Given the uncertain macroeconomic scenario and the grocery industry’s resilient nature, the sector is expected to stay buoyed in the foreseeable future. In this article, I evaluated two grocery chain stocks, Target Corporation (TGT) and Big Lots, Inc. (BIG), to determine which could generate better returns.
In April, the Personal Consumption Expenditures (PCE) price index rose 0.4% and was up 4.4% year-over-year, higher than 4.2% in March. With inflation still well above the Fed’s target of 2%, there seems a need for more interest rate hikes. Amid persistent inflation, strong job growth, and high borrowing costs, the economy will likely suffer a recession this year.
