Core Viewpoint - Walmart, Amazon, and Costco are identified as resilient retailers capable of thriving during economic downturns, contrasting with many retailers that struggle due to macroeconomic and competitive challenges [1][2] Walmart - Walmart operates over 10,600 stores and e-commerce platforms across 19 countries, maintaining a diverse presence [3] - The company adapted to e-commerce competition by renovating stores, enhancing customer relationships, and expanding digital platforms, while matching Amazon's prices [4] - From fiscal 2014 to 2024, Walmart achieved a steady revenue CAGR of 3%, with projected revenue and EPS CAGRs of 5% and 11% from 2024 to 2027, respectively [5] - Despite a forward earnings multiple of 37, Walmart's scale and strategic initiatives justify its valuation as a long-term investment [6] Amazon - Amazon, the leading e-commerce company with over 200 million Prime members, has significantly impacted the retail landscape, driving many competitors out of business [7] - The company's profitability primarily stems from Amazon Web Services (AWS), allowing it to operate retail at thin margins [8] - AWS, the largest cloud platform, supports Amazon's retail expansion through subsidization, enhancing its competitive edge [9] - From 2014 to 2024, Amazon's revenue grew at a CAGR of 22%, with expected revenue and EPS CAGRs of 10% and 17% from 2024 to 2026, respectively [10] Costco - Costco competes effectively against Amazon and Walmart by offering membership plans that provide discounts on bulk purchases, supported by higher-margin membership fees [11] - The company expanded from 663 to 891 warehouses and increased its cardholders from 76,000 to 136,800, achieving a global renewal rate rise from 87% to 90.5% from fiscal 2014 to 2024, with a total revenue CAGR of 8% [12] - Analysts project Costco's revenue and EPS to grow at CAGRs of 7% and 10% from 2024 to 2027, respectively, despite a forward earnings multiple of 52 [13]
3 Evergreen Retail Stocks to Buy Like There's No Tomorrow