Consumer defensive names look rich, but a handful of firms remain undervalued.
Positioning for omnichannel success may cost in the short term but should pay off in the long run.
Even if profit at the retail giant merely stabilizes, investors will be rewarded over the long run, writes Morningstar’s Ken Perkins.
With its strong distribution network, penetration into expensive categories, and solid sales trends, investors should expect Wal-Mart to be a competitive force in the e-commerce landscape.
The retailer is well positioned for the future, and investors with a long time horizon should consider the shares, writes Morningstar’s Ken Perkins.
We are decreasing our fair value estimate for Whole Foods as we now expect the grocery-store chain will no longer be able to expand its profit margin over time, writes Morningstar’s Ken Perkins.
Although we’re lowering our fair value estimate slightly, we think the market’s skepticism over business investments is misplaced, writes Morningstar’s Ken Perkins.
With a wide-moat and low uncertainty rating, the retailer offers a decent margin of safety today, says Morningstar's Ken Perkins.
The grocery store chain continues to report sluggish same-store growth, but the market is currently pricing in a too-pessimistic scenario, writes Morningstar’s Ken Perkins.
We believe better investment opportunities exist in the retail defensive space.
Target might perform better in the short term, but Wal-Mart's ability to drive returns on invested capital gives it a long-run advantage.
E-commerce and labor investments weigh on Wal-Mart's growth, but our long-term view is intact and shares are undervalued.
Investor returns could suffer if growth slows and valuation multiples contract from lofty levels.
Sales growth in the organic-food space should prove to be sustainable over the long term, but the related stocks are currently overvalued.
Wal-Mart’s comparable-store sales are trending in the right direction.
The market price doesn’t fully reflect Wal-Mart’s potential to leverage cost advantages and brand equity while expanding in multiple channels, says Morningstar’s Ken Perkins.
A competitive cost structure allows Costco to pass along more savings to customers, move more volume through its stores, and build a loyal membership base.
Challenges from Canadian operations and data breach await him.
Costco's superior cost advantages and potential for expansion remain compelling.
A bidding war is sizzling for this meat-centric firm, but Tyson is grazing dangerous terrain.
The discount retailer's scale advantages keep its operating costs lower than peers' and should help the firm sustain excess returns on invested capital for the foreseeable future.
The high-end grocer may be facing more competition, but the sell-off could present investors with a buying opportunity, says Morningstar’s Ken Perkins.
Amid the current challenging environment for defensive names, we see several opportunities for long-term investment in wide-moat companies at reasonable discounts.
Its loss-leader capabilities should drive unrivaled sales per square foot and excess returns.
Near-term challenges abound, but cost advantage should allow the retail giant to defend its turf.
The specialty grocery store's weak comp sales growth and lowered sales forecast sent shares spiraling, but Whole Foods still has much room to expand.
The market may be ignoring the boost in profitability that could occur with a bountiful 2013 crop.