We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Walmart's (WMT) Drone Deliveries Likely to Accelerate Growth
Read MoreHide Full Article
Walmart Inc. (WMT - Free Report) has been committed to enhancing its delivery services to make the most of the growing online shopping trend. The omnichannel retailer recently unveiled that it completed its expansion agenda for 2022. Walmart (along with its vendors) now operates 36 drone delivery centers across Arizona, Arkansas, North Carolina, Texas, Utah, Virginia and Florida.
The company stated that it has conducted more than 6,000 deliveries to customers within 30 minutes over the past year and remains encouraged about making progress in 2023. Presently, about 85% of items in a Walmart Neighborhood Market qualify for the drone delivery criteria in terms of weight and volume.
All said, Walmart is set to provide drone delivery services to more customers in the years to come due to the positive response. Shares of this Zacks Rank #2 (Buy) company have rallied 17% in the past six months compared with the industry’s rise of 14.7%.
Image Source: Zacks Investment Research
Delivery Enhancement Boosts Sales
Walmart has long been undertaking efforts to strengthen its delivery capabilities, which have been helping it boost e-commerce sales. We note that as of the third quarter of fiscal 2023, Walmart U.S. had 4,600 pickup locations and more than 3,900 same-day delivery stores.
U.S. e-commerce sales rose 16% in the third quarter and increased 24% on a two-year stack basis. The company is witnessing rapid growth in advertising income. At Sam’s Club, e-commerce sales jumped 20% due to a robust direct-to-home show and a solid curbside performance. In the International segment, e-commerce sales advanced by 17%.
Walmart’s e-commerce business and omnichannel penetration have been increasing, all the more amid the pandemic-led social distancing. From the fiscal 2021 beginning to the fiscal 2022 end, the company’s digital sales as a percentage of sales increased from 6% to 13%. Walmart has been taking several e-commerce initiatives, including buyouts, alliances, and improved delivery and payment systems.
WMT has taken robust strides to strengthen its delivery arm. These include its expansion of the InHome delivery service, investments in DroneUp, a pilot with HomeValet, the introduction of Carrier Pickup by FedEx, the launch of the Walmart+ membership program, drone delivery pilots in the United States with Flytrex and Zipline and a pilot with Cruise to test grocery delivery through self-driven all-electric cars.
Prior to the abovementioned activities, Walmart unveiled Express Delivery and joined forces with Point Pickup, Roadie and Postmates alongside acquiring Parcel to enhance its delivery service.
The abovementioned upsides paint a bright picture of Walmart’s growth story. Markedly, Walmart expects consolidated net sales growth of nearly 5.5% for fiscal 2023. Excluding divestitures, the metric is likely to grow roughly 6.5%.
Other Solid Retail Bets
Some other top-ranked stocks from the Retail-Wholesale sector are Dillard's, Inc. (DDS - Free Report) , The Kroger Co. (KR - Free Report) and Ross Stores Inc. (ROST - Free Report) .
Dillard's, a departmental store retailer, sports a Zacks Rank of 1 (Strong Buy) at present. DDS has a trailing four-quarter earnings surprise of 144.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Dillard's’ current-year sales and EPS suggests growth of 6.2% and 4.5%, respectively, from the year-ago period’s reported numbers.
The Kroger Co., a renowned departmental store retailer, presently carries a Zacks Rank #2. KR has a trailing four-quarter earnings surprise of 13.4%, on average.
The Zacks Consensus Estimate for The Kroger Co.’s current-year sales and EPS suggests growth of 7.5% and 12.2%, respectively, from the year-ago period’s reported numbers.
Ross Stores, an off-price retailer of apparel and home accessories in the United States, currently holds a Zacks Rank #2. ROST has an expected EPS growth rate of 10.5% for three to five years.
The Zacks Consensus Estimate for Ross Stores’ current-year sales and EPS suggests declines of 1.6% and 11.7%, respectively, from the year-ago period’s reported figures. ROST has a trailing four-quarter earnings surprise of 10.5%, on average.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Walmart's (WMT) Drone Deliveries Likely to Accelerate Growth
Walmart Inc. (WMT - Free Report) has been committed to enhancing its delivery services to make the most of the growing online shopping trend. The omnichannel retailer recently unveiled that it completed its expansion agenda for 2022. Walmart (along with its vendors) now operates 36 drone delivery centers across Arizona, Arkansas, North Carolina, Texas, Utah, Virginia and Florida.
The company stated that it has conducted more than 6,000 deliveries to customers within 30 minutes over the past year and remains encouraged about making progress in 2023. Presently, about 85% of items in a Walmart Neighborhood Market qualify for the drone delivery criteria in terms of weight and volume.
All said, Walmart is set to provide drone delivery services to more customers in the years to come due to the positive response. Shares of this Zacks Rank #2 (Buy) company have rallied 17% in the past six months compared with the industry’s rise of 14.7%.
Image Source: Zacks Investment Research
Delivery Enhancement Boosts Sales
Walmart has long been undertaking efforts to strengthen its delivery capabilities, which have been helping it boost e-commerce sales. We note that as of the third quarter of fiscal 2023, Walmart U.S. had 4,600 pickup locations and more than 3,900 same-day delivery stores.
U.S. e-commerce sales rose 16% in the third quarter and increased 24% on a two-year stack basis. The company is witnessing rapid growth in advertising income. At Sam’s Club, e-commerce sales jumped 20% due to a robust direct-to-home show and a solid curbside performance. In the International segment, e-commerce sales advanced by 17%.
Walmart’s e-commerce business and omnichannel penetration have been increasing, all the more amid the pandemic-led social distancing. From the fiscal 2021 beginning to the fiscal 2022 end, the company’s digital sales as a percentage of sales increased from 6% to 13%. Walmart has been taking several e-commerce initiatives, including buyouts, alliances, and improved delivery and payment systems.
WMT has taken robust strides to strengthen its delivery arm. These include its expansion of the InHome delivery service, investments in DroneUp, a pilot with HomeValet, the introduction of Carrier Pickup by FedEx, the launch of the Walmart+ membership program, drone delivery pilots in the United States with Flytrex and Zipline and a pilot with Cruise to test grocery delivery through self-driven all-electric cars.
Prior to the abovementioned activities, Walmart unveiled Express Delivery and joined forces with Point Pickup, Roadie and Postmates alongside acquiring Parcel to enhance its delivery service.
The abovementioned upsides paint a bright picture of Walmart’s growth story. Markedly, Walmart expects consolidated net sales growth of nearly 5.5% for fiscal 2023. Excluding divestitures, the metric is likely to grow roughly 6.5%.
Other Solid Retail Bets
Some other top-ranked stocks from the Retail-Wholesale sector are Dillard's, Inc. (DDS - Free Report) , The Kroger Co. (KR - Free Report) and Ross Stores Inc. (ROST - Free Report) .
Dillard's, a departmental store retailer, sports a Zacks Rank of 1 (Strong Buy) at present. DDS has a trailing four-quarter earnings surprise of 144.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Dillard's’ current-year sales and EPS suggests growth of 6.2% and 4.5%, respectively, from the year-ago period’s reported numbers.
The Kroger Co., a renowned departmental store retailer, presently carries a Zacks Rank #2. KR has a trailing four-quarter earnings surprise of 13.4%, on average.
The Zacks Consensus Estimate for The Kroger Co.’s current-year sales and EPS suggests growth of 7.5% and 12.2%, respectively, from the year-ago period’s reported numbers.
Ross Stores, an off-price retailer of apparel and home accessories in the United States, currently holds a Zacks Rank #2. ROST has an expected EPS growth rate of 10.5% for three to five years.
The Zacks Consensus Estimate for Ross Stores’ current-year sales and EPS suggests declines of 1.6% and 11.7%, respectively, from the year-ago period’s reported figures. ROST has a trailing four-quarter earnings surprise of 10.5%, on average.