Is Walmart a blue-chip company?
Walmart is truly a blue chip stock, but investors can't buy the stock at any price. The stock doesn't make sense at its current valuation, and investors are likely in for some pain if the market begins backing off the premium valuation shares are enjoying today.
WMT is a #3 (Hold) on the Zacks Rank, with a VGM Score of A. Additionally, the company could be a top pick for growth investors. WMT has a Growth Style Score of A, forecasting year-over-year earnings growth of 6.3% for the current fiscal year.
Large market capitalization. Market cap is a measure of the size and value of a company. Blue-chip stocks are often large-cap stocks, which typically means they have a market valuation of $10 billion or more. Growth history. Blue-chips have a reliable, solid history of sustained growth and good future prospects.
"Blue chip" is an informal term for the most reliable and valuable companies on the market. These are usually companies with a long track record of financial stability. They are usually leaders within their industry.
An investment of $1,000 at the start of 1980 would be worth over $1.9 million today. Watch Walmart stock trade in real time here.
The highest analyst price target is $75.99 ,the lowest forecast is $58.99. The average price target represents 8.32% Increase from the current price of $60.68. Walmart's analyst rating consensus is a Strong Buy. This is based on the ratings of 28 Wall Streets Analysts.
| Company | Market Cap (Rs. cr) | P/B Value |
|---|---|---|
| Wipro | 249,400 crores | 3.51 |
| Bajaj Auto | 215,100 crores | 7.34 |
| Adani Ports & Special Economic Zone | 247,700 crores | 5.09 |
| ITC Limited | 568,600 crores | 8.23 |
| Stock (ticker) | Market Capitalization |
|---|---|
| Johnson & Johnson (JNJ) | $378 billion |
| Procter & Gamble Co. (PG) | $377 billion |
| AbbVie Inc. (ABBV) | $320 billion |
| Coca-Cola Co. (KO) | $256 billion |
- returns can be on the low side. While blue chips typically deliver reliable returns, this shouldn't be confused with high returns. ...
- they're usually expensive. If you want to add a big-name, established company to your portfolio it'll cost you. ...
- they aren't risk-free.
| Stock | Implied upside* |
|---|---|
| Amazon.com Inc. (AMZN) | 7.8% |
| Meta Platforms Inc. (META) | 16% |
| Eli Lilly and Co. (LLY) | 17.9% |
| Broadcom Inc. (AVGO) | 22.1% |
What are the most profitable stocks to invest in?
| Company | Performance (Year) |
|---|---|
| NRG Energy Inc. (NRG) | 107.45% |
| Builders Firstsource Inc (BLDR) | 99.39% |
| Broadcom Inc (AVGO) | 98.84% |
| GE Aerospace (GE) | 96.46% |
Investing $1,000 In Walmart IPO: Walmart offered shares for $16.50 on Oct. 1, 1970 for its IPO. A $1,000 investment could have purchased 60.61 shares of Walmart stock.
Apple, Berkshire Hathaway, Coca-Cola, Johnson & Johnson, and American Express are all blue chip stocks with operations primarily based in the U.S. Abbvie, Nike, Lockheed Martin, Honeywell, Northrop Grumman, and Procter & Gamble are additional examples of blue chip companies headquartered in the country.
The building's in a blue-chip city-fringe location. United may have to sell one of their blue-chip players. Analysts say investors should start looking outside the safe haven of blue-chip gold stocks. Certain investors favor small-capitalization stocks, while others prefer large blue-chip stocks.
| premium | superior |
|---|---|
| stellar | sterling |
| superb | valuable |
| best | capital |
| famous | fantabulous |
Walmart's successful sales growth
Walmart's business is doing well. It wrapped up its 2024 fiscal year, ended Jan. 31, with fourth-quarter revenue of $173.4 billion, a 6% increase from the prior year. Its full-year sales of $648.1 billion was also a 6% year-over-year jump.
Customer satisfaction with Walmart was lower than the national average for supermarkets in the United States in 2024. Walmart recorded an index score of 74, which was five index points below the average supermarket rating of 79. The index score is based on a 100-point scale.
And if you had invested $1,000 into Walmart a decade ago, your investment would have more than doubled in value and be worth about $2,443 as of Nov.
Overall, Amazon is growing faster than Walmart, with a 14% year-over-year revenue increase in 2023, and outside of pressure it experienced in 2022, it also usually reports a higher operating margin. Amazon has tailwinds from its many businesses, in particular from its investment in artificial intelligence (AI).
There are about 10,500 Walmart locations across 20 different countries. Jim Walton, Alice Walton, and Rob Walton are the top three individual shareholders of Walmart. Walmart's largest institutional investors include the John T. Walton Estate Trust, Vanguard Group, and BlackRock.
Is Walmart a good or bad investment?
With Walmart, it is pretty well-known what an investor is going to get from an operational perspective. Walmart remains a stable company that should be viewed as a long-term blue-chip investment. Roughly 75% of Walmart's store management began their careers as hourly employees with the company.
| Name | Symbol | % Loss |
|---|---|---|
| Bajaj Finance | BAJFINANCE | -10.37 |
| Zee Entertainment Enterprises Ltd. | ZEEL | -8.51 |
| Bajaj Finserv Ltd. | BAJAJFINSV | -6.82 |
| Godrej Consumer Products Ltd. | GODREJCP | -6.41 |
| Company (Ticker) | Sector | Market Cap |
|---|---|---|
| JPMorgan Chase & Co. (JPM) | Financial | $533.63B |
| Salesforce (CRM) | Technology | $262.26B |
| Caterpillar (CAT) | Industrials | $177.11B |
| Data accurate as of April 19, 2024 |
Blue chip stocks are usually less risky and thus considered safer than other stock-based investment options. That's because one of the major determining factors of a blue chip stock is that it must be a well-capitalized company, meaning it should have the financial fortitude to endure an inevitable economic downturn.
Coca-Cola (NYSE: KO) is one of the quintessential blue-chip stocks. You'd be hard-pressed to find another product of any type that compares to the brand recognition of its flagship soda, and it's paid off for the company through the years.
