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What Walmart And Home Depot Said About The Economy
Nearly two years on from the last round of stimulus checks, the US consumer has held up better than
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The difference in WMT and HD reaction, I think, is because WMT is a consumer staple name, has some demand tailwinds (in food/consumables and trade-down) and persistent food price inflation is positive; this partially offsets weakness in other categories. HD is a consumer discretionary name, has all demand headwinds (both pro and DIY) and disinflation in many categories is a negative; there is little positive offset. Plus WMT looks fairly valued vs HD about 25% overvalued, to me.