Walmart Inc. (NYSE: WMT), which reported a strong third-quarter, has risen to record heights this morning as US consumers remain resilient heading into holiday season.
Scott Mushkin, of R5 Capital, continues to see more upside in WMT. It’s “taking a huge amount of share”, which helped drive its US comparable-stores sales up by a better than expected 5.3% in Q3.
Walmart stock pays a current dividend yield of 0.95 percent, which is another reason to hold it long-term.
Is Walmart stock worth $88 or less?
Scott Mushkin agrees that Walmart stock was expensive in comparison to its peers.
He reiterated that the retail name was a “top choice” because it could unlock additional upside as margins continue expanding moving forward.
In an interview with CNBC today, he said that the company has room to increase its margins.
WMT increased its consolidated gross profit margin rate by 21 basis point in the recently completed quarter.
Advertising is also proving to be very lucrative for this multinational. Revenues from this segment were up 28% year-over-year in the third quarter.
The continued growth in global ecommerce sales suggests that it is now on the same trajectory as Amazon, and could therefore command a premium multi-fold moving forward.
BMO sees WMT shares rising to $100
Analysts at BMO Capital also remain bullish on Walmart for similar reasons.
The investment firm raised its price target from $80 to $100, which is a 14% increase.
BMO is convinced that its omnichannel investments from the past decade have only just begun to pay off.
Analysts believe that WMT’s share gains across all income groups could lead to further growth.
Walmart is currently beta-testing a shopping assistant powered by artificial intelligence, which will allow it to also benefit from the artificial-intelligence-related tailwinds.
Walmart stock gains as a result of raised future guidance
Walmart executives are optimistic about the future of the company.
The company raised its full-year guidance today from $2.43 per share (adjusted earnings) to $2.47 by 2024.
WMT expects its net sales this year to increase by at least 4.8% compared to the 3.75% that it had previously guided for. Dough McMillon, the Walmart CEO, told investors today in a release:
We had another strong quarter and are continuing our momentum. Our teams are executing, and delighting customers and members by providing the value and convenience that they expect from Walmart.
Walmart shares are up by close to 65% since the beginning of 2024.
This post Is it to late to invest in Walmart Stock as it hits record highs? Here’s what the experts say. This may change as new information is released.
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