Bentonville, Arkansas-based Walmart Inc. (WMT) operates discount stores, supercenters, and neighborhood markets. With a market cap of $744.7 billion, the company offers merchandise such as apparel, housewares, small appliances, electronics, musical instruments, books, home improvement, shoes, jewelry, toddler, games, household essentials, pets, pharmaceutical products, party supplies, and automotive tools.
Companies worth $200 billion or more are generally described as “mega-cap stocks,” and WMT definitely fits that description, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the discount stores industry. Through innovation, Walmart strives to continuously improve a customer-centric experience that seamlessly integrates its eCommerce and retail stores in an omni-channel offering that saves time for customers, making it is the world’s largest retailer.
Despite its notable strength, Walmart shares touched their 52-week high of $93.59 in the last trading session. Over the past three months, WMT stock gained 21.2%, outperforming the SPDR S&P Retail ETF’s (XRT) 10.9% gains during the same time frame.
In the longer term, shares of Walmart rose 77.9% on a YTD basis and climbed 81.8% over the past 52 weeks, outperforming XRT’s YTD gains of 15.1% and 24.2% returns over the last year.
To confirm the bullish trend, WMT has mostly traded above its 50-day and 200-day moving averages since early January, with some fluctuations.
Walmart's impressive performance is fueled by a combination of increased in-store foot traffic and higher e-commerce sales. The company's strong market position and strategic investments in e-commerce infrastructure have been key drivers of its success. Walmart's popular private-label products, along with the growth of its Walmart+ membership program and expanded pickup and delivery services, have contributed to its strong performance. Moreover, the company's investments in sophisticated fulfillment network and marketplace expansion, have supported its growth and transformation.
On Nov. 19, WMT shares closed up 3% after reporting its Q3 results. Its revenue of $169.6 billion surpassed analyst estimates of $166.6 billion. The company’s adjusted EPS was $0.58, exceeding analyst estimates of $0.53.
Walmart’s rival, Costco Wholesale Corporation (COST)shares lagged behind the stock, with 48.8% returns on a YTD basis and 64.7% gains over the past 52 weeks.
Wall Street analysts are bullish on Walmart’s prospects. The stock has a consensus “Strong Buy” rating from the 36 analysts covering it, and the mean price target of $96.74 suggests a potential upside of 3.5% from current price levels.
