The value of Walmart shares is currently showing the most intense annual growth in the last two decades.
The mentioned upward dynamic is because low prices for everyday essentials in the Walmart corporate space generate a competitive advantage for this e-commerce giant. The specified advantage lies in the fact that currently, the company’s competitors are facing weak demand from consumers, for whom the main guideline in the context of their financial behavior is saving.
Since the beginning of the current year, the value of Walmart shares has increased by about 60%. It is worth noting that this intensity indicator exceeds roughly 13% in the S&P 500 Consumer Staples sector index and a 21% rise in the S&P 500 Consumer Discretionary index.
The value of shares of rival Target has increased by about 7% since the beginning of the current year. The benchmark S&P 500 has risen 23%.
It is worth mentioning that in 1998 Walmart securities rose in price by 106%. At that time, the company expanded its supercenter store format and strengthened its presence in Canada and Mexico.
Brian Mulberry, client portfolio manager at Zacks Investment Management, said that a combination of factors such as organic growth, strong balance sheet, and low debt levels are shaping the popularity of Walmart shares now.
On Tuesday, November 19, the e-commerce giant will publish information on its financial results for the third quarter of the current year. LSEG’s preliminary estimates provide for Walmart’s revenue growth of about 4% over the mentioned period.
As we have reported earlier, Walmart Sells JD.com Shares.
