Target vs. Walmart: Which Retail Stock Is the Better Buy After Earnings?

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• Walmart looks like the better stock to buy today despite trading at a premium valuation of ~42x earnings, owing to broader growth, profit tailwinds from higher-margin businesses, and the Sam's Club recurring-revenue engine.

  60% confidence

• The Motley Fool Stock Advisor analyst team identified 10 best stocks for investors to buy now, and Walmart was not among them.

  60% confidence

• Investing in low prices is the single best return Walmart can get on its capital right now, a strategy that keeps pulling in market share.

  60% confidence

• Target is the clear bargain, trading at about 17 times earnings with a 3.6% dividend yield, but one good quarter doesn't undo a year of struggles.

  60% confidence

• Target's business is based on a more discretionary product lineup that will likely suffer more than Walmart's during challenging economic times.

  60% confidence

• Walmart's global e-commerce is showing improved economics as it scales alongside its advertising and membership businesses.

  60% confidence

• Walmart's fuel costs were approximately $175 million in Q1 2026, weighing down operating income growth.

  60% confidence

• Motley Fool Stock Advisor's total average return is 986%, outperforming the S&P 500's 208% return.

  60% confidence

• Target management is keeping a cautious outlook given the work ahead and ongoing macroeconomic uncertainty.

  60% confidence

Data points we hold from this source