Why should we embrace Walmart (NYSE:WMT) at $300

As of April 28th, 2020 Walmart Inc. (NYSE:WMT) is trading at 128.00, very close to the 52 week high of 133.38. There’s good reason this stock can reach over $300.00 per share. Walmart Inc. (NYSE:WMT) has a market cap of 363.56B. Walmart Inc. (NYSE:WMT) has paid out a $0.54 dividend per share on 2/18/2020.

Walmart Inc. (NYSE:WMT)’s CEO Doug McMillon has been with Walmart Inc. (NYSE:WMT) since 2014. From 2009 to 2014 he was president and CEO of Walmart Inc. (NYSE:WMT) International. From 2005 to 2009 he served as president and CEO of Sam’s Club. He started out unloading trucks when a teenager getting paid by the hour. He is an excellent example how working hard and being loyal pays off in order to be successful. He is an excellent role model for other employees who desire to rise up within the ranks of the company.

With the onset of the current health pandemic of COVID-19 online shopping has become a lifeline for consumers. While the current state of the economy and people out of work, consumers are looking for rock bottom pricing for products that can be shipped to their homes.

Besides Walmart Inc. (NYSE:WMT) in the U.S., Walmart Inc. (NYSE:WMT) operates internationally. Walmart Inc. (NYSE:WMT) also owns Sam’s Club that is a competitor to Costco. Walmart Inc. (NYSE:WMT)’s lower valuation and higher dividend make it a safer stock in an unstable market.

Walmart Inc. (NYSE:WMT) trades at 23 times forward earnings and pays a forward dividend yield of 1.9%. Dividends have increased annually for 45 straight years. Costco has a higher forward P/E of 38 but pays a lower forward yield of 0.9%. with an increased dividend annually for 16 straight years. Walmart Inc. (NYSE:WMT)’s price-to-earnings ratio is only 15.69% versus Costco’s 29.87%.

Walmart Inc. (NYSE:WMT) is a behemoth operating not only as a grocery store and also as a pharmacy. There is not a consumer staple product that Walmart Inc. (NYSE:WMT) does not sell. Walmart Inc. (NYSE:WMT) also offers financial services such as check cashing, wire transfers, and bill payments.

It’s pretty evident that the stock market and economy will be on edge for many months to come due to COVID-19. Walmart Inc. (NYSE:WMT) has been hiring many workers due to increased demand due to the pandemic. The stock has shown resiliency during this time. Walmart has plenty of cash from operations to manage their near-term interest expenses.

 

Our Top Stock besides Walmart are  Groupon (NASDAQ:GRPN) with a potential upside $8 – $20 by end of the year with strong holiday sales and retail spending. Another company we like is Google Alphabet ( NASDAQ:GOOGL ) with an upside of $2000 and Apple ( NASDQ:AAPL ) with upside of $1000.

 

 

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