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Target vs. BJ Wholesale: Which Retail Stock is a Better Buy?

imageStock Markets20 minutes ago (May 21, 2021 02:30PM ET)

(C) Reuters. Target vs. BJ Wholesale: Which Retail Stock is a Better Buy?

The retail market is changing rapidly with Amazon (NASDAQ:AMZN) and other major e-commerce players increasingly grabbing customers from traditional brick-and-mortar retail chains. However, retail giants Target (TGT) and BJ wholesale (BJ) have survived COVID-19-pandemic-led disruptions by strengthening their online presence. We think the change in the way they do business and the gradual increase in foot traffic in their retail stores with the economy’s reopening should help both companies grow in the coming months. But let’s find out which of these two stocks is a better buy now.Target Corporation (NYSE:TGT) and BJ’s Wholesale Club Holdings, Inc. (BJ) are two established players in the retail industry. TGT sells a broad range of household goods, food and pet supplies, apparel and accessories, electronics, decor, and other items under national brands and owned and exclusive brands. BJ is a one-stop shopping destination filled with various brands, including its exclusive Wellsley Farms and Berkley Jensen brands, along with USDA Choice meats and organic food products.

The retail industry was shaken severely during the pandemic, with COVID-19 related restrictions leading bringing store operations to a halt last year. To stay afloat and compete with mega e-commerce players such as Amazon (AMZN), many retail players invested heavily to establish or enhance their online stores. Now that the waning coronavirus threat is leading consumers back to brick-and-mortar retailers–many of which them are already performing well with their online platforms–we think retailers TGT and BJ should witness solid growth.

While TGT has gained 85.4% over the past year, BJ has returned 59.3%. Furthermore, TGT has gained 28.7% over the past six months versus BJ’s 9.9%. But which of these two stocks is a better pick now? Let’s find out.

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Target vs. BJ Wholesale: Which Retail Stock is a Better Buy?

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