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This Is the best Retail Store to Buy now

By Jose Najarro - Mar 27, 2021 at 7:52AM

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Is Walmart, Costco or Home Depot a better buy?

In today's video, I try to find the best-valued retail store stock. The three stocks I'll compare will be Walmart (WMT 1.97%), Costco (COST 1.24%) and Home Depot (HD 1.87%)

Here's a quick overview of what I'll cover in the video:

  • Stock Performance YTD: The Winner is Home Depot with 12.6% returns.
  • Future Growth: The Winner is Costco, with analysts expecting higher revenue growth.
  • Dividend Yield: The winner is Home Depot with yields of 2.22%. Balance Sheet: The winner is Costco, the only one of the three with higher cash than debt.
  • Profit Margins: The winner is Home Depot, with profit margins of 9.74%
  • P/S Ratio: The cheapest using this valuation is WMT, but it is also the one with the lowest profit margins.
  • P/E Ratio: The best value here, to my surprise, was Home Depot. Even though Home Depot had the strongest performance YTD, dividend yield, and profit margins, it still manages to be the cheapest.

All metrics are based on 3/25/21 closing prices. Each stock had its pros and cons, but I believe the best value for a buck would be Home Depot.

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Stocks Mentioned

Wal-Mart Stores, Inc. Stock Quote
Wal-Mart Stores, Inc.
WMT
$128.48 (1.97%) $2.48
The Home Depot, Inc. Stock Quote
The Home Depot, Inc.
HD
$308.46 (1.87%) $5.65
Costco Wholesale Corporation Stock Quote
Costco Wholesale Corporation
COST
$470.76 (1.24%) $5.77

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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