Best Stock to Buy Now: Walmart vs. Target

A rapid sale of the stock market is to test investor patience. Recent tariff implementation and suspensions have created a lot of short-term uncertainty.

That’s especially true globally Retailers Like Walmart (NYSE: WMT) and target (NYSE: TGT) We sell products and spring materials in a variety of countries. However, if your overall stock is down, you can use this as a purchase opportunity. If the long-term foundation remains healthy.

Which of these two retail giants offers better investment potential for those planning to buy and hold over the long term?

The two go shopping in the store. — Image source: Getty Images.

Walmart operates stores of the same name in the US and internationally. It also runs Sam’s Club, a membership club with a warehouse in the US and Puerto Rico. The Walmart US business accounted for 69% of its $676.3 billion revenue last year.

The business was founded with keeping costs and prices very low, but that remains true. Management continues to invest heavily in technology that combines physical stores with e-commerce to provide convenience and fast delivery.

For example, almost every US Walmart store has same-day pickup and delivery. Management also launched Walmart+, a subscription service several years ago that offers free shipping, gas discounts and a more efficient checkout process.

Low prices and convenience continue to attract customers. Walmart US segment saw it Sales at the same store (COMPS) This will increase by 4.6% in the fourth quarter of 2025. Higher traffic contributed 2.8% points. Expenses are increasing due to balance. This period ended on January 31st.

The company remains extremely profitable and is in a good position to increase investment ahead of the competition. Adjusted to certain non-operating costs, operating profit for the fourth quarter, excluding foreign currency fluctuations, rose 9.4% to $7.9 billion.

Walmart’s stock price has not been spared from recent stock market sales. Stocks fell 0.8% in 2025 (until April 9th), S&P 500 Index. However, that index has fallen further during the recent market slump.

That evaluation has remained constant since the beginning of the year. The ratio of the price to return (P/E) of the stock is 37.

Target sells a wide range of products, including apparel, beauty, home furniture, food/drinks, and home essentials. It aims to distinguish itself by offering products under its own brand and brands that are only sold in its stores and websites.

The company’s sales have been smashed lately as consumers focus on basic items as they triggered rising costs. Still, target’s fourth quarter comps rose 1.5%, driven by an increase in traffic that contributed 2.1% points. The amount spent by the customer was dropped by 0.6% points. The period ended on February 1st

The target’s total margin was 26.2%, earning 0.4% points. This is partly due to higher promotional activities and markdowns.

Management gives a careful view of the year, including flat-comp, but higher traffic shows that people still prefer to shop at target. They are just cutting their spending now and are attracted to discounts. It is probably due to a larger economic force that calms down at some point.

Target’s stock price hit the jaw. The stock price has fallen nearly 28% this year. This is due to the economic impact of tariff implementation and fears on target costs and prices that affect short-term profitability.

However, the stocks have been cheaper. The stock will trade at 11 P/E, which fell from 14 in early 2025.

I like both retailers. Walmart’s ultra-low prices always attract customers. That is especially true in a challenging economy. As a result, the stock price is maintained relatively well.

Targets rely on differentiated products, and their customers can trade with low-priced products when difficult times come. But in the long run, people will probably return to their target.

Based on the attractive ratings of the target and a favorable long-term outlook, I now choose its inventory over Walmart.

Consider this before purchasing stocks at Walmart.

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Lawrence Rothman, CFA There is a position on the target. Motley Fool has and recommends target and Walmart positions. To Motley’s fool Disclosure Policy.

Best Stock to Buy Now: Walmart vs. Target Originally published by The Motley Fool

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