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What does Goldman Sachs think of big-box retailers' future prospects?

What does Goldman Sachs think of big-box retailers' future prospects?
Asked by
Simon Mugo categorie-icon time-icon1 week ago
1 Answer Answer Question

Lillian McKenna
Answered time-icon1 week ago

Goldman Sachs Group Inc. (NYSE:GS) recently became very bullish on big-box retailers such as Home Depot, Target and Walmart as evidenced by a recent note sent to clients recommending the companies as potential buys.

The investment bank believes that a select number of big-box retailers including Costco and other niche operators are set to outperform in the coming year given their resilience in the face of uncertain global economic conditions created by the ongoing trade war.

The bank also believes that the retailers’ massive investments in their e-commerce operations among other strategic investments will pay off in the next year as they have withstood the massive threat posed by online retailers such as Amazon.

Kate McShane a Goldman Sachs analyst, issued a note saying “We are at an inflection point for several companies where we are starting to see a resumption of operating income dollar growth.” She added that after years of investments, many big-box retailers are now “true omnichannel retailers.”

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