- I have Always kept Walmart on my radar, never purchased...
1. Should I Add to my Costco holdings or Add Walmart as well to my Portfolio...
2. Your thoughts on Valuations at current for both
Thanks in Advance,
M
COST is trading at 44.5x Forward P/E with around 7% topline growth over the next few years,The valuation is stretched here. We like COST, but would not be too aggressive adding here but rather average into the position over time.
WMT is trading at a cheaper valuation of 25.8x Forward P/E, but growth is mature and expected to be around 4%. Both are high-quality businesses, but we would be more comfortable holding COST for the long term. We think other consumer staples that trade at more reasonable valuation may be more interesting today, such as MRU, AMZN (some tech exposure and consumer staple).
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in AMZN, COST, WMT.