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Arkansas-based Walmart Inc. (WMT) is a retail giant known for its extensive network of stores, low prices, and substantial market presence. With a market cap of $529.9 billion, Walmart is one of the most valuable companies in the retail sector. Competing fiercely with other retail behemoths, Walmart's main rivals include Amazon (AMZN), which has revolutionized online shopping, and Target (TGT), known for its trendy yet affordable product offerings.
Companies worth $200 billion or more are generally described as "mega-cap stocks," and Walmart definitely fits that description. A long-time market leader in the retail industry, Walmart has established a dominant footprint in the consumer goods market and developed strong brand loyalty, which has also translated into a steady source of recurring revenue via its e-commerce and omnichannel strategies.
The retail giant has climbed to a new high of $69.50 in the last trading session, with WMT up 12.2% over the last 3 months. Over this same period, the Dow Jones Industrial Average Index ($DOWI) has declined marginally, so WMT stands out as a serious outperformer.
Longer term, WMT is up 25.1% on a YTD basis, and the shares are now holding onto a solid gain of 34.7% over the past 52 weeks. In comparison, the DOW is up 2.6% in 2024 and 16.9% over the past year.
To confirm the bullish price trend, WMT has been trading above 200-day moving averages since late December 2023 and higher than its 50-day moving average since mid-May.
Despite facing challenges such as a volatile spending environment and disturbances caused by an early Easter, Walmart's remarkable price performance compared to broader market indices in 2024 can be attributed to a strong Q1 earnings report released on May 16. Following the release, the company's shares soared to an all-time high as it revised its full-year forecast upward. The stock gained almost 7% on the earnings release day.
Highlighting the contrast in performance, WMT's top competitor, Amazon, has outperformed both WMT and the broader market indexes. AMZN has gained 46.9% over the last 52 weeks and is up 16.1% on a YTD basis.
Given its impressive price performance, analysts are optimistic about WMT's prospects. The stock has a consensus rating of "Strong Buy" from 30 analysts in coverage. The mean price target of $70.61 reflects a 7.4% premium over current levels. If WMT were to reach this target, it would mark another record high.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
