Buy Walmart, Target as online sales growth starts to outpace Amazon’s, Bank of America says

  • Bank of American Merrill Lynch says Target and Walmart online sales are outpacing those at Amazon and urges clients to buy the stocks.
  • Analyst Robert Ohmes says Walmart saw its U.S.-owned e-commerce growth accelerate to 43 percent in the third quarter, while Target jumped 49 percent year-over-year.
  • Ohmes adds that the snowballing growth has been supported by the rapid expansion of buy-online, pick-up in store options.

Online sales growth at Target and Walmart is starting to snowball as the holiday season enters full swing, with new data showing the retail giants growing digital sales faster than rival Amazon.

Walmart’s U.S.-owned e-commerce growth accelerated to 43 percent in the third quarter, while Target posted a record 49 percent year-over-year surge, according to Bank of America Merrill Lynch. Given the robust gains, analysts at the brokerage wrote to clients Thursday that investors should buy either stock as shoppers log on to do last-minute shopping.

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“The impressive sales acceleration reported by both Walmart and Target in the most recent quarter implies both company’s expanding omni-channel initiatives are resonating with shoppers,” Bank of America analyst Robert Ohmes wrote. “This growth has outpaced that of other brick and mortar retailers as well as online players like Amazon, and has been supported by the rapid expansion of buy-online, pick-up in store options at both retailers.”

www.cnbc.com/2018/11/29/buy-walmart-target-as-online-sales-growth-starts-to-outpace-amazons.html

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