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Despite rising inflation, supply chain disruptions, and a slowdown in third-quarter GDP growth, U.S. retail sales rose 0.9% year-over-year in August, 0.7% in September, and 0.9% in October. Furthermore, declining jobless claims each week, rising consumer spending, and the lifting of travel bans should continue to help retailers generate solid sales. The National Retail Federation (NRF) forecasts holiday retail sales to rise between 8.5% -10.5% during November and December. The global retail market is expected to grow at a 7.7% CAGR to $29.45 trillion in 2025. So, both TGT and BBBY should benefit.
But while BBBY’s shares have declined 15% in price over the past six months, TGT has surged 18.8%. TGT is a clear winner with 64.7% gains versus BBBY’s 15.8% returns in terms of their past year’s performance. But which of these stocks is a better pick now? Let’s find out.
