Walmart a Top Pick on Wall Street as Consumers Reevaluate Spending
- Analysts note Walmart’s strength in necessities like groceries
- ‘In tougher times, Walmart tends to shine’: Telsey’s Feldman
Shopping carts sit at a Walmart store in Rohnert Park, California.
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Walmart Inc. shares are far outshining those of Target Corp. and other retail peers, as Wall Street anticipates the shopping behemoth’s broad array of household necessities will offer more shelter from slowing economic growth.
One year after both firms shocked Wall Street by slashing profit projections in the face of swelling inventories, Walmart’s stock has proven the sure winner among investors. Its shares have climbed about 22% in the past 12 months, adding some $67 billion of market capitalization — almost the same as Target’s entire market value. In the same period, Target is down about 6%, while the 87-member S&P Retail Select Industry Index has dropped close to 5%.