Yahoo Finance's Brian Sozzi walks through a chart from Boring Biz, using S&P Global Market Intelligence data, that compares company valuations. The hyperscalers (Microsoft, Amazon, Alphabet, Meta and Oracle) averaged 20.9% revenue growth over the latest 12 months, with an average forward P/E of 20.7x after a major sell-off, above the S&P 500's roughly 19x. Costco and Walmart trade at about 44x and 41x forward estimated earnings, while Home Depot is at 21.4x, Meta at 18.7x and Oracle at 15.3x. He says concerns about free cash flow have compressed tech valuations and that investors are showing a flight to safety into names like Costco and Walmart.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
valuationtech stocksconsumer goodsCostcoWalmart
Open a keyword to see other news on the same topic.
Related tickers and likely impact
MSFT
• NeutralMicrosoft
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Systems Software |
| Market cap | $3.9T |
| Close on 10/30/2026 | 521.91 |
| Change that session | -1.55% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- If a Stock Market Crash Is Coming, These 5 Stocks Have a History of Holding Up
The article names five stocks, Costco, TJX Companies, Coca-Cola, Procter & Gamble and Walmart, that have held up through past market crashes, including in 2008, 2018 and 2022. All five pay dividends, and Coca-Cola, Procter & Gamble and Walmart are Dividend Kings, having raised dividends for at least 50 consecutive years. Costco's sales grew 13% year over year in September, and its stock gained 49% the year after a downturn in which it lagged the index. TJX sells off-price goods at 20% to 60% below retail across 5,200 stores, with EPS up 24% in its fiscal second quarter, while Coca-Cola is up 40% this year. Walmart's e-commerce sales rose 23% in its fiscal second quarter ended July 31.
- Costco (COST) vs. Walmart (WMT): Which Retailing Giant Has a Wider Moat?
Costco (COST) and Walmart (WMT) have returned -0.71% and -5.38%, respectively, over the six months to October 15. Costco keeps customers returning through its membership model, low prices and the Kirkland Signature brand, while Walmart can grow its e-commerce, advertising and third-party marketplace by leveraging its large customer base and store network. Costco posted fiscal 2026 revenue of $303.2 billion, including $5.9 billion from membership fees, and net income up 14% to $9.2 billion; it ended the year with 84.1 million paid members and a 92.3% renewal rate in the US and Canada. In fiscal Q2 2027, Walmart's global e-commerce sales rose 23% and advertising rose 38%, yet Walmart US comparable sales grew only 2.6%. Costco trades at 40.32x forward earnings versus 38.02x for Walmart.
- Is Walmart the Safest Stock to Own if the Tech Sell-Off Gets Worse?
The article notes that investors often turn to consumer staples such as Walmart (WMT) during downturns, as its lower prices attract both budget-conscious shoppers and higher-income customers. In 2022, Walmart stock fell only 2%, versus a 19% drop in the S&P 500 and a 33% drop in the Nasdaq Composite; in 2008, it rose 18% while the S&P 500 fell 38%. Although Walmart is up 9% since Sept. 30 and its year-to-date return is 13%, the author says its valuation is high, at about 43 times earnings versus a 10-year average of 32. Expected earnings growth of about 9% for fiscal 2027 and 11% for fiscal 2028 is not enough to justify that valuation, so the author does not consider it the safest stock if conditions worsen.
- Walmart (NASDAQ: WMT) Stock Price Up 2.8% – Still a Buy?
Walmart shares rose 2.8% in mid-day trading on Thursday, reaching a high of $121.18 and last trading at $121.12, up from a prior close of $117.80. Volume of 27,516,999 shares was 10% above the average of 24,985,637. The article cites demand for consumer-staples stocks during October's rally, Agent Gateway tools that let third-party AI agents shop for customers, and a $120 Walmart+ and Sam's Club bundle, while a premium valuation and Kroger's plan to invest $5 billion in lower prices and cut corporate jobs using AI could pressure Walmart's margins. The analyst consensus is 'Buy' with an average target price of $132.41, and the latest quarter showed EPS of $0.81 versus a $0.74 estimate and revenue of $187.94 billion, up 5.9% year over year.
- Why This Analyst Thinks Walmart Stock Is a Buy After Its Worst Day in 5 Years
Deutsche Bank says Walmart's growing marketplace, advertising and membership businesses could lift margins and help drive its shares higher.
- Inflation Just Hit 3.7%. Here's Why Walmart and Costco Could Be the Biggest Winners.
The US Consumer Price Index rose 3.7% over the 12 months ending in September, up from 3.4% in August, according to the Bureau of Labor Statistics. Gasoline was the biggest driver, up 9.1% for the month and 34.2% over the year, while core inflation was 2.6%. Food away from home rose 3.5% over the year, faster than the 1.8% increase in food bought to cook at home. The article argues Walmart (WMT) and Costco (COST) benefit from thin markups and value pricing, with Costco's fiscal fourth-quarter sales up 11.2% to $93.9 billion and Walmart's revenue up 5.9% to $187.9 billion. Walmart trades above its own five-year median on forward earnings, while Costco is near its historical average, and the author says neither is a bargain.
Related markets
Latest news
- Trump committee hearing on Fed Governor Lisa Cook rescheduled to Dec. 14
A special committee appointed by President Donald Trump has rescheduled the hearing for Federal Reserve Governor Lisa Cook to Dec. 14, a White House official said Wednesday. Trump set up the “committee of inquiry” in early October to investigate allegations that Cook made false statements related to “one or more mortgage instruments.” The New York Times first reported the rescheduling.
- Plain gold ring and gold bar prices rise simultaneously on Nov. 5 at SJC, PNJ, Bao Tin Minh Chau, DOJI and Bao Tin Manh Hai
At the open on Nov. 5, domestic gold prices were little changed from the previous session's close. Gold rings were quoted at 136.5–140.8 million VND per tael and SJC gold bars at 139.4–142.4 million VND per tael. Spot gold on the international market reached 4,069 USD per ounce, up 0.22%, after a 3.4% gain in the prior session. The rally was supported by a weaker US dollar after the Democrats' decisive win in the US midterm elections, alongside concerns over US fiscal prospects. Investors are watching this week's US jobs data for clues on the Federal Reserve's interest rate outlook.
- Amazon workers in the Greater Toronto Area launch fight for better jobs with Unifor
Amazon workers across the Greater Toronto Area have launched a new organizing drive with Unifor, seeking safe jobs, fair pay and respect ahead of Black Friday. The union notes Amazon reported US$28.1 billion in operating income in Q3 2026, with an operating margin of almost 14%, its highest ever, while many associates received a wage increase of only $1/hour in 2026. Workplace Safety and Insurance Board data shows Amazon's 2025 injury rate was more than double its 2020 level, and annual injury claims have nearly tripled. Ontario holds more than half of Amazon's Canadian workforce, and workers at the YVR2 warehouse in Delta, B.C. are close to securing the first collective agreement at Amazon in North America. Unifor, Canada's largest private-sector union with 320,000 workers, says workers have a legal right to organize.
- Solana Foundation payments lead: Banks will hold cash on-chain
Jamal Raees, payments lead at the Solana Foundation, says bank deposit tokens such as JPMorgan's JPMD will win corporate treasury business, while stablecoins from Circle and Tether will keep the global payment rails needed to move money.
- S&P 500, Nasdaq Surge Ahead After Democratic Sweep, Dow Jumps To One-Year High On Lower Oil — AAPL, SNAP, INTC, CRWV, QCOM In Focus
U.S. stock indices closed higher on Wednesday as tech and chipmaker shares recovered, with traders betting a Democratic sweep would slow AI capital spending. The S&P 500 gained 2%, the Nasdaq 100 rose 1%, and the Dow Jones jumped 3% to a one-year high, while WTI and Brent crude each fell about 8%. In contrast, semiconductor ETFs SMH and iShares Semiconductor dropped about 3% amid weakness in NVDA, MU and AVGO. Analysts said a divided government may limit additional fiscal stimulus and ease pressure on Treasury yields. Snap shares tumbled 11% after hours, and Intel CEO Lip-Bu Tan bought 150,000 shares worth $9.7 million through a family trust.
- A 'demand decade' ahead for energy? BP, Baker Hughes CEOs weigh the investment outlook
Rising energy demand is opening new investment opportunities, though geopolitical risks and uncertain oil prices are challenging the industry. Baker Hughes CEO Lorenzo Simonelli is optimistic about the long term, citing AI, population growth and developing nations, and says the industry has a 'demand decade' ahead. He expects industry activity to rise by a low-single-digit percentage in 2027 and says the Middle East conflict highlights the need for more resilient infrastructure, including storage and pipelines. RWE CEO Markus Krebber says AI and electrification are driving electricity demand, but geopolitical tensions, supply chain pressures and higher interest rates are complicating investment decisions. BP CEO Meg O'Neill stresses that wide forecast ranges for global energy demand matter for long-lived projects, while Energy Aspects expects oil markets could be oversupplied in 2027 and 2028 if Middle East flows return to normal.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.