On the back of a strong holiday season, retailers are back in the spotlight. To start out the new year, we want to take the time to circle back to two of our previous long ideas on some of the giants in the retail industry: Wal-Mart (WMT) and Target (TGT).
We recommended both of these companies to investors in 2015. So far, both picks have underperformed. WMT is up 1% since our call, vs. 14% for the S&P 500. TGT has dropped by 11% while the S&P is up 6%.
Both stocks still look sound, while earning our Attractive rating. Since these are two of the largest retailers in America, and direct competitors, it seems fair to ask: which is the better stock for investors in 2017?
In this article, we will judge Wal-Mart and Target on five key categories:
Cash Flow Yield
Two stocks enter. One stock leaves. Who will emerge the champion in this faceoff of retail giants?