Core Viewpoint - Consumers are facing economic challenges, impacting retail sales, but TJX Companies and Walmart have performed well, raising the question of which stock is a better long-term investment [1] TJX Companies - TJX operates brands like TJ Maxx, Marshalls, and HomeGoods, offering products at prices 20% to 60% lower than full-price retailers [3] - The company sources excess inventory from manufacturers at favorable prices, allowing it to offer lower prices to customers, especially during economic downturns [4] - TJX's fiscal third-quarter same-store sales grew by 5%, with positive performance across all divisions for the period ending November 1 [5] Walmart - Walmart has been successful since its inception, focusing on cost control to provide everyday low prices, making it difficult for customers to find lower prices elsewhere [6] - The company operates three segments: Walmart U.S., Walmart International, and Sam's Club, with Walmart U.S. generating the majority of revenue [7] - In the fiscal third quarter, Walmart U.S. same-store sales increased by 4.5%, driven by higher traffic contributing 1.8 percentage points [7] Investment Performance - Walmart shares returned 183% over the last five years, outperforming the S&P 500's 96.2% return [8] - Walmart's current P/E ratio is 44, significantly higher than its 10-year median of 29 and the S&P 500's 30 [9] - TJX has delivered a 145.7% return over the past 10 years, nearly 50 percentage points above the S&P 500, with a P/E ratio of 34, slightly above its 10-year median of 24 [10]

Mid-cap dividend stocks haven't even attracted the same crowded trade. Many institutional investors focus on large caps for liquidity reasons, which leaves mid-caps relatively underowned. This creates opportunities for individual investors who are willing to look beyond the Coca-Colas of the world. A mid-cap industrial company growing earnings at 12% annually with a 2.5% yield and room to expand its payout ratio offers a fundamentally different return profile than a mega-cap consumer staple growing earnings ...

Core Insights - Target's new CEO, Michael Fiddelke, aims to enhance merchandise quality, in-store experiences, and technology to improve overall customer satisfaction [1][4] - Fiddelke took over as CEO on February 1, following a year where Target's shares fell by 28%, contrasting with a 16% rise in the S&P 500 Index [2] - The company plans to invest in creating a distinctive assortment of merchandise, improving online product visibility, and catering to busy families [3] Strategic Priorities - The four main priorities outlined by the CEO include: 1. Merchandising that combines design, style, and value uniquely [4] 2. Enhancing guest experience for both in-store visits and digital interactions [4] 3. Leveraging technology to streamline operations and improve customer experiences [4] 4. Investing in team members to develop future-ready skills [4] Leadership Transition - Fiddelke has been with Target for 20 years and previously served as the Chief Operating Officer [5] - The board's lead independent director expressed confidence in Fiddelke's ability to drive growth and refocus the company's strategy [6] - During an earnings call, Fiddelke emphasized the importance of investing in digital operations and utilizing AI to enhance team efficiency [7]

Industry Overview - Global retail e-commerce sales are projected to reach approximately $6 trillion in 2024 and are expected to increase to nearly $8 trillion by 2028, representing a 31% growth over the next few years [1] - Online shopping is anticipated to account for over 23% of all retail purchases by 2025, with this share expected to continue rising throughout the decade [1] Company Performance - Walmart has achieved a significant milestone by surpassing a $1 trillion market capitalization, joining a select group of companies primarily composed of Big Tech firms [2] - Walmart's e-commerce sales have seen a robust growth of over 27%, contributing to its overall sales strength, while its extensive store network supports efficient fulfillment and reliable delivery [3] - Over the past 52 weeks, Walmart's stock has increased by approximately 28%, with a year-to-date rise of 15% [5] Financial Metrics - In fiscal Q3, Walmart reported revenue of $179.5 billion, reflecting a year-over-year increase of 5.8% [9] - Global e-commerce sales grew by 27%, driven by store-fulfilled pickup and delivery services, as well as marketplace gains [9] - The global advertising business surged by 53%, with Walmart Connect in the U.S. increasing by 33% [9] - Membership and other income rose by 9%, including a notable 16.7% growth in membership income [9] Valuation Insights - Walmart's forward price-to-earnings (P/E) ratio stands at approximately 42x, significantly higher than the sector average of around 16x, indicating that investors are willing to pay a premium for consistent earnings growth [8]

Core Viewpoint - The service sector of the economy showed signs of growth in January, indicating a positive start to the year despite challenges from high tariffs and the integration of artificial intelligence [1] Group 1: Economic Growth - The largest part of the economy, the service sector, expanded again in January, suggesting decent growth early in the new year [1] - The survey of service companies, including banks, retailers, and restaurants, remained unchanged at 53.8% in January, indicating stability in the sector [1]

Core Insights - Walmart has become the first retailer to exceed a $1 trillion market capitalization, with its stock price increasing by 468% over the past decade, driven by attracting higher-income consumers while retaining its traditional customer base [1][2] Group 1: Market Performance - The company's stock has risen significantly due to its ability to offer convenience and lower prices, appealing to a broader consumer base [1] - Walmart's market valuation was achieved shortly after it transitioned its stock listing from the New York Stock Exchange to Nasdaq [2] Group 2: Business Expansion - Over the last five years, Walmart has expanded its online marketplace to over 500 million items and introduced one-hour delivery in select locations [2] - The launch of Walmart+, a subscription service, positions the company competitively against Amazon [2] - Walmart has developed a $4 billion advertising business, which has positively impacted profit margins [2] Group 3: Strategic Initiatives - The new global CEO, John Furner, is tasked with increasing technology investments in a retail environment influenced by AI while competing with Amazon [3] - Walmart has formed partnerships with OpenAI and Google to integrate shopping tools into search-based chatbots [3] Group 4: Company History - Walmart started with a single store in Rogers in 1962 and now operates approximately 4,600 outlets across the US [4] - The company's shares initially traded over the counter in 1970 at $16.50 before moving to the New York Stock Exchange two years later [4]

Core Insights - Walmart has achieved a market valuation of $1 trillion, becoming the first retailer to reach this milestone, with its shares rising nearly 26% over the past year, placing it alongside major tech companies like Nvidia and Alphabet [1] Company Performance - Over the past decade, Walmart's stock has surged 468%, significantly outperforming the S&P 500's 264% gain, attributed to its dual strategy of appealing to both higher-income and lower-income customers [2] - In the last five years, Walmart has expanded its online marketplace to over 500 million items, introduced one-hour delivery, launched Walmart+ to compete with Amazon Prime, and developed a $4 billion advertising business that has improved margins [2] Technological Investments - Walmart has made significant investments in AI, focusing on supply-chain automation to enhance the freshness of produce, speed up deliveries, and improve inventory forecasting, which has contributed to beating US same-store sales estimates for 15 consecutive quarters [3] - The retailer's early and aggressive AI investments have generated investor optimism, particularly as grocery shopping increasingly shifts online [3] Market Position - Walmart captures $1 out of every $4 spent on groceries in the US, positioning itself favorably amid economic challenges faced by low and middle-income households due to inflation and a cooling job market [4] - The company has been recognized as a significant player in the tech sector, being added to the Nasdaq-100 Index, which includes the most valuable non-financial companies [8] Future Outlook - John Furner, the new global CEO, faces the challenge of accelerating technology investments in an AI-driven market while competing against rivals like Amazon, Aldi, and Costco [6] - Analysts predict Walmart could approach a $2 trillion market capitalization in the coming years, driven by its strong performance in food retailing and ongoing technological advancements [11]

Market Overview - Stocks opened higher but experienced a significant plunge, ultimately closing down with the S&P 500 down about 0.9% and the Nasdaq down about 1.4% [6][7] - The Dow Jones Industrial Average also closed down about 0.4% while the Russell 2000 managed to close positive, up 0.3% [7] Sector Performance - The information technology sector was the biggest underperformer, down more than 2%, despite strong performance from companies like Palantir [8] - The energy sector saw a rise of more than 3% due to an increase in crude prices [9] Company Highlights - Palantir was a notable gainer, finishing the day up about 6.8% after a revenue forecast for fiscal 2026 that exceeded Wall Street expectations, projecting a 61% annual revenue increase [10] - Amgen reported a fourth-quarter adjusted EPS of $5.29, beating estimates of $4.71, indicating strong performance from its top drugs [12] - Walmart's stock closed up about 3%, marking a 14% increase year-to-date, attributed to its digital transformation and technology integration [14][15] Homebuilders - Homebuilders' stocks rose nearly 6% in the session, with the homebuilding index up about 2.5%, as they seek to develop affordable housing solutions [16] Notable Decliners - PayPal shares fell more than 20% following the announcement of a new CEO after a failed turnaround plan [17] - Novo Nordisk shares dropped over 14% after the company projected a sales decline of 5% to 13%, exceeding analyst expectations of a 1.4% decline [19] Earnings Reports - Silicon Labs stock surged about 39% in aftermarket trading due to reports of advanced talks with Texas Instruments [21] - Chubb's fourth-quarter net premiums came in at $13.13 billion, slightly above street estimates, while its combined ratio was 81.2%, below the expected 84% [27][28]

-- Walmart Made it Into the Exclusive $1 Trillion Club. Here Are the Other Members [Major Indexes Slide as Tech Stocks Tumble][Palantir Stock Soars on Strong Earnings, Outlook][Data Blackout Returns As Shutdown Delays Jobs Report][Where Are Gold and Silver Prices Headed Next?]- Top StoriesWalmart's stock has been lifted by its addition to the Nasdaq 100 index.Michael Nagle / Bloomberg via Getty ImagesClose### Key Takeaways- The move comes as the shares have posted double-digit gains in 2026.- Walmart's valu ...

Core Insights - Walmart has achieved a market valuation of $1 trillion, becoming the first retailer to reach this milestone, reflecting its transformation into a technology-driven commerce giant [1][10] Group 1: Financial Performance - Over the past decade, Walmart's stock has surged 468%, significantly outperforming the S&P 500's 264% gain, showcasing the effectiveness of its dual-customer strategy targeting both high- and low-income shoppers [2] - Walmart has consistently beaten U.S. same-store sales estimates for 15 consecutive quarters, indicating strong operational performance [5] Group 2: Digital Transformation - Walmart has expanded its digital marketplace to over half a billion items and introduced one-hour delivery and Walmart+ to compete with Amazon Prime, marking a significant digital business transformation [3][4] - The company has invested billions in artificial intelligence for supply-chain automation, improving inventory forecasting and enhancing delivery speed, which has contributed to its operational edge [4][6] Group 3: Competitive Landscape - Walmart is intensifying its competition with Amazon by integrating AI into its shopping tools and has partnered with OpenAI and Google for this purpose [6] - The retail environment remains challenging due to inflation and economic pressures on U.S. households, particularly affecting low- and middle-income earners [9] Group 4: Leadership and Strategy - The milestone of reaching a $1 trillion valuation coincides with John Furner taking over as Walmart's global CEO, emphasizing a continued focus on technology investments [8]