We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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.
Can Walmart Turn Healthcare Expansion Into Deeper Engagement?
Read MoreHide Full Article
Key Takeaways
Walmart plans a co-branded Medicare Advantage plan with SCAN Health Plan in Arizona and Texas.
The plan may include pharmacy, vision, food and OTC benefits alongside Walmart technology capabilities.
Health and wellness customers spend about three times more than the average Walmart customer.
Walmart Inc. (WMT - Free Report) continues to strengthen its position through its value proposition, omnichannel convenience and expanding digital ecosystem. The retailer is benefiting from market share gains and momentum across e-commerce, membership, advertising and marketplace. Its stores are also becoming increasingly important fulfillment hubs, helping support faster delivery and broader customer engagement.
In a recent development, Walmart announced a collaboration with SCAN Health Plan to launch a co-branded Medicare Advantage plan in Arizona and Texas. Subject to regulatory review and approval, the offering may incorporate pharmacy and vision services as well as food and over-the-counter benefits, alongside Walmart’s technology capabilities.
The partnership also highlights Walmart’s efforts to extend technology into health and wellness. Its Everyday Health Signals platform delivers personalized nutrition and wellness insights based on users’ stated goals and shopping preferences. Walmart and SCAN plan to make these capabilities available to participating members as part of broader wellness support.
The initiative is notable, given the importance of health and wellness shoppers to Walmart. The company said these customers spend about three times more than the average Walmart customer, while adding pharmacy delivery can lift spending further. Prescription volumes are also growing, with Walmart reporting pharmacy market share gains.
However, the health and wellness category faces near-term sales pressure from pharmacy deflation and regulatory-related pricing changes. Against this backdrop, the SCAN collaboration could broaden Walmart’s healthcare offering and create additional opportunities to deepen customer engagement over time.
What Do the Latest Metrics Say About Walmart?
Walmart, which competes with Costco Wholesale Corporation (COST - Free Report) and Target Corporation (TGT - Free Report) , has seen its shares gain 3.8% over the past year compared with the industry’s 2.9% growth. Shares of Costco have dipped 5.1%, while Target has surged 82.8% in the aforementioned period.
Image Source: Zacks Investment Research
From a valuation standpoint, Walmart's forward 12-month price-to-earnings ratio stands at 34.46, higher than the industry’s 31.55. The company is trading at a premium to Target (with a forward 12-month P/E ratio of 16.21) while trading at a discount to Costco (39.59).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Walmart’s current fiscal-year sales and earnings per share implies year-over-year growth of 5.3% and 8.7%, respectively.
View the Zacks #1 Rank List
Image: Bigstock
Can Walmart Turn Healthcare Expansion Into Deeper Engagement?
Key Takeaways
Walmart Inc. (WMT - Free Report) continues to strengthen its position through its value proposition, omnichannel convenience and expanding digital ecosystem. The retailer is benefiting from market share gains and momentum across e-commerce, membership, advertising and marketplace. Its stores are also becoming increasingly important fulfillment hubs, helping support faster delivery and broader customer engagement.
In a recent development, Walmart announced a collaboration with SCAN Health Plan to launch a co-branded Medicare Advantage plan in Arizona and Texas. Subject to regulatory review and approval, the offering may incorporate pharmacy and vision services as well as food and over-the-counter benefits, alongside Walmart’s technology capabilities.
The partnership also highlights Walmart’s efforts to extend technology into health and wellness. Its Everyday Health Signals platform delivers personalized nutrition and wellness insights based on users’ stated goals and shopping preferences. Walmart and SCAN plan to make these capabilities available to participating members as part of broader wellness support.
The initiative is notable, given the importance of health and wellness shoppers to Walmart. The company said these customers spend about three times more than the average Walmart customer, while adding pharmacy delivery can lift spending further. Prescription volumes are also growing, with Walmart reporting pharmacy market share gains.
However, the health and wellness category faces near-term sales pressure from pharmacy deflation and regulatory-related pricing changes. Against this backdrop, the SCAN collaboration could broaden Walmart’s healthcare offering and create additional opportunities to deepen customer engagement over time.
What Do the Latest Metrics Say About Walmart?
Walmart, which competes with Costco Wholesale Corporation (COST - Free Report) and Target Corporation (TGT - Free Report) , has seen its shares gain 3.8% over the past year compared with the industry’s 2.9% growth. Shares of Costco have dipped 5.1%, while Target has surged 82.8% in the aforementioned period.
Image Source: Zacks Investment Research
From a valuation standpoint, Walmart's forward 12-month price-to-earnings ratio stands at 34.46, higher than the industry’s 31.55. The company is trading at a premium to Target (with a forward 12-month P/E ratio of 16.21) while trading at a discount to Costco (39.59).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Walmart’s current fiscal-year sales and earnings per share implies year-over-year growth of 5.3% and 8.7%, respectively.
Walmart currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.