Walmart vs. Target: Deflation Fuels Clash of the Retail Titans

Who will come out on top this holiday season? Find out... [Derby City Daily logo]( [Derby City Daily logo]( December 12, 2023 [Walmart vs. Target: Deflation Fuels Clash of the Retail Titans]( By Andy Swan 📩 Your Invitation to The Dark Pools Summit Is Waiting: Did you know that Wall Street places many of its trades in secret, on private networks known as the Dark Pools? Most don’t know this at all – and if they do, they’re only seeing a fraction of it... which is why TOMORROW, Wednesday, December 13, one insider is going to pull back the curtain on these secret corners of the market – and how they led to the biggest prediction of his career. It’s a free event, all you have to do is RSVP to join in: [Click here to be automatically registered for The Dark Pool Summit](. Just in: Today’s Consumer Price Index (CPI) report revealed that prices in November cooled to their lowest level in five months, bringing the U.S. inflation rate to 3.1%. U.S. Inflation Rate (tradingeconomics.com) Good news for retailers, right? Lower prices should drive more consumers into stores as they seek deals on holiday gifts. After all, Americans are set to spend a record $957.3 and $966.6 billion [this holiday season](. But deflation – the overall decrease in the price of goods and services – presents its own challenge for retailers. And as it does, we’re seeing a notable divergence form between two of the sector’s biggest titans: Walmart (WMT) and Target (TGT). Who will come out on top? Let’s find out... Clash of the Retail Titans: WMT vs. TGT Walmart is the nation’s number-one retailer, bringing in nearly half-a-trillion dollars in sales last year. It's also the largest grocer in the country, claiming over 25% of the market share... That position has historically given Walmart an edge over competitor Target, which emphasizes a broader range of goods including home items, apparel, and beauty products. True to form, Walmart's shares have risen approximately 8% over the last nine months, while Target's have declined around 16% in the same period. But mixed earnings results in November sent WMT and TGT in vastly different directions... ✓ TGT surged 18% following a "not as horrible as expected” report on November 15. Target reported a drop in total revenue to $25.4 billion, down 4.2% year-over-year, and a nearly 5% decline in comparable sales. But earnings came in stronger than expected at $2.10 per share, significantly higher than the anticipated $1.48. On the other hand... ✓ WMT closed 8% lower, despite a "great but not mind-blowing" report on November 16. Walmart exceeded Wall Street's earnings estimates with an adjusted earnings per share (EPS) of $1.53, marginally above the expected $1.52; revenue of $160.80 billion also surpassed forecasts. However, a cautious outlook and a slight downward adjustment in its full-year earnings forecast tempered investor enthusiasm. Even strong grocery sales and digital growth couldn't fully offset the impact of these revised expectations. These moves are creating a more level bar for both companies heading into the holiday season, and bringing their stocks closer to parity. So – where do we go from here? The differentiating factor for these retailers going forward will be how well they can handle the emerging trend of deflation. [And this is where LikeFolio data can offer key insights, straight from the consumers who matter most. Take a look at what we found...]( [Click here to continue reading]( Until next time, [Andy Swan's signature] [Andy Swan's signature] Andy Swan Founder, LikeFolio P.S. I want to make sure you saw the 2024 prediction event Landon and I recently put out: [Watch it here](. That's where we share our biggest investing calls for the new year, including the tiny $6 player about to dominate a $300 billion industry. Some may find it controversial... but trust me. [You’ll want to know this name before the year is up](. Get Instant Access Click to read these free reports and automatically sign up for research throughout the week. [25 Doomed Blue Chip Stocks]( [The Infinite Income Manifesto]( © 2023 TradeSmith, LLC t/a Derby City Insights. All Rights Reserved. 1125 N. Charles Street, Baltimore, MD 21201 To unsubscribe or change your email preferences, please [click here](. [Terms of Use]( | [Privacy Policy](