Key points
- Walmart is the largest grocer, importer and employer in the United States, with sales exceeding half a trillion dollars in 2023.
- Walmart began trading at a 3-to-1 ratio on February 26, 2024.
- Walmart announced the acquisition of smart TV maker Vizio to boost its advertising business through the SmartCast operating system, which has 18 million accounts.
- 5 stocks we like better than Walmart
Walmart Inc. NYSE:WMT is a retail giant with more than 10,600 stores worldwide in more than 27 countries, welcoming nearly 255 million customers per week. Walmart is the world’s largest employer, with 2.1 million workers worldwide. It’s the biggest consumer discretionary sector company and the largest employer in the United States, with 1.6 million employees. Walmart is the largest grocery store chain in the United States, followed by Costco Wholesaler Co. NASDAQ: COST And Kroger Co. NYSE:KR. It is also the country’s largest importer, enjoying the benefits of a strong dollar. The stock peaked in the $180s before a 3-for-1 split took place on February 26, 2024. Now that the shares are a third of what they were before February 26, 2024, it Now is the right time to enter the market. Walmart stock?
The giant continues to grow
Despite Walmart’s unprecedented size, sales continue to grow year over year, reaching half a trillion dollars in 2023. In the fourth quarter of fiscal 2024, Walmart generated EPS of $1.80 to 1 $.64, an increase of 10%. Revenue rose 5.7% year-over-year to $173.4 billion from $170.85 billion. Consolidated gross margin is expected to increase by 39 basis points due to improvement in Walmart’s global e-commerce sales in the United States, up 23% year-over-year. U.S. non-fuel comps increased 3.9%. Its annual cash dividend was increased by 9% to 83 cents per share after the stock split or $2.49 per share before the split.
Raise the bar
Walmart forecasts first-quarter fiscal 2025 EPS of $1.46 to $1.56, compared to analysts’ consensus estimates of $1.60. Revenue for the first quarter of 2024 is expected to grow 4-5% year-over-year to $158-160 billion from $157.27 billion. FY2025 EPS is expected to be between $6.70 and $7.12, compared to consensus estimates of $7.06. Fiscal 2025 revenue is expected to grow 3% to 4% from the previous year, to $667.6 billion to $674.1 billion, up from $666.93 billion.
International growth
Walmart noted that higher transaction counts and unit volume led to market share gains in the U.S. and internationally. Walmart surpassed more than $100 billion in international sales in 2023. During the 2023 calendar year holiday season, Walmart recorded two days of record volume before Christmas. In-store delivery sales increased 50% year-over-year. High-income households contributed to the share of gains with delivery as a source. Sam’s Club member warehouses reported sales growth of 3.1%, excluding fuel, with strength in the consumables, health and food categories.
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Consumers remain resilient
Despite economic uncertainty, Walmart continues to see some resilience from its customers, who find value in clothing and hardlines. Prices are lower year over year for food items such as apples, eggs and deli snacks, but higher for asparagus and blackberries. It is private label penetration, like Target Co. NYSE:TGT, is increasing sharply in many countries. Walmart plans to renovate 928 stores and clubs worldwide over the next year, including 650 in the United States.
Doug McMillon, CEO of Walmart, commented: “Our team delivered a great quarter, capping a strong year. We surpassed $100 billion in online sales and generated market share gains as our customer experience metrics improved, even during our highest volume days leading up to the holidays. We are proud of the team and excited to continue our momentum as we work to lower prices for our customers and members. »
Acquisition of VIZIO announced
In an unexpected move, Walmart announced the acquisition of the smart TV maker VIZIO Holding Co. NYSE:VZIO. Walmart will acquire its proprietary SmartCast operating system (O/S) and 18 million active accounts. Walmart will pay $11.50 per share in cash, or $2.3 billion in an all-cash deal. This movement further Collapsed streaming OS and smart TV manufacturer Roku Inc. NASDAQ:ROKU. Walmart’s massive distribution channel can breathe new life into Vizio’s sales and help boost Walmart’s high-margin advertising business with its SmartCast operating system, which allows users to stream TV content that supports The advertisement. Walmart’s advertising business grew 33%, 22% of which was driven by Walmart Connect in the fourth quarter of fiscal 2024.
Walmart Analyst Ratings and Price Targets are at MarketBeat. Walmart’s peers and competitor stocks can be found with the MarketBeat Stock Screener.
Daily Ascending Wedge
The daily candlestick chart for WMT illustrates the rising wedge pattern. This pattern is typically a reversal pattern as the channel of higher highs and higher lows tightens until stocks trigger a strong pullback. Daily life relative strength index (RSI) begins to fall back below the overbought band of 70. Pullback support levels are $58.00, $56.25, $53.29, and $50.52.
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