Stock of the week: “Walmart Inc”
Published on the 17th of May 2023
Walmart, Inc. is a retail and wholesale company known for offering an assortment of merchandise and services at everyday low prices.
The company reported a strong fourth quarter (fiscal year February 1 2022 - January 31 2023), but cautious forecasts for next year raised concerns. In fact, the company recorded sales growth of $38 billion worldwide on the last report, crossing the $600 billion mark in revenue for the first time. However, the company believes consumers are becoming more selective and making informed purchases due to inflationary pressures.
Amazon, its main competitor, has been making strides in the grocery business, but its market share remains small compared to Walmart, and its current share stands at just over 3% of the US grocery market, including its branded stores and Whole Foods.
In contrast, Walmart leads with a 30% market share, while Kroger holds 11%. Although Amazon is the leader in the online market, Walmart leads the way as an established player in the industry. With these projections painting such bright prospects for consumers of customarily lower-priced goods or those with limited resources — it seems Walmart has solidified its position once again in the market.
Professional social media sentiment is “neutral” in both absolute and relative terms, on its own and when compared to the social media sentiment of the sector and stock index.
Analyst consensus is to "buy" the stock - out of the 40 bank analysts covering the company, 31 recommend buying the stock, and 9 suggest holding it. The median upside potential of the stock price these analysts expect over the next 6-12 months is currently 10.2% (reference close of business 16/05/2023).
Attention buzz is currently “low”.
https://beststocks.com/walmart-a-retail-giants-success-despite-market-v/
Why Amazon Isn’t Checking Out of Groceries - WSJ
Target and Walmart Clash Over Earnings. Who Will Win and Why. - MarketWatch
https://corporate.walmart.com/media-library/document/q4-fy23-investment-community-call-transcript/_proxyDocument?id=00000186-762b-d990-abc6-776bd6b40000
