Holiday shopping season is fast approaching, and two names that are traditionally associated with the holidays are Walmart and Target. In a new report, Macquarie analyst Bob Summers takes a close look at the two retailers and reveals Macquarie’s take on the stocks.

Earnings

Walmart’s Q3 earnings were slightly encouraging for the company, which has lost nearly 30 percent of its market cap in 2015. Summers notes that Walmart is still very early in its turnaround efforts and expectations at this point are relatively low.

Target’s Q3 earnings, on the other hand, gave the market reason for concern over gross margins, inventory and mobile growth. Target reported in-line earnings and same-stores growth, however, and Summers feels that the stock’s sell-off was overdone.

Traffic

In terms of traffic, Walmart posted…

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