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  1. #1
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    TGT vs HD LOW and WMT

    Target reported some bad earnings and everyone seems puzzled. I am not sure why. LOW and HD are supplying for home improvement and builders. There is still a huge backlog of homes being built. They did not stop mid construction when rates rose so it may take 6 months or so for the backlog will be finished and then we may see some weakness in these stocks. WMT has a much larger portion of their business allocated to groceries which are non-discretionary. No surprise that they outperformed TGT. TGT is very consumer discretionary. They sell less groceries than Walmart and rely more on apparel, and home furnishings and home goods etc. I'm not sure why everyone on TV is confused by this. Am I missing something?

  2. Member
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    #2
    It's not puzzling to me ... they're rich with inventory AND the due invoices.
    Fortunately, deals will abound for the holidays. Unfortunately, TGT stock ...

  3. Member
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    #3
    Quote Originally Posted by TampaJim View Post
    It's not puzzling to me ... they're rich with inventory AND the due invoices.
    Fortunately, deals will abound for the holidays. Unfortunately, TGT stock ...
    I think HD and LOW will fall next year. They had great earnings reports and so did WMT. Having the grocery business probably save WMT. We will probably see a recession next year so they all will likely fall.

  4. Member
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    #4
    It was the $400 million loss so far this year of "organized retail crime" that did them in.

    Good luck!
    It's not what you can take with you,

    It's what you leave behind.

  5. Member
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    #5
    I sold my WMT at 140 the other day so it was a given that it would pop. If anybody wants to donate to me for selling causing it to go up PM and we can work it out.

  6. idbefishing
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    #6
    Quote Originally Posted by NitroZ7 View Post
    Target reported some bad earnings and everyone seems puzzled. I am not sure why. LOW and HD are supplying for home improvement and builders. There is still a huge backlog of homes being built. They did not stop mid construction when rates rose so it may take 6 months or so for the backlog will be finished and then we may see some weakness in these stocks. WMT has a much larger portion of their business allocated to groceries which are non-discretionary. No surprise that they outperformed TGT. TGT is very consumer discretionary. They sell less groceries than Walmart and rely more on apparel, and home furnishings and home goods etc. I'm not sure why everyone on TV is confused by this. Am I missing something?
    What do you think about COST? I'd imagine their numbers would be pretty good also.

    These ER reports are very confusing to me, always have. So much that I quit trying to make sense of it. What all do investors look at to gauge future earning?
    Last edited by idbefishing; 11-17-2022 at 07:39 AM.

  7. Member
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    #7
    Quote Originally Posted by idbefishing View Post
    What do you think about COST? I'd imagine their numbers would be pretty good also.
    I know what I see with my own two eyes and mid day yesterday our Costco was as busy as ever with everyone spending $100s of dollars. Each store has to bring in some serious money every Saturday! But seriously, those stores are packed every minute they are open.

  8. Member
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    #8
    Costco pays a good dividend. I'm in under 100, so it's all bonus bucks.
    But I'm not buying more since it's likely to only gain in small steps now.
    Cash isn't a bad place currently, IMO. Betting the spring is gonna suck.

  9. idbefishing
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    #9
    Dang Jim, under 100? would you adopt me? Pappa?

  10. Member
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    #10
    Quote Originally Posted by idbefishing View Post
    Dang Jim, under 100? would you adopt me? Pappa?
    Didn't buy quite enough. Apple was purchased inexpensively too. Along with nearly every petroleum company.
    Of course, I'm enamored with Costco's business model ... wages & benefits, generic standards and values.
    Apple is a personal use statement and petrochemical was my career field. Just picked stuff that matched up.
    But at this point in the pandemic, you'll probably be better off following my real estate picks vs stock portfolio.

    Oh yeah ... if you want to toss coins at my feet, be sure to bring a few extra. I grew up eating Krispy Kreme.