Walmart Inc (WMT)

WMT vs. COST vs. AMZN Costco has a good management team, good long-term grower, make strategic, smart decisions. Walmart just jumps around too much. They should stick to their knitting, but instead management is always trying to play catch up in different arenas. But, quite frankly, the one to own in this space is Amazon.

Recent retail sales data in the US shows that about 40% is concentrated in the 4 names of Walmart, Home Depot, Lowe's, and Target. Going forward, this is a play on the US GDP. If you believe the economy will chug along at a decent rate, this is the one to buy. If not, then look at one of the niche e-retailers.

They are one of the few that are going to survive on the retail side. The problem is that they constantly bought assets and then squashed those businesses. It doesn't help them against AMZN-Q. They are having trouble competing with Amazon Prime. They are not having trouble moving into the digital world. They have used their balance sheet to constantly buy assets. They have a good existing business but they don’t understand what they want to use their digital presence for. AMZN-Q will be higher in five years.

It's made great strides to compete with Amazon with next-day delivery. He'd still prefer Amazon, but Walmart will continue to do well. Discount retailers will. Amazon could pull back in this earnings period.

$3.5 billion investment in warehouses and Shopify deal They're one of the few companies that can compete with Amazon, given how they're pushing their online business aggressively through the Shopify deal. (Target can also compete.) Walmart has done all the right things. They've executed well online and have performed well during this pandemic. Walmart will continue to invest in e-commerce with strong supply chain management. It's a great story.

Fallen below 200-day moving average. Technicals don't look great. Mid-single digit growth rate. Dollar General or Target are better names. Valuation is expensive.