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 Gains from E-Commerce Growth, Hits 52-Week High
Read MoreHide Full Article
Walmart Inc. (WMT - Free Report) has been a preferred pick for investors, courtesy of the retail behemoths constant endeavors to sharpen omnichannel capabilities. This is evident from the company’s series of efforts, ranging from prudent alliances to perk up e-commerce offerings, delivery services and payment channels. Also, it is making efforts to improve the International unit.
Backed by such upsides, shares of this Bentonville, AR-based company have rallied nearly 19% in past six months, outperforming the industry’s growth of 14.5%. In fact, this Zacks Rank #2 (Buy) stock touched a 52-week high of $112.93, before closing the session a tad lower at $112.72 on Jul 8.
Factors Narrating Walmart's Growth Story
Walmart has been taking several e-commerce initiatives, including buyouts and alliances. To this end, the company’s strategic partnership with Microsoft (MSFT - Free Report) ; buyouts of ShoeBuy, Moosejaw, Bonobos, ModCloth and Jet.com; and deal with Lord and Taylor, among others, underscore its intention to build an impressive digital brand portfolio.
Also, the company’s plans to improve its website, enhance check-out process, and focus on Walmart2World money transfer service along with Walmart Pay mobile payment system and Mobile Express Returns program highlight its initiatives to accelerate online business and make shopping easier. Apart from this, it is making aggressive efforts to expand in the booming online grocery space, which has long been a major contributor to e-commerce sales.
Backed by such endeavors, U.S. e-commerce sales surged 37% in the first quarter of fiscal 2020. E-commerce sales improved on the back of strength in online grocery, and solid sales in the Home and Fashion categories on Walmart.com. These factors keep management optimistic about achieving 35% U.S. e-commerce sales growth in fiscal 2020.
Walmart remains committed to enrich consumers’ experiences by providing easy shopping methods and seamless grocery deliveries. The company’s contract with Point Pickup, Skipcart, AxleHire and Roadie; deal with Postmates, and buyout of Parcel highlight its focus on enhancing grocery sales. Further, its Walmart Pickup program enables customers to place orders online and pick them up at a store for free.
While consumers’ digital dependency is a boon for e-commerce, Walmart is utilizing this trend to perk up brick-and-mortar sales. In fact, physical stores have become a key link to drive online shopping, courtesy of strategies like in-store pickups. Notably, grocery pickups can be now availed at about 2,450 locations, with same-day delivery available in roughly 1,000 locations.
Moreover, the company expects roughly 3,100 grocery pickup locations and about 1,600 grocery delivery locations by the end of fiscal 2020. It also partnered with ride hailing services, Uber (UBER - Free Report) and Lyft, for speedy online grocery deliveries, and tested same-day delivery with Deliv. We believe that these actions will help Walmart offer multiple choices to online grocery shoppers amid increasing competition from Amazon (AMZN - Free Report) .
Additionally, the company remains committed toward achieving growth across all its markets, on the back of its fresh products, expansion of online grocery and private brands. Walmart is likely to gain from its steps to improve the international business unit. To this end, the company is making continued efforts to shift focus from underperforming areas to profitable regions like India and China.
This is clear from its sale of 80% of its stake in the underperforming Brazilian business. Also, Walmart’s buyout of major stake in Flipkart is helping the former expand its presence in India. Markedly, Walmart International net sales are expected to grow approximately 5% at constant currency in fiscal 2020.
We expect all aforementioned factors to continue bolstering the company’s performance, and help it sustain momentum.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Walmart Gains from E-Commerce Growth, Hits 52-Week High
Walmart Inc. (WMT - Free Report) has been a preferred pick for investors, courtesy of the retail behemoths constant endeavors to sharpen omnichannel capabilities. This is evident from the company’s series of efforts, ranging from prudent alliances to perk up e-commerce offerings, delivery services and payment channels. Also, it is making efforts to improve the International unit.
Backed by such upsides, shares of this Bentonville, AR-based company have rallied nearly 19% in past six months, outperforming the industry’s growth of 14.5%. In fact, this Zacks Rank #2 (Buy) stock touched a 52-week high of $112.93, before closing the session a tad lower at $112.72 on Jul 8.
Factors Narrating Walmart's Growth Story
Walmart has been taking several e-commerce initiatives, including buyouts and alliances. To this end, the company’s strategic partnership with Microsoft (MSFT - Free Report) ; buyouts of ShoeBuy, Moosejaw, Bonobos, ModCloth and Jet.com; and deal with Lord and Taylor, among others, underscore its intention to build an impressive digital brand portfolio.
Also, the company’s plans to improve its website, enhance check-out process, and focus on Walmart2World money transfer service along with Walmart Pay mobile payment system and Mobile Express Returns program highlight its initiatives to accelerate online business and make shopping easier. Apart from this, it is making aggressive efforts to expand in the booming online grocery space, which has long been a major contributor to e-commerce sales.
Backed by such endeavors, U.S. e-commerce sales surged 37% in the first quarter of fiscal 2020. E-commerce sales improved on the back of strength in online grocery, and solid sales in the Home and Fashion categories on Walmart.com. These factors keep management optimistic about achieving 35% U.S. e-commerce sales growth in fiscal 2020.
Walmart remains committed to enrich consumers’ experiences by providing easy shopping methods and seamless grocery deliveries. The company’s contract with Point Pickup, Skipcart, AxleHire and Roadie; deal with Postmates, and buyout of Parcel highlight its focus on enhancing grocery sales. Further, its Walmart Pickup program enables customers to place orders online and pick them up at a store for free.
While consumers’ digital dependency is a boon for e-commerce, Walmart is utilizing this trend to perk up brick-and-mortar sales. In fact, physical stores have become a key link to drive online shopping, courtesy of strategies like in-store pickups. Notably, grocery pickups can be now availed at about 2,450 locations, with same-day delivery available in roughly 1,000 locations.
Moreover, the company expects roughly 3,100 grocery pickup locations and about 1,600 grocery delivery locations by the end of fiscal 2020. It also partnered with ride hailing services, Uber (UBER - Free Report) and Lyft, for speedy online grocery deliveries, and tested same-day delivery with Deliv. We believe that these actions will help Walmart offer multiple choices to online grocery shoppers amid increasing competition from Amazon (AMZN - Free Report) .
Additionally, the company remains committed toward achieving growth across all its markets, on the back of its fresh products, expansion of online grocery and private brands. Walmart is likely to gain from its steps to improve the international business unit. To this end, the company is making continued efforts to shift focus from underperforming areas to profitable regions like India and China.
This is clear from its sale of 80% of its stake in the underperforming Brazilian business. Also, Walmart’s buyout of major stake in Flipkart is helping the former expand its presence in India. Markedly, Walmart International net sales are expected to grow approximately 5% at constant currency in fiscal 2020.
We expect all aforementioned factors to continue bolstering the company’s performance, and help it sustain momentum.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>