Buy, Sell, Hold: Amazon, Costco, and Walmart Stock Edition

From NASDAQ: 2024-06-30 07:30:00

U.S. retail giants Amazon, Walmart, and Costco generate $1.5 trillion in revenue annually, outperforming the stock market. Despite being blue-chip stocks, one is a buy, one is a hold, and one is a sell based on varying price tags and future prospects. Amazon leads in e-commerce and cloud services, poised for long-term growth potential.

Walmart, America’s largest retailer, thrives on low prices and a massive store network. While the company is positioned to shine in a recession, its premium stock valuation of 28x forward P/E may deter investors. Walmart’s steady growth may justify holding onto shares, but buying at current valuation levels is debatable.

Costco Wholesale, renowned for its value proposition and loyal following, faces an expensive stock dilemma. With a forward P/E of over 52 and modest growth projections, the stock lacks a margin of safety. Investors should consider selling due to overvaluation and potential risks in a recession scenario.



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