Walmart's strong sales growth, focus on essentials, and e-commerce success make it a buy

From Nasdaq: 2024-08-27 09:07:19

Walmart’s strong performance and optimistic outlook have made investors view the company as a barometer for the U.S. consumer sentiment. Sales guidance was raised, with net sales expected to increase by up to 4.75% in 2024. The company’s grocery business, accounting for 60% of U.S. revenue, has been a key driver of growth due to rising food prices and increased demand for essentials. Walmart’s e-commerce business is also thriving, with a 22% growth in the U.S.

The company’s focus on necessities like groceries and health products is paying off as consumers prioritize essentials. Walmart’s strong market position in the U.S. retail industry, with over 140 million weekly customers, has helped drive sales for other consumer staples companies like General Mills, Kraft-Heinz, and Clorox. Walmart’s stock price has surged nearly 45% this year, reaching a new record high on Aug. 22. Investors should consider buying WMT stock below $80 as it continues to perform well and is a Dividend Aristocrat.



Read more at Nasdaq: Why Walmart is Still a Buy at 52-Week Highs