We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Walmart Earnings: Buy This Surging Blue-Chip Stock Now and Hold?
Read MoreHide Full Article
Walmart ((WMT - Free Report) ) stock hit new highs on Wednesday, with the retail titan up 25% over the last 12 months to crush the S&P 500’s 7%, Amazon’s -3% decline, and Target’s 22% fall.
WMT posted blowout Q1 (FY24) results in May and upped its guidance as more shoppers of all income levels try to save on essentials.
Now let’s see why Walmart, which lands a Zacks Rank #2 (Buy) ahead of its August 17 earnings release, might be a great blue-chip stock to buy for your long-term portfolio.
A Giant Adapts for the Future
Like everyone in retail, Walmart now offers every form of delivery and pick-up possible to make its shopping experience as convenient as ever. WMT’s push to compete against Amazon ((AMZN - Free Report) ) and Target ((TGT - Free Report) ) includes its own subscription service dubbed Walmart+.
Walmart is also focused on partnerships with popular digital native retailers and bringing in more businesses to its third-party marketplace. On top of that, the company is growing its own advertising segment as more customers start their shopping searches on Walmart.com.
Image Source: Zacks Investment Research
The company’s U.S. comps jumped 6.6% last year (up 13% on a two-year stack), while its U.S. e-commerce segment climbed by 12% (23% on a two-year stack). Overall, Walmart has roughly doubled its e-commerce business over the past three years.
Walmart is also crucially continuing to innovate and push forward into new tech-focused and automation frontiers at its warehouses, stores, and beyond to compete alongside Amazon and others over the long haul, with an eye toward increasing profitably as well.
Image Source: Zacks Investment Research
Other Fundamentals
Walmart generated $611 billion in revenue last year (its fiscal 2023) to blow away Amazon’s $514 billion, Apple’s $394 billion, and Exxon Mobil’s $414 billion. WMT posted nearly 7% revenue growth last year to reach that level and continue its impressive run of top-line expansion as it maintains its standing as the one-stop-shopping power.
WMT posted blowout Q1 (FY24) results in May and upped its guidance as more shoppers of all income levels try to save on essentials.
Image Source: Zacks Investment Research
Zacks estimates call for Walmart U.S. to post 3.7% same-store sales growth in FY24. The company's overall revenue is projected to climb roughly 4% higher both this year and next to hit $660.17 billion next year.
Walmart’s adjusted earnings are projected to come in slightly lower this year (-0.95%) but then surge 11% higher next year. And WMT boasts an impressive history of bottom-line beats, including a 12% average beat in the trailing four quarters. And its most recent/most accurate EPS estimates came in above consensus.
WMT stock has climbed 80% over the last five years vs. the S&P 500’s 60%, Target’s 57%, and Amazon’s 45%. Walmart has crushed its rival Target over the last year-plus and climbed to new highs because its core business is far more focused on essentials, which are in vogue again after the covid spending boom ended.
Despite sitting at new highs, Walmart trades at a 9% discount to its own 10-year highs at 24.5X forward 12-month earnings. On top of that, Walmart recently broke above its previous 2022 highs, which could be a bullish signal.
Image Source: Zacks Investment Research
Bottom Line
Walmart still trades below its average Zacks price target. And 80% of the brokerage recommendations Zacks has are “Strong Buys” or “Buys,” with no sell ratings. Walmart’s dividend yields 1.4% vs. its industry’s 1.8%.
Walmart is hardly a flashy stock, but those are always useful in any healthy, diversified portfolio. And let’s remember that even though YoY inflation is coming down, consumers are still feeling the burden of higher costs, which benefits Walmart.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Walmart Earnings: Buy This Surging Blue-Chip Stock Now and Hold?
Walmart ((WMT - Free Report) ) stock hit new highs on Wednesday, with the retail titan up 25% over the last 12 months to crush the S&P 500’s 7%, Amazon’s -3% decline, and Target’s 22% fall.
WMT posted blowout Q1 (FY24) results in May and upped its guidance as more shoppers of all income levels try to save on essentials.
Now let’s see why Walmart, which lands a Zacks Rank #2 (Buy) ahead of its August 17 earnings release, might be a great blue-chip stock to buy for your long-term portfolio.
A Giant Adapts for the Future
Like everyone in retail, Walmart now offers every form of delivery and pick-up possible to make its shopping experience as convenient as ever. WMT’s push to compete against Amazon ((AMZN - Free Report) ) and Target ((TGT - Free Report) ) includes its own subscription service dubbed Walmart+.
Walmart is also focused on partnerships with popular digital native retailers and bringing in more businesses to its third-party marketplace. On top of that, the company is growing its own advertising segment as more customers start their shopping searches on Walmart.com.
Image Source: Zacks Investment Research
The company’s U.S. comps jumped 6.6% last year (up 13% on a two-year stack), while its U.S. e-commerce segment climbed by 12% (23% on a two-year stack). Overall, Walmart has roughly doubled its e-commerce business over the past three years.
Walmart is also crucially continuing to innovate and push forward into new tech-focused and automation frontiers at its warehouses, stores, and beyond to compete alongside Amazon and others over the long haul, with an eye toward increasing profitably as well.
Image Source: Zacks Investment Research
Other Fundamentals
Walmart generated $611 billion in revenue last year (its fiscal 2023) to blow away Amazon’s $514 billion, Apple’s $394 billion, and Exxon Mobil’s $414 billion. WMT posted nearly 7% revenue growth last year to reach that level and continue its impressive run of top-line expansion as it maintains its standing as the one-stop-shopping power.
WMT posted blowout Q1 (FY24) results in May and upped its guidance as more shoppers of all income levels try to save on essentials.
Image Source: Zacks Investment Research
Zacks estimates call for Walmart U.S. to post 3.7% same-store sales growth in FY24. The company's overall revenue is projected to climb roughly 4% higher both this year and next to hit $660.17 billion next year.
Walmart’s adjusted earnings are projected to come in slightly lower this year (-0.95%) but then surge 11% higher next year. And WMT boasts an impressive history of bottom-line beats, including a 12% average beat in the trailing four quarters. And its most recent/most accurate EPS estimates came in above consensus.
WMT stock has climbed 80% over the last five years vs. the S&P 500’s 60%, Target’s 57%, and Amazon’s 45%. Walmart has crushed its rival Target over the last year-plus and climbed to new highs because its core business is far more focused on essentials, which are in vogue again after the covid spending boom ended.
Despite sitting at new highs, Walmart trades at a 9% discount to its own 10-year highs at 24.5X forward 12-month earnings. On top of that, Walmart recently broke above its previous 2022 highs, which could be a bullish signal.
Image Source: Zacks Investment Research
Bottom Line
Walmart still trades below its average Zacks price target. And 80% of the brokerage recommendations Zacks has are “Strong Buys” or “Buys,” with no sell ratings. Walmart’s dividend yields 1.4% vs. its industry’s 1.8%.
Walmart is hardly a flashy stock, but those are always useful in any healthy, diversified portfolio. And let’s remember that even though YoY inflation is coming down, consumers are still feeling the burden of higher costs, which benefits Walmart.