The macroeconomic headwinds continue to hurt consumers’ discretionary spending. Nonetheless, Goldman Sachs’ survey shows that holiday season sales could exceed expectations. Moreover, the survey reveals that Amazon (NASDAQ:AMZN) and Walmart (NYSE:WMT) remain the top shopping destinations, indicating they are the most promising holiday season stocks.
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Brooke Roach of Goldman Sachs noted that the survey indicates that 61% of respondents plan to spend the same or more on holiday gifts this year, reflecting a seven-percentage-point increase from the previous year.
With this backdrop, let’s look at the Street’s forecast for AMZN and WMT stocks.
What Do Analysts Say About Amazon?
Amazon is expected to benefit from the slew of measures it has taken to improve customers’ shopping experiences, such as social media ads and fast delivery. Moreover, its focus on offering value to consumers through deals and promotions will likely drive its Prime membership and overall sales.
Wall Street analysts are bullish about Amazon. The stock has received 40 unanimous Buy recommendations, translating into a Strong Buy consensus rating. AMZN stock has risen by about 74% year-to-date. Despite the significant growth, analysts see further upside potential. The average AMZN stock price target of $175.51 implies an upside potential of 20.11% from current levels over the next 12 months.
What is the Prediction for Walmart Stock?
Thanks to its value proposition compared to peers, Walmart is poised to attract more customers to its stores and website. Moreover, the retailer offers discounted access to its Walmart Plus memberships and plans to grant members early access to the best savings events throughout the holiday season. This will support its revenue during the crucial fourth quarter.
Given the positives, analysts maintain their bullish outlook on Walmart stock. With 25 Buy and five Hold recommendations, WMT stock has a Strong Buy consensus rating. Further, the average WMT stock price target of $181.14 implies an upside potential of 16.64% from current levels.
Bottom Line
Amazon and Walmart continue to invest in their e-commerce platforms and physical stores to widen their omnichannel advantage over their peers. Moreover, the focus on driving customer engagement and maintaining competitive price gaps positions them well to capitalize on holiday sales. While both stocks are rated a Strong Buy, AMZN offers a higher upside potential from the current levels.
