Walmart has a history of outperforming its rivals, and as the holiday season approaches, investors are optimistic about its sales potential, even in a more discerning consumer environment. The retailer is the largest grocer in the United States, which provides a steady flow of foot traffic to its stores.
In recent years, Walmart has invested in its e-commerce business by expanding its product offerings through its third-party marketplace. It has also found new revenue streams, such as advertising and annual memberships to Walmart+, its answer to Amazon Prime.
Walmart’s stock reached an all-time high, reflecting its strong performance and investor confidence. The stock closed at nearly $170, up approximately 19% for the year.
Target’s recent performance has also contributed to Walmart’s stock gains, and it may bode well for Walmart’s quarterly results. While Target reported a year-over-year decline in sales, it exceeded Wall Street’s expectations for earnings and revenue.
Walmart has outperformed Target over the past year, with a focus on grocery sales and a reputation for offering competitive prices. However, some analysts are cautious about whether Walmart can meet high expectations in its upcoming earnings report.