Stock Performance - Walmart's stock has surged 76.4% year-to-date in 2024, outperforming the industry's 72.8% growth, the Zacks Retail – Wholesale sector's 30.5% growth, and the S&P 500's 27.7% increase [1][15] - The stock currently trades at 92.68,3.696.18 and 78.7% above its 52-week low of 51.87[15]−WMTtradesaboveits50and200−daymovingaverages,indicatingstrongupwardmomentumandpricestability[16]E−commerceandOmnichannelStrategy−Walmart′sglobalonlinesalesgrew272.42-2.47,upfrom2.22 in FY2024 [20] - Q4 projections indicate a deceleration, with constant-currency sales growth of 3%-4% and operating income growth of 5%-7.5%, compared to Q3 growth rates of 6.2% and 9.8%, respectively [13] Challenges and Risks - Margin pressures are emerging due to shifts in the product mix, particularly the growth of GLP-1 drug sales in the health and wellness segment [12] - SG&A expenses have risen due to incentive payments for frontline associates and increased marketing investments [24] - Inflation in consumables and food sectors, along with currency fluctuations, continue to threaten margins [24] Valuation - Walmart's forward 12-month P/E ratio stands at 34.2, above the industry average of 31.26, suggesting a premium valuation [22] - The company holds a Value Score of C, indicating caution regarding its pricing [12] International Operations - Walmart's international operations in key regions like Mexico (Walmex), India (Flipkart and PhonePe), and China play a pivotal role in its long-term growth strategy [19]
Walmart(WMT) ZACKS·2024-12-26 14:06