Kroger And Walmart: A Look Away From Amazon

May 09, 2022 6:00 AM ETThe Kroger Co. (KR), WMT2 Comments

Summary

  • U.S. grocery e-commerce is the fastest-growing product category online.
  • Most investors focus (rightfully) on Amazon, yet Kroger and Walmart are also leaders in the grocery space, both offline and online.
  • You will see why Kroger holds a more attractive spot than Walmart on our investing roadmap.
  • In uncertain times like these, a simple roadmap helps us generate higher returns at lower risks with fewer but well-understood holdings like Kroger.
  • Looking for a helping hand in the market? Members of Envision Early Retirement get exclusive ideas and guidance to navigate any climate. Learn More »

high angle view Online shopping mobile app holding by asian chinese housewife in front of kitchen counter

Edwin Tan/iStock via Getty Images

The investment thesis

E-commerce is the future, and most of the spotlight in this future is focused on Amazon, for good reasons. However, going forward, grocery e-commerce is the fastest sub-category. And eMarketer estimated that

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Source:eMarketer.com

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Source: author

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Source: Seeking Alpha

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Source: author and Seeking Alpha.

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Source: KR earnings report

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Source: WMT earnings report

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This article was written by

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** Disclosure: I am associated with Sensor Unlimited.

** Master of Science, 2004, Stanford University, Stanford, CA 

Department of Management Science and Engineering, with concentration in quantitative investment 

** PhD,  2006, Stanford University, Stanford, CA 

Department of Mechanical Engineering, with concentration in  advanced and renewable energy solutions

** 15 years of investment management experiences 

Since 2006, have been actively analyzing stocks and the overall market, managing various portfolios and accounts and providing investment counseling to many relatives and friends.

** Diverse background and holistic approach 

Combined with Sensor Unlimited, we provide more than 3 decades of hands-on experience in high-tech R&D and consulting, housing market, credit market, and actual portfolio management. We monitor several asset classes for tactical opportunities. Examples include less-covered stocks ideas (such as our past holdings like CRUS and FL), the credit and REIT market, short-term and long-term bond trade opportunities, and gold-silver trade opportunities. 

I also take a holistic view and watch out on aspects (both dangers and opportunities) often neglected – such as tax considerations (always a large chunk of return), fitness with the rest of holdings (no holding is good or bad until it is examined under the context of what we already hold), and allocation across asset classes.

Above all, like many SA readers and writers, I am a curious investor – I look forward to constantly learn, re-learn, and de-learn with this wonderful community.

Disclosure: I/we have a beneficial long position in the shares of ALL STOCKES IN THE TACTICAL HOLDINGS LIST either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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