#1 - Walmart (NYSE:WMT)
Perhaps no brick-and-mortar retailer has benefited more from the Covid-19 pandemic than Walmart (NYSE:WMT). WMT stock is up over 5%. The sheltering-in-place orders that locked down many Americans was an ideal opportunity for Walmart to put to the test both its curbside pickup option as well as the strength of its digital footprint.
In the fiscal first-quarter (ending April 30), online sales increased 74%. Same-store sales in the United States were up 10%. Walmart’s network of 5,000 physical stores was essential in helping consumers get the supplies they needed to stay at home. But the company also benefited from the consumers who used their $1,200 stimulus check to purchase bigger ticket items like televisions and other electronics.
And Walmart accomplished this in the face of increased inventory costs as well as cash bonuses to workers and a $2 hourly wage increase to warehouse employees. The company pulled its full-year guidance, but that’s not alarming in this environment. As the kids would say, “everyone is doing it.”
A bearish argument is that Walmart was “only” up 5% at a time when it should have had a captive audience. What will happen when consumers are free to buy more than just essential items? The answer is likely to be, they’ll continue to shop at Walmart.
About Walmart
Walmart Inc engages in the operation of retail, wholesale, other units, and eCommerce worldwide. The company operates through three segments: Walmart U.S., Walmart International, and Sam's Club. It operates supercenters, supermarkets, hypermarkets, warehouse clubs, cash and carry stores, and discount stores under Walmart and Walmart Neighborhood Market brands; membership-only warehouse clubs; ecommerce websites, such as walmart.com.mx, walmart.ca, flipkart.com, PhonePe and other sites; and mobile commerce applications.
Read More - Current Price
- $59.87
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 25 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $61.75 (3.1% Upside)
