Walmart's strong second-quarter results drive stock to record high, boosted by grocery and e-commerce sales

From Nasdaq: 2024-08-24 04:15:00

Walmart’s second-quarter results were strong, leading to a record high in shares and boosting investor confidence in the economy. With revenue reaching $169.3 billion and earnings of $1.67 per share, the company’s growth is primarily driven by grocery and e-commerce sales. Walmart also raised its full-year revenue and earnings guidance.

As Walmart thrives, its competitors like Target and Kroger struggle to keep up due to the retail giant’s unique advantage in inventory management and advertising revenue growth. Walmart’s advertising business saw a 26% increase last quarter, with its digital shopping platform becoming a major draw for brands and third-party sellers. Additionally, Walmart+ memberships grew by double digits, contributing to 23% growth in membership income.

Despite Walmart’s strong competitive position, its stock may be too expensive for investors at over 27 times next year’s expected earnings. While the company is built to thrive in any economic environment, potential investors should weigh the stock’s high price against its historic norm. The Motley Fool Stock Advisor team suggests considering other investment opportunities with higher potential returns.

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Read more at Nasdaq: 3 Reasons Walmart Is a Major Winner Compared to Other Retailers. Time to Buy the Stock?