Walmart is a global retail corporation based in the United States that owns tens of thousands of supermarkets and department stores in 25 countries. They are operating with the basic concept of offering more for less has allowed it to become the world’s largest supermarket.
Walmart has been helping consumers save money and live a happier life for years. Our guide will show you how to open a brokerage account and start investing in Walmart stock.
Quick Walmart History
Sam Walton started the company in Rogers, Arkansas in 1962, and it was incorporated on October 31, 1969. Walmart operates 11,443 stores and clubs under 54 distinct names. With over 2 million workers, it is now the world’s biggest private employer. In 1970, Walmart issued common stock to the general public, and in 1972, it started trading on the New York Stock Exchange.
Walmart has remained a profitable stock for consumers while still having sustained success. They have managed to provide a fantastic interactive and traditional retail environment that is accessible to everyone. Walmart has historically always offered some of the best deals, which is why local residents love to help them.
Walmart announced Carrier Pickup, a new program in 2020 that helps shoppers to arrange a return for a product purchased online or in-store. They have also revealed in January 2021 that it is partnering with Ribbit Capital to create a fintech startup that will offer financial services to customers and employees.
The Good and the Bad of Walmart Stock
There are numerous benefits to owning stocks or shares in a publicly traded company. Here are some of the pros and cons of being a Walmart shareholder.
Pros of Owning Walmart Stock
- Well known brand name that offers both stability as well as growth potential in your portfolio
- Walmart has developed a better online shopping experience in order to reach shoppers trapped at home amid the pandemic.
- Walmart’s alliance with Instacart for same-day food delivery has helped the retailer outperform other retailers.
Cons of Owning Walmart Stock
- Competition from stores such as Amazon is a major problem for Walmart, both in retail stores and online grocery purchases. It is overshadowed by the popular ecommerce website Amazon, which is almost 12 times as popular as Walmart.
- Nobody knows which store will be the most successful after the pandemic. Stocks such as Walmart may rise or fall depending on vaccination rates and retail store sales during the remainder of the pandemic.
Outlook for Walmart Stock
Walmart posted a 15.5% increase in adjusted earnings per share over the same period last year. The corporation produced $559.2 billion in sales and earned $4.73 per share last year. Walmart eCommerce rose by 79% in 2020, and the trend is expected to continue this year.
For the last three years Walmart has had gross profits of 3.0%, 2.8%, and 4.0%. In the fourth quarter, Walmart’s e-commerce revenues in the United States increased by 69 percent, with growth across all networks. The e-commerce industry is expected to be strong in Walmart Inc.’s first-quarter fiscal 2022 earnings, which are set to be released on May 18.
Steps to Buy Walmart Stock
To purchase Walmart stock, you must first open a brokerage account, then a trading account, deposit money, and then begin purchasing shares.
Step 1: Select a Brokerage
You must first locate a brokerage in order to purchase Walmart stock. You can purchase shares of Walmart stock through Computershare, with a stock transfer agent, or through any authorized brokerage firm.
Step 2: Open Your Trading Account
Next you’ll need to open an account with the brokerage. This account typically would only be accessible via the brokerage’s website, and it allows you to keep track of your Walmart stock.
Step 3: Deposit Funds Into Your Brokerage Account
After you’ve linked a bank credit/debit card to your account, you’ll be able to deposit funds to purchase Walmart stock.
Step 4: Search for the Walmart Ticker Symbol
A ticker symbol is an abbreviation that is used to distinguish publicly trading shares in a company. Walmart stock is traded on the New York Stock Exchange, under the trading symbol WMT.
Step 5: Purchase Walmart Stock
Now you’d log into your online brokerage account, search for Walmart stock, enter the number of shares you want to buy, and press “Buy.” After you’ve purchased Walmart stock you would keep track of your shares and how they’re doing.
Is Walmart Stock a Good Buy?
Walmart performed much better than many other department stores in the Covid-19 retail landscape. Consumers’ preference for online shopping has grown even more as a result of the pandemic-related social distancing. This has benefited Walmart. The retailer has been able to take advantage of growing online market opportunities. This is thanks to the company’s efforts to improve distribution.
The company has revealed plans to spend $14 billion in capital expenditures this year. In the third quarter of fiscal 2021, the organization also announced a partnership with DoorDash to distribute drugs from Sam’s Club pharmacy. Walmart seems to have a lot of plans in place to increase their revenue in 2021. This might be an excellent stock to invest in. If you have any doubts, or wish to consult a professional, feel free to reach out to a trusted financial advisor today.