Hey Traders,

It’s that time again when the gang gets together on Monday morning for our Ticker Highlight Show to play what I’d like to call “One to Love, and One to Leave”. I was just reminiscing about my July 27 picks:  Western Digital to love, and Dropbox to leave.  Since that day Western Digital is up 28.5% and Box is down 1%.  Don’t you love it when that happens?

So let’s do it again.

Let’s line up two household names that couldn’t be on more different paths right now: Amazon and Walmart. Both are giants, both are survivors, but only one has the kind of edge I want in my corner.

One to Love: AMZN

Amazon first. On the surface, you might think this stock has already run too far, but take a closer look. Its PE and PEG ratios tell the story — relative to growth, Amazon is actually looking cheaper than people think. 

And unlike a lot of tech that’s “hype first, profits later,” Amazon has this sneaky combination of real-world dominance and digital infrastructure that’s becoming the backbone of the AI economy. 

Call it the AI highway, because every new AI app or service seems to be funneling spend into AWS. That kind of non-cyclical positioning matters in a world where the economy may be wobbling — AI infrastructure buildout doesn’t exactly wait for GDP to perk up. It’s the Printing Press. It’s happening.

One to Leave: WMT

Now Walmart. 

Look, I respect the blue vests as much as anyone, but retail is a tougher game in a sluggish economy. Consumers tighten belts, margins get squeezed, and suddenly that massive scale feels more like a drag than a weapon. 

Walmart isn’t the rather poor, slightly dirty experience that it once was – and they’ve nailed the online shop/pickup thing nicely.  So for sure, Walmart will grind along, but it’s hard to see real upside beyond “safe haven” status.

The problem is, safe havens don’t compound like disruptors.

So for me, this matchup isn’t close. One is stuck in traffic, the other is building the highway everyone else needs to drive on. And best of all?  Amazon trades at lower PE and lower PEG ratios, by quite a lot.  Are there really any more questions here?  

Love Amazon here. Leave Walmart to the bargain bin.

Add the Ticker Highlight Show to your calendar here.

To your health and income,

Hans