Ask a Fool: Is Brick-and-Mortar Retail Doomed?
Through the first three quarters of 2017, there have been 22 major retail bankruptcies, including high-profile names like hhgregg, Toys R Us, and True Religion. However, all but a select few have two common characteristics: They sell discretionary goods (things people want, not that they need) and aren't discount-oriented businesses. Retailers who sell full-price discretionary goods don't have the brightest future right now, and it's tough to justify investing in almost any company in this category.
On the other hand, discount-oriented retailers and those who sell non-discretionary products are doing quite well as a group. The e-commerce boom has made discounted products commonplace, so consumers don't want to pay full retail anymore, but they do appear to be eager to shop in-person for bargains.
Wal-Mart Stores (NYSE: WMT) is the best example of a company benefitting from this trend. The retail titan's stock is actually up 40% in 2017 on strong sales figures and increased guidance. Five Below (NASDAQ: FIVE) is another discount retailer that's been absolutely crushing it lately, appealing to bargain-hungry shoppers.
Source: Fool.com
Walmart Inc. Stock
With 49 Buy predictions and not a single Sell prediction Walmart Inc. is an absolute favorite of our community.
Based on the current price of 55.37 € the target price of 165 € shows a potential of 198.0% for Walmart Inc. which would more than double the current price.
