Is it time to buy Walmart or Costco stock

**Walmart (WMT) and Costco (COST) are both strong retail players with distinct growth focuses.** The decision to buy either stock should align with your investment strategy, considering factors like your risk tolerance, investment horizon, and market outlook. 1. **Financial Performance and Analyst Sentiment**: - **Walmart**: Recent earnings show resilience with strong revenue of $177 billion and a 4.8% year-over-year growth. Despite tariff-related challenges, Walmart raised its annual forecast, showing confidence in its strategic investments and low-price focus. Analysts maintain a bullish outlook with a consensus price target of $114.05, indicating potential upside. - **Costco**: Costco's Q3 fiscal 2025 net sales increased by 8% year-over-year to $62 billion, with e-commerce emerging as a key driver. Strong fundamentals and consistent profitability are evident, though mixed analyst ratings reflect some caution. The average analyst price target is $1120, suggesting room for growth from current levels. |code|Ticker|Name|Date|P/E(TTM)|P/S|Price to Book Ratio|market_code| |---|---|---|---|---|---|---|---| |WMT|WMT.N|Walmart|20240826|32.251137|0.9320899131841137|7.52279531300235|169| |COST|COST.O|Costco Wholesale|20240826|55.162545|1.6981431636263131|18.174679264629095|185| |WMT|WMT.N|Walmart|20240827|32.293556|0.9333158633527106|7.53268982216058|169| |COST|COST.O|Costco Wholesale|20240827|56.175547|1.7293277626244592|18.508437982343484|185| |WMT|WMT.N|Walmart|20240828|32.285405|0.933080284582048|7.527742567581465|169| |COST|COST.O|Costco Wholesale|20240828|54.88689|1.6896572995914303|18.08385779537917|185| |WMT|WMT.N|Walmart|20240829|32.429688|0.9372502017318625|7.561383898719447|169| |COST|COST.O|Costco Wholesale|20240829|54.799126|1.6869555222529697|18.05494154283772|185| |WMT|WMT.N|Walmart|20240830|39.917318|0.9471844161181856|7.353376901650261|169| |COST|COST.O|Costco Wholesale|20240830|55.154511|1.6978958178136372|18.17203200207248|185| 2. **Valuation and Dividend Yield**: - **Walmart**: With a P/E ratio of 35.92, Walmart's valuation is lower than Costco's 53.24, indicating potential relative undervaluation. While Walmart's dividend yield is modest at 0.9%, it offers a stable income stream. - **Costco**: Its high P/E ratio of 55 suggests a premium investors are paying for its stable earnings growth. Costco's dividend yield is not prominently featured in the available data, which may be due to its history of not paying dividends. 3. **Technical Indicators and Market Momentum**: - **Walmart**: The stock is near an all-time high, showing strong technical momentum with a Trend Seeker "Buy" signal. Institutional confidence is evident with a positive sentiment score of 77 out of 100. - **Costco**: Technical indicators are positive, with a recent 1.75% price rise reflecting bullish sentiment. However, mixed money-flow trends and potential overbought conditions suggest cautious optimism. 4. **Strategic Positioning and Growth Prospects**: - **Walmart**: Its e-commerce sales surged by 25% in Q2, and a sharper online strategy differentiates it in the retail sector. International expansion and investments in technology are expected to bolster its global presence. - **Costco**: Digital commerce is a key growth engine, with website traffic and average order value increasing in Q3. Its unique warehouse model and emphasis on customer experience provide a competitive edge. **In conclusion, both Walmart and Costco offer compelling investment cases**, but they cater to different investor profiles. Walmart is more attractive for those seeking stable dividends and a lower valuation with strong growth potential. Costco appeals to investors looking for high-quality retail assets with a proven track record and e-commerce growth. Consider your investment goals and risk tolerance to decide which stock aligns better with your strategy.