadily to make its house brands exciting in ways that create value rather than making them feel like a price-based compromise.
Walmart has 8.32% upside potential, based on the analysts' average price target. Is WMT a Buy, Sell or Hold? Walmart has a conensus rating of Strong Buy which is based on 25 buy ratings, 3 hold ratings and 0 sell ratings.
And if you had invested $1,000 into Walmart a decade ago, your investment would have more than doubled in value and be worth about $2,443 as of Nov.
The first offering, on October 1, 1970, was $16.50 per share. Since then, Walmart stock has split two-for-one 11 times. That means a person who bought 100 shares for $1,650 in 1970 would, 40 years later, have 204,800 shares, worth about $17 million. Quarterly dividends have been paid continuously since 1973.
30, 2024 — Walmart Inc. (NYSE: WMT) announced that it will conduct a split of its outstanding shares of common stock at a ratio of 3:1. The stock split is part of Walmart's ongoing review of optimal trading and spread levels and its desire for its associates to feel that purchasing shares is easily within reach.
