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:
Profitability
Valuation
Cash Flow Yield
Corporate Governance
Growth Opportunities
Two stocks enter. One stock leaves. Who will emerge the
champion in this faceoff of retail giants?
Source: ValueWalk
With the recent price drop in Target, we bought some shares to dividend account. Hopefully, they will get their Dividend King Status later this year.
ReplyDelete