Target and Walmart Expected to be Front-Runners for This Holiday Season
According to research firm Cowen, big box retailers Target and Walmart are expected to be the top holiday picks this year.
The firm has called it an “inequitable” holiday season “where value matter most.”
Bank of America Merrill Lynch also said it sees upside to the retailers’ third and fourth quarter same-store sales numbers, on the heels of their quarterly earnings.
Cowen analyst Oliver Chen has said that the companies’ curbside pickup “should help both retailers win over late holiday season shoppers.”
Consumer surveys that Cowen has reviewed “suggest an uptick in concern over future economic uncertainty year over year, which could lead to lower absolute spending levels, plus higher promotions to entice shoppers,” Chen wrote.
“With this caution in mind, we favor value-oriented stocks this holiday, and believe that the environment is favorable for value momentum to continue at both Walmart and Target.”
Walmart so far is up 28% this year and Target has gained 66%.
Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.