With its cult-like following of customers, Apple boasts the highest sales per square foot of any retailer in the U.S. But the iDevice maker is facing increased competition and the prospect of persistent margin pressure. However, its recent share price decline largely reflects a more cautious outlook and doesn’t fully appreciate the strong demand for Apple’s existing products, likely pipeline of new ones, and opportunities in China.
Whole Foods Market is committed to food quality and safety, environmental sustainability, and animal welfare. These values represent the main reasons their loyal customer base consistently plunks down big dollars at the registers. Thankfully for Whole Foods, their higher-end consumers have the coin to do so, as they’ve held up significantly better than lower-income households during the economic downturn.
Market dominance and convenience have made Amazon.com and Tractor Supply widely successful with their respective customers. Amazon.com is synonymous with online shopping, unparalleled product selection, and convenience. And this will only continue as the company expands its same-day delivery service and builds new warehouses close to major cities to accommodate faster shipping times.
Meanwhile, Tractor Supply conveniently caters to farmers and ranchers who live far from cities. Its business model benefits by being somewhat insulated from big-box rivals that are more dependent on suburban locations. Like Amazon, Tractor Supply offers a plethora of diverse and unique goods. Where else can you buy livestock and licorice under the same roof 100 miles from the closest city?
Foolish investors know it’s not wise to evaluate a company based on a single metric. So, gauge those measures you feel are most important. Based on my research, I like Apple the best of these stocks right now. I believe the company’s long-term growth prospects remain very compelling, despite the recent bumps in the road. And I think its stock is terrifically priced today.
The article 1 Interesting Way to Evaluate Retailers originally appeared on Fool.com and is written by Nicole Seghetti.
Fool contributor Nicole Seghetti owns shares of Apple. The Motley Fool recommends Amazon.com, Apple, Coach, and Whole Foods Market. The Motley Fool owns shares of Amazon.com, Apple, Coach, and Whole Foods Market.
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