Replies to post #1739 on Walmart Inc (WMT)

[slimhere]

They have Walmart Prime, Instacart is nothing Walmart wants, however, Instacart will go to Walmart for you if you so desire. On another note:

Walmart Stock Soared in 2020. Here's Why It Still Looks Like a Buy. -- Barrons.com
10:21 am ET December 21, 2020 (Dow Jones) Print

By Teresa Rivas

Walmart stock is edging higher early Monday, following an upgrade from RBC Capital Markets that says pandemic-related winners -- of which the retail giant is a prime example -- can keep rallying in the new year.

Analyst Scot Ciccarelli boosted his rating on Walmart (ticker: WMT) stock to Outperform from Sector Perform, and raised his price target to $170 from $153. He acknowledges that he is late in the move -- shares have soared more than 20% in 2020 -- but writes that nonetheless "Walmart has materially enhanced its competitive positioning."

Walmart has continued to grow earnings before interest and taxes six of the last seven quarters, he notes, and the company's "massive e-commerce growth has likely generated a step-function change in that channel's profitability profile." Or put another way, digital could soon become a permanent, more important contributor to Walmart's bottom line.

Ultimately, while going bullish on Walmart stock now may seem late, Ciccarelli argues that the shares combine offensive and defensive characteristics that will continue to drive further stock gains in 2021 and beyond.

The move was part of his larger look at the retail sector, which he believes will continue to experience many of the same trends and consumer behaviors in 2021 that so dominated 2020. Even with widespread coronavirus vaccination likely coming at some point next year, he argues that the "stickiness of consumer behavior," along with share gains for retail giants will continue to serve the stocks well.

Moreover, reduced capacity in the service industry may hamper a rebound there -- especially if there is another mutation, or vaccination isn't done as rapidly as hoped -- that will leave more money to be spent on goods instead of services.

That leads him to stay bullish on his "stronger-for-longer plays," including Home Depot (HD), Lowe's (LOW), and Tractor Supply (TSCO): While difficult comparisons could hamper the stocks in the near term, he thinks these companies will be able to surprise on the upside, which could bolster the shares.

Walmart stock is up 0.4% to $146.53 in recent trading.

Write to Teresa Rivas at [e-mail]