Where Will Walmart Stock Be in 3 Years?
A look back at the performance of 's (NYSE: WMT) stock in the 21st century reveals some interesting trends. From 2000 to 2016, Walmart's stock rose in value by roughly 0%. That's a terrible return for a 16-year holding period. Then, suddenly, Walmart's stock price began to rise. Since 2016, shares have tripled in value. In the past 12 months, their 29% jump has narrowly outperformed the heady 27% rise of the S 500.
What caused Walmart's resurgence over the past eight years or so? More importantly, will this retail giant's stock continue to outperform?
One of the simplest ways to assess a gigantic company (it's the biggest retailer in the world by multiple metrics) like Walmart is by analyzing its price-to-sales ratio. In 2016, the market was only willing to pay 0.4 times sales for Walmart stock. The company was hugely profitable, but its sales had actually begun to decline. The stock's depressed price-to-sales ratio seemed justified given that Walmart's business seemed to be plateauing.
Source Fool.com
Walmart Inc. Aktie
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