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Globe and Mail
a day ago
- Business
- Globe and Mail
Walmart vs. The TJX Companies: Which Retailer Has the Edge in 2025?
As consumers prioritize value in today's cost-conscious retail environment, two retail leaders — Walmart Inc. WMT and The TJX Companies, Inc. TJX — have emerged as top contenders for investor attention. WMT leverages its massive scale and low-price strategy to dominate everyday essentials, while TJX excels in the off-price retail segment, offering well-known brands at significant discounts through stores like T.J. Maxx and Marshalls. The key question for investors is: which stock delivers stronger value right now? Both companies are performing well in a cautious consumer environment, but they operate with very different playbooks. Walmart is investing heavily in technology, logistics, and high-margin initiatives like advertising and memberships to drive growth. The TJX Companies, meanwhile, thrives on agility and treasure-hunt shopping experiences, supported by a global footprint and lean operations. Let's break down how WMT and TJX stack up across key areas like business fundamentals, growth outlook, valuation and earnings potential — and what it means for investors in 2025. The Case for WMT Walmart is delivering steady growth in 2025, driven by its massive retail footprint and ongoing investments in digital innovation. Its successful omnichannel strategy — combining physical stores with a fast-growing e-commerce platform — is helping the company attract consistent traffic across channels. With diversified revenue streams that include brick-and-mortar sales, online shopping, advertising, and memberships, Walmart has built a resilient and scalable business model that is well-positioned for long-term success. Walmart is gaining momentum from high-margin growth drivers like Walmart Connect, its retail media advertising platform, and Walmart+, its paid membership program. In the first quarter of fiscal 2026, advertising revenues surged 50%, while membership income rose 14.8%. These results highlight Walmart's effective shift toward tech-driven, higher-margin services that boost both profitability and customer retention. A key driver of Walmart's ongoing success is its advanced omnichannel strategy. The company continues to invest heavily in data analytics, digital infrastructure, and in-store enhancements to create a seamless shopping experience across both physical and online platforms. In the fiscal first quarter, global e-commerce sales grew 22%, fueled by strong demand for store-fulfilled pickup and delivery options. Backing this growth is Walmart's enhanced last-mile delivery network, which is on track to offer same-day delivery to 95% of U.S. households — a major advantage in today's speed-focused retail landscape. Walmart has entered 2025 on strong footing, but management has cautioned about potential headwinds ahead, particularly from tariffs and broader economic uncertainty. In addition, currency fluctuations may impact performance across international markets. Still, WMT's expanding e-commerce presence, compelling value proposition and rising contributions from high-margin areas offer a solid buffer against short-term volatility and help support long-term growth. The Case for TJX The TJX Companies has consistently proven its ability to execute in challenging environments. The company's strength lies in its flexible sourcing, quick inventory turns and international diversification. It is not just about offering low prices — it is about offering premium brands at a discount, a model that continues to resonate with shoppers seeking value and variety. The company's off-price retail model continues to resonate with a broad customer base, as seen in the steady rise in customer transactions and comparable store sales. In the first quarter of fiscal 2026, TJX's comparable store sales rose 3%, led by higher customer traffic across both apparel and home categories. Growth was consistent across all divisions, including Marmaxx and HomeGoods in the United States, as well as TJX Canada and TJX International, reinforcing the company's strong value proposition. The TJX Companies continues to build on this momentum through global expansion and digital growth initiatives. It ended the quarter with 5,121 stores, adding 36 new locations during the period. The company is also enhancing its e-commerce presence to capture additional market share as more consumers shop online. Internationally, TJX is growing its TK Maxx banner in Europe and Australia and plans to enter Spain in fiscal 2027. Strategic investments in Grupo Axo in Mexico and Brands For Less in the Middle East are opening new growth avenues in promising global markets. A key advantage for TJX is its flexible supply chain and healthy inventory position, with total inventory up 15% year over year. This ensures a steady flow of fresh merchandise and supports its treasure-hunt shopping appeal. While near-term challenges like higher payroll costs, tariff pressures, and currency fluctuations may weigh on margins, The TJX Companies is taking proactive steps to mitigate these risks. How Does the Zacks Consensus Estimate Compare for WMT & TJX? The Zacks Consensus Estimate for Walmart's fiscal 2026 earnings per share (EPS) has been steady at $2.59 over the last 30 days, suggesting year-over-year growth of 3.2%. In contrast, the EPS estimate for The TJX Companies' fiscal 2026 has moved down by a penny to $4.46, indicating year-over-year growth of 4.7%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Price Performance & Valuation of WMT & TJX Over the past 12 months, Walmart stock has delivered an impressive 39.8% return, significantly outpacing the broader S&P 500 Index, which rose 9.5% during the same period. Meanwhile, The TJX Companies has recorded 11% growth in its stock price. One-Year Price Performance From a valuation standpoint, Walmart currently trades at a forward price-to-earnings (P/E) ratio of 35.10x. Meanwhile, The TJX Companies trades at a more modest forward P/E of 26.42x. Bottom Line Both Walmart and The TJX Companies are well-positioned to benefit from today's value-driven retail environment. While TJX continues to perform well with its off-price model, global store expansion, and solid customer traffic, Walmart's broader revenue streams — including advertising, memberships, and e-commerce — provide stronger earnings visibility and higher-margin growth. With a more consistent EPS outlook, superior stock performance and ongoing investments in digital transformation, Walmart emerges as the more attractive retail stock heading into the second half of 2025. TJX and Walmart currently carry a Zacks Rank #3 (Hold) each. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. The TJX Companies, Inc. (TJX): Free Stock Analysis Report Walmart Inc. (WMT): Free Stock Analysis Report
Globe and Mail
2 days ago
- Business
- Globe and Mail
Walmart Sees Continued Comps Gains: Will Broad-Based Strength Support?
Walmart Inc. WMT continues to prove its retail dominance with another strong record in comparable sales. For the first quarter of fiscal 2026, Walmart U.S. reported comparable sales growth of 4.5%, excluding fuel, driven by transaction improvement of 1.6% and an average ticket increase of 2.8%, as well as strong e-commerce growth. The gains were broad-based, with notable momentum in food and consumables, wherein Walmart continues to gain market share. Health and wellness also surged with high-teens growth, thanks to strong prescription volumes and over-the-counter products. Complementing the strong performance at Walmart U.S., Sam's Club U.S. posted a robust 6.7% increase in comparable sales, excluding fuel. The rise was primarily volume-driven, with strength in Member's Mark products. Walmart's ability to deliver consistent comparable sales gains stems from its balanced omnichannel strategy, featuring faster delivery speeds, which includes a 91% year-over-year rise in sub-three-hour delivery, disciplined inventory management and aggressive price rollbacks. More than 5,000 items saw price reductions in the fiscal first quarter, enhancing Walmart's value proposition across key categories. The retailer also leaned on private label strength, with grocery private brand penetration up 60 basis points compared with the last year. This performance demonstrates Walmart's agility and customer relevance amid economic and trade-related headwinds. As the company navigates tariff-related pressures, the replenishment-heavy model and deep supply-chain partnerships are helping it remain flexible, protect margins and support price leadership in a volatile cost environment. How are WMT Rivals TGT & COST Approaching Comparable Sales? While Walmart U.S. delivered comparable sales growth, two of its competitors, Target Corporation TGT and Costco Wholesale Corporation COST, offer an instructive contrast. Target is pursuing long-term growth through digital expansion, marketplace scaling and store investments. Despite a 3.8% decline in comparable sales in the first quarter of fiscal 2025, Target continues to see strength in same-day services like Drive Up and Shipt. The company is also growing the Target Plus marketplace, positioning it for future comparable sales improvements through innovation and customer convenience. Costco, by contrast, reported comparable sales growth of 5.7% in the third quarter of fiscal 2025, with U.S. comparable sales up 6.6%. Its brand name, geographical reach and curated product breadth continue to attract value-conscious shoppers. Costco's favorable product mix, steady store traffic and member-driven pricing model underpin solid comparable sales momentum. WMT's Price Performance, Valuation & Estimates Shares of Walmart have gained 9.7% in the past three months compared with the industry 's growth of 9.3%. From a valuation standpoint, WMT trades at a forward price-to-earnings ratio of 34.8X, significantly up from the industry's average of 31.97X. The Zacks Consensus Estimate for WMT's fiscal 2026 earnings implies year-over-year growth of 3.2%, whereas its fiscal 2027 earnings estimate indicates a year-over-year uptick of 11.6%. WMT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Target Corporation (TGT): Free Stock Analysis Report Walmart Inc. (WMT): Free Stock Analysis Report Costco Wholesale Corporation (COST): Free Stock Analysis Report This article originally published on Zacks Investment Research (
Yahoo
7 days ago
- Business
- Yahoo
UBS Sticks with Walmart After Strong Start to the Year
Walmart Inc. (NYSE:WMT) is one of the best stocks for a retirement stock portfolio. In a note shared on June 10, analyst Michael Lasser of UBS suggested that holding shares of top-tier retailers might offer some level of safety during uncertain times. A manager standing in a hypermarket, pointing out items available for wholesale. He expressed a preference for Walmart Inc. (NYSE:WMT), and his firm reportedly indicated that the stock could see significant gains if the broader economic outlook improves, offering investors both downside protection and growth potential. Lasser was said to have highlighted Walmart Inc. (NYSE:WMT) as one of the few retailers with a clear path to upward revisions in earnings estimates under current conditions. He also commended the company's scale, operational network, and progress in e-commerce. Walmart Inc. (NYSE:WMT) is a solid dividend payer, with 52 consecutive years of dividend growth under its belt. The stock is up by nearly 5% in 2025 so far, outperforming the broader market. While we acknowledge the potential of WMT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure. None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
7 days ago
- Business
- Yahoo
UBS Sticks with Walmart After Strong Start to the Year
Walmart Inc. (NYSE:WMT) is one of the best stocks for a retirement stock portfolio. In a note shared on June 10, analyst Michael Lasser of UBS suggested that holding shares of top-tier retailers might offer some level of safety during uncertain times. A manager standing in a hypermarket, pointing out items available for wholesale. He expressed a preference for Walmart Inc. (NYSE:WMT), and his firm reportedly indicated that the stock could see significant gains if the broader economic outlook improves, offering investors both downside protection and growth potential. Lasser was said to have highlighted Walmart Inc. (NYSE:WMT) as one of the few retailers with a clear path to upward revisions in earnings estimates under current conditions. He also commended the company's scale, operational network, and progress in e-commerce. Walmart Inc. (NYSE:WMT) is a solid dividend payer, with 52 consecutive years of dividend growth under its belt. The stock is up by nearly 5% in 2025 so far, outperforming the broader market. While we acknowledge the potential of WMT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure. None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-06-2025
- Business
- Yahoo
Jim Cramer on Walmart Stock: 'It'll Burst Through'
Walmart Inc. (NYSE:WMT) is one of the 15 stocks that Jim Cramer recently talked about. A caller asked for Cramer's thoughts on Walmart Inc. (NYSE:WMT), and he stated: 'Alright, Walmart's been stuck at this level. Well, usually when that happens, it's just a, it's gaining momentum. It'll burst through. I think it gets to 110.' A manager standing in a hypermarket, pointing out items available for wholesale. Walmart. (NYSE:WMT) operates a vast network of retail stores, ecommerce platforms, and membership clubs. The company provides a wide range of consumer goods, groceries, health services, electronics, and financial products through both physical and digital channels. The Mad Money host made the following remarks about the company in May: 'Was Walmart really supposed to eat all the tariffs that had been put on the goods it carries? It sure sounds like it. Take a look at the President's posting this weekend, 'Walmart should STOP trying to blame tariffs as the reason for raising prices throughout the chain. Walmart made BILLIONS OF DOLLARS last year, far more than expected. Between Walmart and China, they should, as is said, EAT THE TARIFFS, and not charge valued customers ANYTHING. I'll be watching and so will your customers'… While we acknowledge the potential of WMT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
