In recent years, Walmart (NYSE: WMT ) stock has turned from representing a discounter catering to the lower half the income demographics, to attracting customers of all incomes. Whether in the bottom 10% or top 10%, more people are shopping at Walmart because of its focus on low prices combined with its strong omnichannel retail experience. “We are not just a play for value anymore,” TheStreet.
com reported Chief Financial Officer John David Rainey’s recent comments. “And convenience matters to someone irrespective of what your paycheck is, irrespective of what your income level is. And we expect that to be durable.
We don’t expect that to change.” The beauty of Walmart’s business model is that the low-income shopper is unlikely to stop shopping there. There are few better alternatives for them.
However, the company is gaining market share of those making over $100,000. The number of households making this amount and considering Walmart has risen by 340 basis points in one year to 54.0%.
Here are three reasons Walmart’s prospects have never been better. WMT Stock Is Reasonably Priced Investorplace’s Joey Frenette recently discussed three undervalued long-term stocks to buy in July. WMT stock was one of them.
He reasoned that a trailing price-to-earnings ratio of 30.1 was warranted given the magnet it’s become for shoppers of all kinds. The reality is that Walmart has the kind of buying power to keep its supplier costs low enough to be able to pass on the sa.