Key Takeaways COST delivered 7.1% year-over-year total comparable sales growth for the four weeks ending Feb. 1, 2026.COST saw digitally enabled comparable sales surge 34.4% in January, following strong gains in December.COST reported January net sales up 9.3% to $21.33B, extending the sales momentum seen in December.Costco Wholesale Corporation (COST) kicked off calendar year 2026 on a solid note, delivering stellar comparable sales growth in January, which highlights its appeal to value-conscious consumer ...

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]

Core Insights - Walmart has transformed from a small discount retailer into a retail giant, demonstrating the importance of long-term investment strategies [2][10] - The company has successfully adapted to changing market conditions, including the addition of groceries, automation, and e-commerce [5][10] Company Performance - Walmart's stock debuted at $15 per share in 1970 and closed its first trading day at $16.50 [2] - The stock has experienced significant volatility, losing over 30% of its value multiple times, but has rewarded long-term shareholders [6][9] - As of the latest fiscal quarter (Q3 2026), Walmart reported net sales of $177 billion, a 5.8% increase, with adjusted earnings per share (EPS) rising 7% to $0.62 [8] - Global e-commerce sales increased by 27%, while U.S. comparable sales rose by 4.8%, driven by a 1.8% increase in transactions and a 2.7% rise in average ticket size [8] Historical Context - Early investors in Walmart have seen substantial returns, with a single share purchased at $16.50 worth approximately $786,432 today [9] - Walmart's ability to navigate the retail landscape contrasts with other discount retailers like K-Mart and Sears, which failed to adapt and ultimately went bankrupt [4][10]

Company Overview - George Weston Limited is a Canadian public company founded in 1882 [2] - The company operates through two reportable segments: Loblaw Companies Limited and Choice Properties Real Estate Investment Trust [2] Loblaw Companies Limited - Loblaw provides a wide range of products and services including grocery, pharmacy, health and beauty, apparel, general merchandise, financial services, and wireless mobile products [2] Choice Properties Real Estate Investment Trust - Choice Properties owns, operates, and develops high-quality commercial and residential properties across Canada [2] Upcoming Financial Results - George Weston Limited will release its 2025 fourth quarter and full year results on March 4, 2026, at approximately 7:00 AM (ET) [1]

Core Insights - Walmart Inc. is recognized as a strong long-term investment with low volatility, with UBS raising its price target to $135 from $122 while maintaining a Buy rating [1] Group 1: Investment and Financial Performance - UBS has increased Walmart's price target to $135 from $122, indicating confidence in the stock's performance [1] Group 2: Health & Wellness Expansion - Walmart is investing in its Health & Wellness sector by elevating 3,000 roles to pharmacy operations team lead positions, with an average pay of $28 per hour and potential earnings up to $42 per hour [2] - Pharmacy technicians at Walmart earn an average of $22 per hour, with pay ranges increasing up to $40.50 per hour [2] - The company aims to strengthen local pharmacy teams and expand staffing across its 4,600 locations, enhancing digital offerings like pharmacy delivery and access to Eli Lilly's LillyDirect program [3] Group 3: Competitive Landscape - Walmart's expansion in the pharmacy market comes as Amazon increases its same-day prescription delivery services and offers new weight-loss medications through insurance plans [4] Group 4: Company Overview - Walmart operates as an omnichannel retailer, providing a wide range of products including food, beverages, general merchandise, and electronics through various retail and e-commerce platforms [5]

Core Insights - Walmart Inc. and Target Corporation are major players in U.S. big-box retail, each utilizing extensive store networks and omnichannel strategies to attract diverse consumer spending [1] - Walmart, with a market cap of approximately $929.4 billion, relies on its everyday low-price model and diversified revenue streams, while Target, valued at around $46.2 billion, focuses on design-led products and private-label offerings [2] Group 1: Walmart's Positioning - Walmart's business model emphasizes consistent execution and investment, appealing to value-conscious consumers amid selective discretionary spending [4] - E-commerce is a significant growth driver for Walmart, with enhancements in delivery options and the integration of AI tools to improve customer engagement and operational efficiency [5][6] - The company is focusing on higher-margin businesses, such as Walmart Connect and membership programs, to stabilize revenues and offset challenges like rising labor costs [6][7] Group 2: Target's Transformation - Target is undergoing a multi-year transformation aimed at enhancing its product offerings and shopping experience, with a focus on digital engagement and convenience services [8][10] - The retailer is investing in technology and analytics to improve demand forecasting and inventory management, although it faces challenges in recovering demand due to macroeconomic pressures [11][12] - Despite operational improvements, Target anticipates low-single-digit declines in sales and comparable sales for the upcoming fiscal quarter, indicating a cautious outlook [12] Group 3: Financial Performance and Estimates - The Zacks Consensus Estimate for Walmart indicates year-over-year growth of 4.5% in sales and 4.8% in EPS for the current fiscal year, with positive revisions for the next fiscal year [13] - In contrast, Target's estimates suggest declines of 1.6% in sales and 17.6% in EPS for the current fiscal year, but a potential recovery with increases of 2.3% and 5.9% in the next fiscal year [16] - Over the past year, Walmart's stock has increased by 17.9%, while Target's has decreased by 27.6%, highlighting a significant divergence in performance [18] Group 4: Valuation and Investment Outlook - Walmart's forward P/E ratio of 39.46 reflects a premium valuation due to its scale and defensive profile, while Target's forward P/E of 13.17 suggests modest expectations amid ongoing concerns [20] - Currently, Walmart is viewed as a more favorable investment due to its resilient positioning and diversified growth strategies, while Target is still navigating a recovery phase [21]

Core Insights - Walmart Inc. has a market capitalization of $932 billion and operates through three segments: Walmart U.S., Walmart International, and Sam's Club, offering a wide range of products and services globally [1] Performance Overview - Over the past 52 weeks, Walmart's stock has increased by 20.1%, outperforming the S&P 500 Index, which gained 16.1% [2] - Year-to-date, Walmart shares are up nearly 5%, compared to a 1.9% rise in the S&P 500 [2] Competitive Position - Walmart's stock has outperformed the State Street Consumer Staples Select Sector SPDR ETF, which returned 3.9% over the past 52 weeks [3] Financial Results - In Q3 2026, Walmart reported a revenue increase of 5.8% to $179.5 billion and an adjusted EPS rise of 6.9% to $0.62, driven by strong e-commerce performance with global online sales up 27% and advertising revenue up 53% [4] - U.S. comparable sales grew by 4.5%, while international sales increased by 10.8% [4] Future Guidance - Walmart raised its fiscal 2026 guidance, expecting net sales growth of 4.8% to 5.1% and adjusted EPS between $2.58 and $2.63 [5] - Analysts project a 4.8% year-over-year growth in adjusted EPS to $2.63 for the fiscal year ending January 2026 [5] Analyst Sentiment - The consensus rating among 38 analysts is a "Strong Buy," with 29 "Strong Buy" ratings, six "Moderate Buys," two "Holds," and one "Strong Sell" [6] - The bullish sentiment has slightly decreased from three months ago when there were 31 "Strong Buys" [7] - Tigress Financial raised Walmart's price target to $135 while maintaining a "Buy" rating [7]

Core Insights - Amazon is attempting to expand its e-commerce dominance into physical retail, particularly in the grocery sector, which is nearing a $1 trillion market size [2][3] - Currently, Amazon holds a mere 3% share of the grocery market, despite generating over $100 billion in grocery sales in 2024 [3][4] - The company plans to open a 230,000-square-foot mega-store outside Chicago in 2027, significantly larger than a typical Walmart supercenter [4][5] Market Position - Amazon's grocery market share is 1.6% for both Amazon and Whole Foods, while Walmart commands a 21% share with 4,600 U.S. stores [3] - Amazon's North America segment sales for the first three quarters of the fiscal year reached $299.3 billion, compared to Walmart U.S. at $353.8 billion [15] Store Development - The new store in Orland Park Village will include 800 parking spots and create 500 jobs, with zoning approval obtained in about two weeks [6][7] - The store will feature a mix of groceries, household essentials, and general merchandise, designed for customers to make one-stop shopping trips [10][11] Operational Strategy - The store will incorporate a design that allows for browsing and fulfilling same-day grocery orders, with options for in-store kiosks and delivery to customers' cars [11][12] - Amazon's previous attempts at physical retail have included various concepts, but many have not succeeded, indicating a need for a successful model in brick-and-mortar retail [16][18] Competitive Landscape - Amazon holds a dominant 40% share of e-commerce sales among the top 2,000 online retailers, while Walmart trails at 11% [14] - The success of the new mega-store will depend on attracting customers from competitors like Walmart and Costco [20]

Core Viewpoint - Investors with significant capital have adopted a bearish stance on Costco Wholesale, indicating potential market movements or insider knowledge regarding upcoming events [1][2]. Options Trading Activity - The sentiment among large-money traders is predominantly bearish, with 63% of positions being bearish and only 36% bullish. Notably, there were 11 options trades identified, including 1 put option worth $37,000 and 10 call options totaling $643,669 [3][2]. - The major market movers are focusing on a price range between $740.0 and $1060.0 for Costco Wholesale over the past three months, suggesting a strategic interest in this price band [4]. Volume and Open Interest - The mean open interest for Costco Wholesale options trades is 346.2, with a total trading volume of 156.00, indicating a moderate level of activity in the options market [5]. Largest Options Trades - Significant options trades include a bearish call sweep with a total trade price of $162.6K and various bullish trades with total prices ranging from $61.2K to $112.0K, reflecting mixed sentiments among traders [9]. Company Overview - Costco Wholesale operates approximately 910 warehouses globally, serving over 80 million members. The company generates about 73% of its revenue from the US, with grocery offerings accounting for 55% of fiscal 2025 revenue [10]. - Analysts have issued ratings for Costco Wholesale, with a consensus target price of $1066.67, reflecting a generally positive outlook despite current bearish options activity [11]. Current Stock Performance - The stock price of COST is currently at $977.35, showing a slight increase of 0.12%. Analysts maintain optimistic ratings, with target prices of $1000 and $1100 from different firms [13].

Discount retailer, Dollar General Corp. (NYSE:DG) , is set to pay shoppers across its 20,000 nationwide outlets, as part of its “deceptive” pricing class action settlement.$15 Million Settlement For ‘Deceptive’ PricingAccording to court filings, the company has agreed to a $15 million settlement resolving nationwide claims that shoppers were charged prices at checkout that did not match advertised shelf prices, even as the company itself did not admit to any wrongdoing.Under the agreement, consumers who pur ...