Better Beaten-Down Retailer: Target vs. Dollar General

Certain retail stocks have faced difficult times recently. While the economy is generally doing well and remains near full employment, multiple years of above-normal inflation and higher interest rates have stressed consumers.Two retail stocks that have been decimated are Target (NYSE: TGT) and Dollar General (NYSE: DG). Each is far below its all-time highs, and both appear to trade at bargain valuations. But which stock is the better bargain today?In the chart below, one can see how far each company has fallen. Target began its descent in late 2021 when many stocks related to home goods and other physical items began to feel the post-pandemic hangover. Dollar General then collapsed in early 2022 and has seen its stock fall even further. While each stock traded at a mid-20s price-to-earnings (P/E) multiple at some point during the past few years, both stocks have seen their valuations collapse, even as earnings have declined.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool