This is probably controversial… and please don’t judge me… but I spent most of my life hating cheese.

I know, crazy.

But it just kinda became part of my identity at some point, and I didn’t question it.

Until one day, like five years ago, I gave it another shot. And turns out… cheese slaps. I’ve become this now:

And you know what? I think countries are having their cheese moment – but the cheese is crypto. For example:

• Bolivia: banned crypto completely in 2014 → lifted the ban last year;

• South Korea: banned corporate involvement in crypto trading in 2017 → lifted the ban this year;

• Russia: was strongly against crypto for years → now the government supports it for foreign trade and is pushing laws to legalize crypto mining and export;

• Vietnam: banned crypto payments in 2017 → this:

They passed the Law on Digital Technology Industry this weekend, making crypto legal and setting up rules to cover stuff like storage, creation, and transfers.

It comes into effect on January 1, 2026 – and it matters.

Because it’s another proof that crypto’s becoming impossible to ignore.

And let’s not forget – Vietnam has one of the fastest-growing economies in Southeast Asia. When a country like that starts treating crypto seriously, it’s a clear step toward mainstream, global adoption.

Moral of the story? Cheese is good, crypto’s getting recognized, and it might be time to take a bite

Stablecoins

Everyone keeps talking about how stablecoins are gonna be what takes crypto mainstream.

Tired of hearing that? Perfect – we’re gonna talk about it a bit more

We’ve already mentioned the GENIUS Act making its way through the US Senate. If it passes, it would give stablecoins legal clarity, basically making them safer to use and easier for companies and banks to support.

But it’s not just governments getting serious. Big businesses are clearly catching on, too:

• Shopify is planning to launch USDC payments on Base via Shopify Payments and Shop Pay later this year;

• Walmart and Amazon are reportedly thinking about launching their own dollar-backed stablecoins. The idea is to let customers pay at checkout using these coins instead of traditional credit or debit cards.

Now, these aren’t your local corner stores. These are giants – Shopify leads in e-commerce platforms, Amazon’s the world’s largest online retailer, and Walmart’s the world’s largest retailer.

If they think stablecoins are worth building around, that’s a pretty loud vote of confidence.

And stuff like this doesn’t just boost stablecoins – it helps the whole industry:

More stablecoins → more money on-chain → more trust, activity, and use cases → a stronger and more useful crypto ecosystem overall.

… So yeah, see why we can’t stfu about it?..

After reaching multi-year lows in 2024, Dollar General (DG 0.18%) and Dollar Tree (DLTR 1.17%) are staging epic recoveries in 2025.

Year to date (YTD) at the time of this writing, Dollar General has surged a staggering 49.5% and Dollar Tree is up 25.2%, compared to a mere 2.1% gain in the S&P 500 (SNPINDEX: ^GSPC).

Even with those gains, both stocks have drastically underperformed the S&P 500 and larger retailers like Walmart (WMT -1.68%) and Costco Wholesale (COST -1.12%) over the last few years.

Here’s what’s driving the rebound in discount retailers, and whether investors are better off with a 50/50 split of Dollar General and Dollar Tree or Walmart and Costco.

Image source: Getty Images.

Signs of improvement

The rebound in Dollar General and Dollar Tree provides a good lesson on the importance of expectations and valuation.

Going into this year, expectations for the discount retailers were as low as they could be. Both companies were struggling to offset inflationary pressures with price increases.

In 2021, Dollar Tree upped the base price of its products to $1.25, which cushioned profits but strained demand. It’s also worth mentioning that Dollar Tree is selling Family Dollar in the second quarter of 2025 for about $1 billion — a significant loss compared to the roughly $9 billion purchase price in 2015.

Frequent customers of Dollar General and Dollar Tree can be more sensitive to inflation and overall higher living costs than retail outlets that aren’t so value-focused. As a result, both companies rely on sales volume to offset their razor-thin margins. The business model can work well when consumer spending is strong, but it can backfire when people tighten their purse strings.

As you can see in the following chart, Dollar General continued boosting sales, but margins are near a 10-year low, reflecting pricing pressure. Dollar Tree’s margins are holding up, but its revenue is down significantly due to store closures and demand pressures.

DG Operating Margin (TTM) data by YCharts.

Despite lackluster results, recent financials for both companies show signs of improvement. Dollar General grew sales and earnings in its recent quarter. Dollar Tree got a jolt from improving results and potential cost savings from the Family Dollar spin-off.

Results for Dollar General and Dollar Tree weren’t great, but because expectations were so low and both stocks were so beaten down, the stage was set for an epic rebound, even if results were mediocre. However, some investors may prefer to go with higher-quality names like Walmart and Costco.

Delivering value and driving customer loyalty

Walmart and Costco have ultra-razor-thin margins, often lower than those of Dollar General and Dollar Tree. But the key difference is that Walmart and Costco deliver masterfully on their value propositions to customers.

Walmart caters to value-focused customers, just like dollar stores. Yet, it has grown sales steadily and sustained decent margins despite pullbacks in consumer spending, because it can go toe-to-toe on price with just about any brick-and-mortar retailer or e-commerce platform. Additionally, Walmart has built out other shopping options, like pickup, delivery through Walmart+, and more.

Similarly, Costco can afford to pass along value to customers on merchandise sales because it generates steady cash flow from annual membership rates. Costco makes the majority of its net income from membership fees, and profits very little from merchandise sales. Customers are incentivized to shop at Costco as much as possible to justify the membership, and Costco gives them good deals in return. Costco could charge more and boost near-term profits, but management is laser-focused on the brand’s strength and long-term customer loyalty.

Priced to perfection

Walmart and Costco are undeniably better businesses than Dollar General and Dollar Tree, but their valuations have reached sky-high levels. Even on a forward price-to-earnings (P/E) ratio basis, Costco and Walmart sport more expensive valuations than all of the “Magnificent Seven” stocks (except Tesla), whereas Dollar General and Dollar Tree have forward P/E ratios under 20.

COST PE Ratio (Forward) data by YCharts.

Over the long term, quality is more important than present-day valuation, because a company that consistently improves earnings can grow into its valuation. But if a company’s stock price keeps increasing faster than its earnings rise, its valuation will remain inflated. This dynamic has been at play with Walmart and Costco, which have seen their P/E ratios balloon far above their historical averages due to their stock prices outpacing earnings growth.

What’s more, both stocks no longer have serviceable dividend yields because their stock prices have outpaced their dividend growth rates. Walmart yields just 0.9% and Costco yields 0.5%. Dollar General sports a decent yield of 2.1%, and Dollar Tree has never paid a dividend. Granted, Costco occasionally pays special dividends when its cash on the balance sheet reaches a comfortable level. But even during special dividend years, like in 2024 and 2020, Costco still only yields around 2% to 3%.

The better buy now

If I had to pick, I’d go with a 50/50 split of Dollar General and Dollar Tree over Walmart and Costco simply because their valuations are so much lower, and Walmart and Costco aren’t growing quickly enough to justify their high valuations. At that valuation level, investors are arguably better off buying a top growth stock like Microsoft, which is expanding margins and consistently generating strong revenue growth.

Walmart and Costco are phenomenal companies, but a great company isn’t always worth investing in if its valuation is at nose-bleed levels — especially when faster-growing alternatives are available at reasonable multiples.

The stock market’s sharp sell-off is testing investors’ patience. The recent tariff implementations and pauses have created a lot of near-term uncertainty.

That’s particularly true for global retailers like Walmart (WMT 2.42%) and Target (TGT 0.05%) that sell goods and source materials in different countries. However, with overall stocks down, you can use this as a buying opportunity — if the long-term fundamentals remain sound.

Which one of these two retail giants offers better investment potential for those planning to buy and hold for the long haul?

Image source: Getty Images.

Walmart

Walmart operates namesake stores in the U.S. and internationally. It also runs Sam’s Club, a membership club with warehouses in the U.S. and Puerto Rico. The Walmart U.S. business accounted for 69% of last year’s $676.3 billion in sales.

The business was founded on keeping costs and prices ultra-low, and that remains true. Management continues to invest heavily in technology that combines its physical stores with e-commerce to offer convenience and fast delivery.

For instance, almost all U.S. Walmart stores have same-day pickup and delivery. Management also launched Walmart+, a subscription service that offers free shipping, discounts on gas, and a more efficient checkout process, a few years ago.

The low prices and convenience continue to draw customers. The Walmart U.S. segment saw same-store sales (comps) increase 4.6% in its fiscal 2025 fourth quarter. Higher traffic contributed 2.8 percentage points. with increased spending accounting for the balance. This period ended on Jan. 31.

The company remains highly profitable, putting it in a good position to increase investments to stay ahead of the competition. Fourth-quarter operating income, adjusted for certain non-operating expenses and excluding foreign currency fluctuations, grew 9.4% to $7.9 billion.

Walmart’s share price hasn’t been immune from the recent stock market sell-off. The stock has dropped 0.8% in 2025 (through April 9) versus 7.2% for the S&P 500 index, although that index fell more during the recent market downturn.

That valuation has remained constant since the start of the year. The stock has a price-to-earnings (P/E) ratio of 37.

Target

Target sells a wide array of goods, including apparel, beauty, home furnishings, food/beverage, and household essentials. It aims to differentiate itself by offering merchandise under its own brands and those sold exclusively at its stores and website.

The company’s sales have been hurt lately as consumers have focused on basic items in the wake of rising costs. Still, Target’s fiscal fourth-quarter comps increased 1.5%, driven by higher traffic that contributed 2.1 percentage points. The amount customers spent dropped 0.6 percentage points. The period ended on Feb. 1

Target’s gross margin contracted 0.4 percentage points to 26.2%. That’s due in part to higher promotional activity and markdowns.

Although management has given a cautious outlook for the year, including flat comps, the higher traffic shows people still like to shop at Target. They’re just spending less right now and are drawn to discounts. That’s likely due to larger economic forces that will subside at some point.

Target’s stock price has taken it on the chin. The share price has fallen nearly 28% this year. That’s partly due to tariff implementations and the feared economic effect on Target’s costs and prices that will impact short-term profitability.

The shares have become cheaper, however. The stock trades at a P/E of 11, down from 14 at the start of 2025.

Which retailer to choose?

I like both retailers. Walmart’s ultra-low prices will always attract customers. It’s particularly true during challenging economic times. That’s why its share price has held up relatively well.

Target depends on differentiated merchandise, and its customers will likely trade down to lower-priced merchandise when tough times come. But over the long run, people will likely return to Target.

Based on Target’s attractive valuation and favorable long-term outlook, I’d choose its stock over Walmart right now.

Reading the headlines might make you nervous about stock investing. After all, you’re hearing about tariffs, stubborn inflation, and the possibility of a recession.

Nonetheless, it’s imperative to take a long-term view. Granted, it’s more challenging during volatile market movements, but it’s impossible to predict short-term movements. Buying strong businesses, despite short-term fluctuations, typically rewards shareholders.

Walmart (WMT 2.56%) has long been a successful retailer. While it’s a competitive industry, the company remains formidable, and here are a few reasons why I think it should be part of your portfolio.

Image source: Getty Images.

1. Simple business, well executed

Many companies try to contain costs. But it’s deeply ingrained into Walmart’s culture. Since opening the first discount store in the early 1960s, management has been focused on keeping costs low so that it can pass those savings on to customers in the form of low prices.

Indeed, you’d be hard pressed to find competitors that can undercut Walmart’s prices. No wonder the retailer serves more than 250 million shoppers every week at its stores and websites.

Clearly, its plan is working. You can see the proof in its results. Walmart generated over $680 billion in revenue in the latest fiscal year (ended Jan. 31), up 5.6% after removing foreign currency translation effects. Its adjusted operating profit increased 9.7% to $29.7 billion.

2. Attracting a crowd

Of course, the past doesn’t guarantee future results. However, with the business in a good place, it’s well positioned for future growth.

With its ultra-low prices, Walmart always attracts crowds. But it draws more customers during difficult economic times, including the current inflationary environment.

In the fourth quarter, same-store sales (comps) in its core U.S. segment increased 4.6%. Importantly, more than half, 2.8 percentage points, came from higher traffic.Walmart has gained market share over its rivals, and it’s attracting a higher-income demographic.

With economic uncertainty from higher tariffs, including higher costs and a potential recession, Walmart’s low prices put it in a good position to grow customers and revenue. It’s one of the rare businesses that financially benefits during difficult economic times.

3. Investing for the future

Management hasn’t rested on its laurels. Walmart invested in technology initiatives that have kept it in a strong competitive position and continues to look toward the future. It plans to spend 3% to 3.5% of sales on capital expenditures this year. With sales approaching $700 billion, that’s a large figure.

Walmart has invested to ensure a better consumer experience. This includes online ordering and pickup in stores. Many locations offer same-day delivery.

Walmart has also pushed into other areas. This includes Walmart+, a subscription service that provides things like free shipping, a more efficient checkout process, and discounted gas.

With its huge customer base, Walmart has a lot of data. It uses this in its advertising business. Although currently totaling less than 1% of the company’s annual revenue, it grew 27% last year. However, advertising is a very profitable business. While it will undoubtedly take time, this could become a major revenue contributor down the line.

Putting it all together

Ultra-low prices, convenience, and a management team committed to investing to maintain its competitive edge adds up to an attractive long-term investment.

Of course, the stock price reflects investors’ high expectations. The share price has gained nearly 39% over the past year through March 13, outpacing the S&P 500 index by about 20 percentage points at the time of this writing.

Walmart’s shares sell at a price-to-earnings (P/E) ratio of 35 compared to 28 for the S&P 500.

If the valuation gives you pause, you can steadily invest funds since you’re planning on holding Walmart’s shares for a long time. Dollar-cost averaging allows you to smooth out your purchases since you commit the same dollar amount at regular intervals.