Walmart > Target

$WMT $TGT

Two of the largest retailers now have earnings behind them, and it’s very apparent who the winner is -

I’m not betting against this ratio recapturing prior highs.

WMT 0.00%↑ has been a complete homerun this year -

We can see that the stock hasn’t experienced relative strength of this magnitude since 2017. What followed after was a roughly 25% pullback, which if you’re not currently in the name, would look to be a gift of an entry point. From here, that takes the stock back to around $67. I have no idea if we get back there, but a LEAP put out in Jan ‘26 at that price level is paying ~$1.50 currently. There are unfilled gaps around $60 and $70, so perhaps it’s an event we see next year at some point.

Conversely, a continuation pattern in TGT 0.00%↑ lends to a retest of the October ‘23 lows. I’m not currently involved, but might look to short if there are any weak bounces towards $142.