Walmart stock up 72% in 2024, attributed to long-term investments paying off.

From Nasdaq: 2024-11-27 04:30:00

Earlier this month, Nvidia was added to the Dow Jones Industrial Average, nearly tripling in value this year. Walmart (NYSE: WMT) is the best-performing Dow stock, with a 72.1% gain compared to 17.5% for the index. Walmart’s breakout year is attributed to long-term investments paying off.

Walmart introduced Walmart+ in 2020, a contactless home delivery service leveraging its stores. Income from Walmart+ grew double digits, with global e-commerce sales up 27%. Walmart Connect offers sellers ad solutions, contributing to Walmart’s strong performance in recent quarters.

Walmart’s U.S. comparable sales were up 5.3%, with e-commerce alone contributing over half of the growth. For the fiscal year, Walmart expects 4.8-5.1% sales increase and adjusted EPS of $2.42 to $2.47. Walmart has been investing heavily in capex for growth.

CEO Doug McMillon stated that Walmart’s capital allocation strategy is appropriately aggressive. Walmart’s stock is considered a growth stock with some concerns about its low dividend yield and high valuation. Walmart remains a strong performer in a challenging retail environment.

While Walmart’s stock is expensive, its impressive results and strategic investments make it worth considering. Walmart’s strong supply chain and distribution network position it well for market share gains. Despite its high valuation, Walmart remains a solid investment option for long-term growth.



Read more at Nasdaq: Walmart Is Up 72% in 2024, but Is the Dow Dividend Stock a Buy at an All-Time High?