From Nasdaq.: 2024-05-27 17:00:00

Target (NYSE: TGT) reported a 3% revenue drop in the first quarter of fiscal 2024, totaling $24.53 billion. Despite missing the consensus forecast for adjusted EPS at $2.03, the stock dropped as comps fell 4% for the fourth consecutive quarter. Meanwhile, Walmart (NYSE: WMT) enjoyed a 37% stock rally in the same period due to its scale, diversification, and better sales performance. With Walmart operating more stores globally and showing better comps and earnings growth, it’s expected to continue outperforming Target in the future.

Walmart’s diversification, rising comps, and strong earnings growth contribute to its higher valuation compared to Target. While Target is struggling with low comps and falling behind Walmart in the U.S. market, Walmart is expected to continue outperforming Target due to its impressive growth trajectory. Consequently, investors may want to consider Walmart over Target for a promising investment opportunity.



Read more at Nasdaq.: 4 Reasons to Forget Target and Buy Walmart Instead