Walmart Inc Stock Fair Value – Goldman Sachs Predicts Uptrends in WMT and TGT Stock Prices by 2024
December 14, 2023
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Walmart Inc ($NYSE:WMT). is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores. Walmart Inc. also has operations in digital retail, e-commerce, and technology. Recently, Goldman Sachs analysts have predicted that WMT and TGT (Target) stocks may experience an uptrend in 2024. Goldman Sachs explains that this potential uptrend is due to several factors, including the growth of online retailing, the increasing popularity of discount stores, and the general health of the American economy.
Additionally, discount stores are set to become increasingly popular amongst consumers due to their competitive prices and convenient locations. With the US economy slowly gaining strength and growth, it is expected that consumer spending will continue to increase, leading to further growth in WMT and TGT stock prices. With strong economic fundamentals and a growing consumer base, these retail giants are expected to benefit from these trends. As such, investors should keep a close watch on these stocks in the coming years.
Price History
On Tuesday, the stock of WALMART INC (WMT) opened at $151.2 and closed at $151.4, a gain of 0.1%. This positive outlook for WMT and TGT has been a strong source of investor confidence in both companies. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Walmart Inc. More…
| Total Revenues | Net Income | Net Margin |
| 638.78k | 16.29k | 2.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Walmart Inc. More…
| Operations | Investing | Financing |
| 32.16k | -20.13k | -11.64k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Walmart Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 259.17k | 173.36k | 29.52 |
Key Ratios Snapshot
Some of the financial key ratios for Walmart Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 5.2% | 4.2% | 4.0% |
| FCF Margin | ROE | ROA |
| 2.0% | 20.3% | 6.2% |
Analysis – Walmart Inc Stock Fair Value
At GoodWhale, we provide comprehensive financial analysis of public companies. Recently, we have been taking a closer look at WALMART INC. After carefully analyzing their financials and making adjustments to account for risks, our proprietary Valuation Line tells us that the intrinsic value of WALMART INC’s share is around $157.6. As it stands, the stock is trading at $151.4, which makes it a fair price that is undervalued by 3.9%. More…
Peers
The retail industry is highly competitive, with Walmart Inc competing against Target Corp, Sprouts Farmers Market Inc, and Costco Wholesale Corp. All four companies are vying for market share in the retail sector. Walmart Inc is the largest company in the group, followed by Target Corp, Sprouts Farmers Market Inc, and Costco Wholesale Corp. All four companies are publicly traded on the stock exchange.
– Target Corp ($NYSE:TGT)
Target Corp is an American retail corporation. The company was founded in 1902 and is headquartered in Minneapolis, Minnesota. Target operates 1,851 stores across the United States. The company’s store format includes Target, Target Greatland, and SuperTarget. Target is the second-largest discount retailer in the United States, behind Walmart. The company’s revenue for 2018 was $75.4 billion, and its operating income was $5.9 billion. Target’s net income for 2018 was $3.6 billion, and its total assets were $42.5 billion as of December 31, 2018.
– Sprouts Farmers Market Inc ($NASDAQ:SFM)
Sprouts Farmers Market Inc is a grocery store chain that specializes in selling fresh, natural, and organic food. The company has a market capitalization of $3 billion as of 2022 and a return on equity of 21.14%. Sprouts Farmers Market operates more than 340 stores in 22 states across the United States. The company was founded in 2002 and is headquartered in Phoenix, Arizona.
– Costco Wholesale Corp ($NASDAQ:COST)
Costco Wholesale Corporation is the largest membership warehouse club in the United States. As of 2022, it had a market capitalization of 209.47 billion and a return on equity of 24.62%. Costco Wholesale Corporation is a bulk retailer of food, electronics, and other merchandise. It operates through a chain of membership warehouses in the United States and other countries. Costco Wholesale Corporation was founded in 1976 and is headquartered in Issaquah, Washington.
Summary
In recent years, analysts have been predicting that WMT will continue to show positive trends in 2024, thanks to its innovative strategies and resilient business practices. As a large-scale retailer, Walmart has proven to be adept at navigating the changing landscape in retail, having launched successful e-commerce initiatives as well as a range of other cost-saving measures. Furthermore, Walmart has enjoyed improved performance due to its strong sales and growing market share. They can also take advantage of Walmart’s low debt-to-equity ratio and healthy dividend payout, both of which make WMT an attractive prospect for long-term investors.
