Strength in its domestic physical and digital operations has propelled results, and we expect the retailer to continue to successfully adapt to a changing retail landscape.
Scaled parts retailers like Advance are relatively well insulated from digital threats.
We're encouraged by the wide-moat retailer's ongoing robust growth, but we suggest investors await a more attractive entry point.
We'll trim our fair value estimate a tad, but our long-term forecast is intact.
Though the narrow-moat retailer's Family Dollar unit is struggling, we expect the firm's competitive strength to emerge as the unit recovers.
We are wary of the long-term competitive dynamic the no-moat retailer faces, given its lack of differentiation in a sector with virtually no switching costs.
Buying Keystone Foods gives no-moat Tyson international growth potential, but it won't significantly change the firm's ability to generate economic returns.
The wide-moat retailer's considerable competitive advantages should continue to translate well into digital retail.
We have long believed the narrow-moat firm's work to boost availability, improve efficiency, and optimize its supply chain and distribution network would boost performance.