Is Walmart or Target a better investment?

Walmart generally appears stronger for steady growth, e-commerce, and margin expansion via advertising/membership (Walmart+), while Target offers a potentially cheaper valuation and higher dividend yield, attractive for income investors despite recent struggles with discretionary spending. Your choice depends on your strategy: Walmart for consistent growth/stability, Target for value/income as it recovers from consumer spending shifts.

Which is a better stock, Target or Walmart?

Walmart (WMT) stock has significantly outperformed Target (TGT) recently due to its strong "everyday low price" appeal during inflationary times, leading to higher sales and investor confidence, while Target's upscale focus struggled, making its stock cheaper with high dividend yields and potential rebound, but lower near-term growth prospects, creating a classic value vs. growth dynamic with WMT as the current leader and TGT as a potential contrarian play. 

Is Target outperforming Walmart?

However, Walmart's performance on Wall Street has far surpassed big-box retail competitor Target 's across McMillon's time as CEO. Shares of Target are up about 60% since February 2014, compared to Walmart's 312% gains. During the years of the Covid pandemic, Target's steep share gains surpassed those of Walmart.

Why are people switching from Target to Walmart?

“Issues like out of stock (items), messy stores, long wait times, and locked-up products all push consumers away from Target and into the hands of rivals,” Neil Saunders, an analyst at GlobalData Retail, said in a note to clients Wednesday. Target has struggled in recent years.

Is Walmart a good stock to buy right now?

Walmart (WMT) is widely considered a strong buy by analysts due to its resilient business model, strong performance in groceries and e-commerce, ongoing AI investments, and dividend history, though its valuation is high, pricing it as a tech/retail hybrid, with expectations for continued outperformance given its focus on value, say Motley Fool and Zacks Investment Research. While it faces some technical sell signals and high P/E ratios, its strategic growth in automation and e-commerce, plus its appeal to value shoppers, suggest a positive long-term outlook, notes StockInvest.us, MarketBeat, and Yahoo Finance. 

Is Walmart Stock a Smart Investment? Here's What the Experts Say

What to invest $1000 in right now?

How to invest $1,000 right now — wherever you are on your financial journey

• Build an emergency fund. An emergency fund is crucial to your financial health. ...
• Pay down debt. ...
• Put it in a retirement plan. ...
• Open a certificate of deposit (CD) ...
• Invest in money market funds. ...
• Buy treasury bills. ...
• Invest in stocks. ...
• Use a robo-advisor.

What will Walmart stock be worth in 5 years?

But based on what we know and can reasonably presume right now, Walmart's stock price is apt to be around $143 by 2030, if not a bit higher. This assumes annualized appreciation of around 7%. It doesn't, however, factor in any dividends the stock will pay in the meantime.

Why is Walmart better than Target?

Walmart is generally considered better for lowest prices, vast selection (especially groceries with fresh deli/bakery), and overall value, particularly when budgets are tight, while Target wins on store experience, curated style, and trendy private brands, but Walmart's focus on essentials and strong online grocery makes it a practical choice for stretching dollars, notes. 

Why are people canceling Walmart and Target?

Consumers across the U.S. are trying to hit large corporations where they hurt: their bottom line. The group People's Union USA is urging buyers to stop shopping at major companies in protest of corporate control and the rollback of diversity, equity and inclusion initiatives.

Who's bigger, Target or Walmart?

Yes, Walmart is significantly bigger than Target in terms of global store count (over 11,000 vs. under 2,000), total square footage (1.1 billion sq ft vs. 240 million sq ft), and revenue, operating as the world's largest retailer compared to Target's strong but smaller presence. Walmart focuses on scale and volume, while Target emphasizes a more curated, design-focused shopping experience, though they are becoming more similar in some areas, notes this article from Yahoo Finance. 

Is Target stock a buy?

It might be worth the risk. Target (TGT +3.13%) is one of the largest retailers in the United States. It is a Dividend King and has a lofty 4.7% dividend yield. If you have a contrarian bent, you might want to buy this out-of-favor retailer today.

Who is the #1 retailer in the US?

Walmart is the #1 retailer in the U.S. by a significant margin, leading in total domestic sales with figures around $568.7 billion for 2024, followed by Amazon and then warehouse clubs like Costco, according to the National Retail Federation (NRF) and other financial trackers.
 

Is buying Walmart stocks worth it?

Walmart is performing well right now

It is more of a slow and steady giant. However, at the moment, it is actually performing quite well as a business. In the third quarter of 2025, the company's adjusted revenues increased 6%, with adjusted operating income up 8%. Same-store sales in the key U.S. market rose 4.5%.

Is Walmart beating Target?

Since then, this retail battle royal has been no contest. As the chart below shows, Walmart has dominated Target over the past three years, as the two have been virtually mirror images of each other. While Walmart's stock has more than doubled during that time, Target stock has been nearly cut in half.

Why is Target paying $24 an hour?

It's just a good business decision to keep on raising hourly wages for workers as it will help retain the top talent that is driving strong sales and profits, explains Target CFO Michael Fiddelke.

Who owns 51% of Walmart?

Sam Walton's heirs own over 50 percent of Walmart through both their holding company Walton Enterprises and their individual holdings.

Why do people not like Target anymore?

People dislike Target recently due to a combination of factors, primarily backlash from rolling back Diversity, Equity, and Inclusion (DEI) initiatives, which sparked boycotts from progressives, while conservatives who previously boycotted their Pride displays didn't return; compounded by operational issues like messy stores, understaffing, inventory problems, and a perception of declining in-store experience, alongside general economic pressures affecting consumer spending. 

What is the 9 minute rule at Walmart?

The Walmart 9-minute rule is an informal policy allowing associates a ~9-minute grace period to clock in early or late (or leave early) without triggering automatic disciplinary points in the timekeeping system, offering flexibility for minor delays or finishing up tasks, though managers can still address excessive use under productivity, but it's separate from the official attendance points. It's a buffer for the time clock (WOSH) but doesn't necessarily negate points for major lateness or unapproved early departures, with some managers enforcing it strictly or limiting its use for productivity issues. 

Is Target actually struggling financially?

Behind Target's sales declines

For its most recent quarter, Target reported net sales of $25.3 billion, a 1.5% decline from the year-earlier period, missing analyst expectations and continuing a sales slump that dates back to early 2021.

Why are people going to Walmart instead of Target?

Walmart is "beating" Target because its focus on everyday essentials and aggressive pricing appeals to budget-conscious shoppers during economic uncertainty, while Target's reliance on discretionary items (home, apparel) hurts sales as consumers prioritize necessities, giving Walmart strength in groceries, scale, and e-commerce, with its Walmart+ attracting even higher-income shoppers seeking value. 

Who is more ethical, Walmart or Target?

We have found Target, Walmart's competitor, to be a much better example of corporate social responsibility. Target has never been involved in protests or litigation, as Walmart commonly is. Surprisingly, Target does not pay its employees more, on average, than Walmart does. Target may even pay less.

Should I sell or hold Walmart stock?

Walmart (WMT) is overwhelmingly rated as a "Strong Buy" or "Moderate Buy" by Wall Street analysts, citing its strong market position, value focus, dividend history, and growth in areas like e-commerce and Walmart+ memberships, despite some concerns about its current valuation. While a few analysts suggest holding, the consensus leans heavily positive, seeing potential for continued growth as it evolves into a retail/tech hybrid. 

What if I invested $1000 in Walmart 10 years ago?

For Walmart, if you bought shares a decade ago, you're likely feeling really good about your investment today. A $1000 investment made in August 2015 would be worth $4,179.96, or a 318.00% gain, as of August 15, 2025, according to our calculations.

What are the top 5 stocks to buy right now?

There's no single "top 5," as recommendations vary by analyst, but strong current picks often include tech giants like Alphabet (GOOG/GOOGL), established players like RTX Corp (RTX), diverse growth in MercadoLibre (MELI), and industrial/medical innovators like Zimmer Biomet (ZBH) or Comfort Systems (CSUSA), alongside semiconductors (e.g., Micron Technology) or specialized firms like Ciena (CIEN), with focus on growth, value, or trends like AI/automation. Always research individual stocks and consider your risk tolerance.