Editor's Note: Our Retail analyst Brian McGough will send subscribers a full report outlining our high-conviction thesis. In the meantime, below is a brief summary written by Hedgeye CEO Keith McCullough.
If you wait for sales, they will come...
I've been waiting and watching for a sale in WMT's shares and we're definitely getting that.
The way our Retail Investing guru, Brian McGough sees it (vs. Short KSS) is this:
"We’ve spent a considerable amount of time analyzing the evolving competitive dynamics in the large-cap discretionary retail US marketplace from both a top-down and bottom-up perspective. The fact is, WMT is overinvesting, Target is underinvesting. That’s plain as day. We’d be disingenuous not to call out WMT on the bull side of this given how much damage it is doing to incumbents. That being said, we are adding WMT to our list on the long side."
Buy Red,
KM