Wal-Mart, Costco Will Outperform in Face of Amazon

Style Magazine Newswire | 6/30/2017, 9:33 a.m.
Wal-Mart Stores Inc. and Costco Wholesale Corporation benefit from key advantages that will allow their shares to outperform even as …

Source: Investopedia.com

Wal-Mart Stores Inc. and Costco Wholesale Corporation benefit from key advantages that will allow their shares to outperform even as the broader retail industry struggles with the headwinds created by the rise of Amazon.com, Inc. as noted by a broker dealer with Cowen & Co. and reported on by Barron's. It was further reported by Barron's the advantages the major retailer has. Wal-Mart has invested billions into cutting its prices, and it continues to focus on providing appealing cost-savings. Further, Wal-Mart's customers have a lower average income than those of other companies in the grocery space, making Wal-Mart less susceptible to competition, according to Cowen & Co. Finally, roughly 90% of the people in the United States live within 10 miles of a Wal-Mart store. After closing at a more-than six-month low of $157.13 on Friday, June 23, Costco shares have recovered somewhat, climbing 2% through the close of trading on Monday, June 26, according to Google Finance. Shares of Wal-Mart, on the other hand, have risen roughly 8.5% in the last three months and 9.2% YTD, additional Google Finance data shows.