This week Investing with Charles, Research analyst Matt Clark and I discuss two retail giants. Walmart Inc. (NYSE: WMT). When Amazon.com Inc. (Nasdaq: AMZN)...
I hit Wal-Mart yesterday.check it out here..
Both stocks are strong.
But one is more robust and I think it’s better to buy this holiday season.
I came across Wal-Mart yesterday, so let’s see how Amazon stacks up.
Amazon is more than retail
mat: Amazon is actually beating other companies in the same industry, beating general merchandise retailers. It has risen almost 19% in the last 12 months and is trading twice the 50-day simple moving average.
AMZN defeats its companions
So why is Amazon here when 2020 was pretty decent?
Charles: If there is a company in the world that can compete with Amazon, it would be Wal-Mart. But Amazon is still the king here.
Remember that Amazon is more than just retail. The boxes that appear at our doorstep are retailers, but Amazon is also a leader in cloud computing.
There are other players in the game like Microsoft, Google, IBM … but Amazon is leading that responsibility.
It is also becoming a logistics company. Wal-Mart is also a logistics company, but Amazon is building a global fleet here.
It’s a different kind of company than a retail business. And that shows up in that assessment. Amazon has a sales ratio of over 4, and its rating is similar to high-tech stocks like Microsoft and Google. That is the difference here. Amazon is more than just a retailer. It’s a retailer and a tech stock.
mat: Amazon uses the Amazon Web Services (AWS) platform to generate a large amount of sales. It strengthened inventory during 2020.
AMZN Green Zone Evaluation
Amazon, in 43, In fact, is a lower rate than Wal-Mart in the Green Zone Rating System.
Obviously, Amazon is tired of size with a market capitalization of $ 2 trillion. Its momentum is also appreciated.
Amazon is quality When growth, This is a common theme for tech stocks.It is also ranked green VolatilityDespite some ups and downs in stock prices.
Charles: Amazon is really enthusiastic worth so 12.. I lose my shirt there. The good news is that if you lose your shirt, you can use your own platform to deliver a new shirt on the same day.
Amazon is an unimaginably cheap stock. Currently, the stock price is around $ 3,500. But you are buying growth, dominance, and a position in the world’s leading markets here. It is very rare to find a company of this quality that is not traded at premium. Therefore, you can expect the low score seen in the values here.
Walmart vs Amazon: Better Stocks to Buy?
mat: Comparing apples to apples here … The retail index has risen almost 26% so far, and AMZN has risen 12.8% in the same time frame.
Take all three of AMZN, WMT and BMI and put them together in one graph, Wal-Mart under Approximately 4% — while Amazon is up almost 19%. BMI retail index is up almost 33%.
Wal-Mart was an integral business and remained open during the pandemic. It has essentials, and it really made that bone that way.
Amazon was able to take advantage of online buying trends, but also leaned towards the AWS platform and its logistics foundation. Amazon continues to rise and still shows a positive trend.
From 2018 to 2021, Amazon started with multiple price-earnings ratios (close to 200). Since then, there has been a decline. I’m about 64 years old now.
Wal-Mart, on the other hand, is relatively flat and begins to rise as stock prices fall. As of today, Wal-Mart’s price-earnings ratio is around 52.
The P / E gap has narrowed significantly. It tells me that these companies are much closer to valuing stock prices.
Charles: Previously, Amazon was more expensive than everything. And that’s not the case today. Yes, it’s an expensive stock, but we’re in an expensive market. Therefore, Amazon is an expensive stock in an expensive market overall.
This is my conclusion: I like both Amazon and Walmart as stock picks. Both can be put in a drawer and forgotten for 20 years.
That said, if I’m choosing only one, it’s Amazon.
Where to find us
The mat that will appear this week is Bull & Bear It’s a podcast, so stay tuned.
Don’t forget to check us Ask Adam anything A video series where Chief Investment Strategist Adam O’Dell answers your questions.
You can also catch the mat every week The latest information on the marijuana market.. If you’re interested in cannabis investment, you don’t want to miss Matt’s weekly insights.
Remember, you can email me with my team Feedback @ moneyandmarkets.com — Or leave a comment on YouTube. We love to hear from you!May feature your questions and comments in future editions of Investing with Charles..
For safe benefit
Charles Size More
Co-editor, Green Zone Fortune
Charles Size More Is a co-editor of Green Zone Fortune Specializes in income and retirement topics. He is also a frequent guest on CNBC, Bloomberg and Fox Business.
Amazon vs. Walmart (Part 2): Best Stock to Buy Now Source link Amazon vs. Walmart (Part 2): Best Stock to Buy Now