Goldman Sachs lists Walmart as a "strong buy"

It is learned that according to foreign media reports, Goldman Sachs recently announced that it will add Walmart to its "strong buy" list, pointing out that its profitability has improved and its share of the US grocery market has also increased.

Meanwhile, analysts removed Target from the list, with Goldman Sachs remaining bullish on the stock but forecasting slower growth next year.

Goldman Sachs pointed out that Walmart's heavy investment in e-commerce and its strength in the grocery sector are two reasons to be bullish on Walmart. Strengthening its e-commerce business and grocery store physical stores is a two-pronged move that is important to Walmart's future.

Todd Gordon, founder of Inside Edge Capital Management, is more cautious, saying at least until Walmart's technical setup improves, Walmart has underperformed Target and the broader market overall in 2021. Target is up 64% since August, while Walmart is up just 9% and the broader market is up 30%.

Gordon added that Walmart's fundamentals look solid and that investments in e-commerce may be ready to bear fruit. He said it is less risky for investors to take partial positions when fundamentals are strong and add to positions once technicals strengthen.

Editor ✎ Xiao Zhu/

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