The article presents Walmart as a defensive stock because it is the largest U.S. supermarket chain, with more than 5,700 stores including Sam's Club, and one store is within 10 miles of 90% of the population. Its e-commerce sales rose 23% year over year in fiscal second quarter 2027, the 10th consecutive quarter of U.S. e-commerce growth above 20%, while Statista estimates its market share at 9.2% versus Amazon's 40.5%. The stock is up about 12% year to date, and management raised full-year guidance from a 4% growth midpoint to 4.5%. The article highlights Walmart's 53 consecutive years of dividend increases as a source of income during downturns, and says the stock beat the broader market in the 2000 and 2008 crashes.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
Walmartdividendsretaile-commerce
Open a keyword to see other news on the same topic.
Related news
- Walmart's $120 Walmart+ and Sam's Club Plus bundle undercuts Amazon Prime's $139 fee with gas, grocery and more perks
Walmart has launched a bundle of Walmart+ and Sam's Club Plus for $120 a year, below Amazon Prime's $139 annual fee. The package includes free shipping and same-day delivery, $0.10 off per gallon of gas at over 17,000 participating stations, a choice of Paramount+ Essential or Peacock streaming, and Sam's Club benefits such as 2% Sam's Cash back on select purchases. Walmart has about 280 million weekly shoppers, while Sam's Club has some 60 to 65 million paying members. Kinshuk Jerath, a business professor at Columbia University, told Inc. that the bundle makes Sam's Club a stronger competitor to Costco and Walmart a stronger competitor to Amazon. The article notes that Amazon has a broader product range through its many third-party vendors, while Walmart wins in grocery.
- Can Walmart's New Bundled Subscription Beat Amazon?
Walmart is offering a combined Walmart+ and Sam's Club Plus membership for $120 per year, $100 less than the two programs priced separately and $19 less than Amazon Prime's $139. The bundle includes free delivery, 2% Sam's Cash on select purchases, $0.10 off per gallon of gas, and a choice of Peacock or Paramount+, but it is annual-only with no free trial or monthly option. The author says the bundle is unlikely to displace Amazon Prime, but argues Walmart does not need to beat Amazon to benefit, since the offer strengthens its flywheel and advertising business. Shoppers who are members spend roughly four times as much as non-members at Walmart, and the stock, up nearly 6% year to date, trades at about 40 times forward and trailing earnings. E-commerce grew 23% and membership grew 17% in the fiscal 2027 second quarter.
- Investors Are Paying More for Walmart Than Amazon. Here’s Why That Doesn’t Add Up.
Walmart (NASDAQ: WMT) has opened a fulfillment center of more than 900,000 square feet in Stockton, California, using automation and machine learning to cut the order process from 12 steps to five, with about 1,000 employees. As the fifth of its next-generation centers, it will help Walmart reach 95% of the U.S. population with next-day or two-day shipping when combined with its network. U.S. e-commerce sales have grown more than 20% for 10 straight quarters, fast deliveries rose 48% last quarter, and advertising grew 38%. The stock fell 9% after its August report on slow comparable sales and a soft Q3 outlook, with operating income expected to grow 2% to 4%. WMT trades at a forward non-GAAP P/E of 37.48x, about 24% above its 5-year average and above Amazon's roughly 31x, while analysts expect EPS to grow only 9% this fiscal year.
- From Brooklyn to Home Depot, Walmart and Amazon: Mitch Gould's Retail Journey
The article profiles Mitch Gould, a Brooklyn native from a family in manufacturing and distribution, who has spent decades helping consumer brands reach major U.S. retailers. His career includes work with Home Depot, Lowe's, Walmart, Costco, CVS, Walgreens, GNC and Amazon, and with brands such as Rubbermaid, Sunbeam, Igloo and Miracle-Gro. A notable chapter was helping introduce more than 100 sports nutrition brands and products to Amazon's online marketplace with Muscle Foods and Amazon buyers. Gould says that although e-commerce changed how products are discovered and bought, core principles such as product selection, pricing, inventory and understanding customer demand remain the same.
- Should You Buy Walmart Stock Before Nov. 19? History Has a Clear Answer.
Investors were unhappy with Walmart's latest updates, which showed mediocre U.S. comparable sales growth and cautioned that high inflation could disrupt shopping. Walmart reports fiscal third-quarter 2027 earnings (ended Oct. 31) on Nov. 19, and the stock, trading at a P/E ratio of about 45, is currently rising ahead of the report. In the second quarter, U.S. comps rose 2.6%, while total sales grew 5.9% and operating income grew 29%. The author notes that the stock's moves after the last four reports did not follow results consistently, and concludes there is no need to rush into the stock before the report, though long-term investors can feel comfortable investing at any time.
- What Needs To Be True To Buy Walmart Stock Now?
Related markets
Latest news
- Snap shares fall over 10% on third-quarter revenue miss
Snap shares fell more than 10% after parent company Snapchat's third-quarter revenue and daily active users missed analyst expectations. Revenue was $1.72 billion versus $1.73 billion expected per LSEG, and global daily active users were 495 million versus 499 million expected per StreetAccount. Average revenue per user (ARPU) was $3.48, in line with expectations, while revenue rose 14% year over year and net income was $56 million, compared with a $104 million net loss a year earlier. Snap guided fourth-quarter revenue to $1.95 billion to $1.99 billion, with a midpoint above Wall Street's $1.95 billion estimate. The company also said that starting in the first quarter of 2027 it will make global monthly active users its “primary audience metric,” arguing a longer-term horizon better reflects its product and safety decisions.
- Apple Reportedly Tightens the Belt On Employee AI Budgets Amid Cost-Cutting Drive
According to Bloomberg, Apple is tightening employee spending on AI tools by lowering daily usage caps as part of a broader cost-cutting drive. Last month, the daily allowance for select engineers fell from $300 to $200, and the company is reportedly planning deeper cuts that could bring some engineering teams to $100 and non-engineering departments, which mostly already have a $100 limit, to $25. Staff needing higher limits for critical work must seek exemptions from senior management. Apple declined to comment. The move comes as research and development spending rose 32% in fiscal 2026 and operating expenses climbed 22% to $75.5 billion, while CEO John Ternus pushes for a faster, leaner company with fewer management layers.
- Could Buying Bitcoin Today Set You Up For Life?
Bitcoin rose from $1 in February 2011 to over $100,000 by December 2024, but it is now down 38% from its all-time high of $126,000. The article examines price targets: Cathie Wood's $1 million target for 2030 would require 88% annualized growth, and Coinbase CEO Brian Armstrong's $300,000 target would need nearly 40% a year, compared with Bitcoin's 37% compound annual growth over the past decade. JPMorgan Chase suggests Bitcoin might grow at a compound annual rate of 10% over the next decade, or 17% in an ultra-bullish scenario. At 10% annual growth, a $10,000 investment would be worth roughly $25,000 after a decade, which the author argues is not life-changing wealth. The piece concludes that Bitcoin may not be able to carry a portfolio's performance on its own if expectations are too high.
- How Aussie Bitcoiners can avoid 2027’s shock CGT hike: Part 1
Australia's recently announced budget scrapped the 50% capital gains discount for all investments, so from July 1, 2027, gains will be taxed at full income tax rates: 30% on income and gains between A$45,000 and A$135,000, 37% between A$135,000 and A$190,000, and 47% above that. Low-income earners who are not on welfare face a minimum 30% rate, and the only remaining discount covers inflation. In an example of buying Bitcoin for A$10,000 and selling a decade later for A$100,000, the inflation discount is only about A$3,439, so taxable gains rise from A$45,000 under the old system to A$86,561. The article outlines options such as hoping for a strong market rally before July 1, 2027, voting for parties pledging to reverse the changes, or moving holdings into a self-managed super fund (SMSF).
- Dow scores its best day in 18 months in a broad relief rally after Democrats sweep to power in Congress
Stocks surged, oil prices plunged and bond yields fell on Wednesday. The move was attributed to optimism that the Iran war could end sooner now that Democrats have won control of Congress.
- The economy brought Trump back to power. Now it's his downfall
Democrats won control of both the House and Senate in Tuesday's midterm elections, ending the Republican Party's trifecta of power in the federal government as voters focused on the cost of living. The CNBC Voter Poll found nearly nine out of 10 voters said the cost of living was a crucial or major factor, and about two out of three said Trump's policies worsened economic conditions. Gas averaged $4.15 a gallon on election day, the highest for any midterm or presidential election since at least 2000, and prices have surged about 37% over the past year amid the Middle East conflict. Zandi estimated that higher energy costs since the start of the Iran war have cost the average household nearly $1,230, while rising borrowing costs and expanded military services added more than $900. The University of Michigan's consumer sentiment survey fell in 2026 to its worst level in its seven-decade history.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.