Retail stocks have taken a beating lately due to rising margin pressures. Recently, the likes of Walmart (WMT) and Target (TGT) have missed their second-quarter earnings estimates by a country mile, suggesting that decreasing profit margins could be an industry-wide phenomenon moving forward. From a personal vantage point, I'm incredibly concerned for labor-intensive businesses due to the tight jobs market, which owns nearly two jobs for every unemployed American. Additionally, resilient commodity prices could cause a prolonged inflationary period, subsequently sustaining high-wage demands. Thus, I'm bearish on the following three stocks. The Home Depot Home Depot (HD) is overcooked and overvalued at the moment.
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Walmart (NYSE:WMT)
Historical Stock Chart
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Walmart (NYSE:WMT)
Historical Stock Chart
From Aug 2021 to Aug 2022 Click Here for more Walmart Charts.