There are currently eight publicly traded companies with a market capitalization of $1 trillion or more: Nvidia, apple, Microsoft, alphabet, Amazon, Meta platforms, Teslaand Berkshire Hathaway.
These stocks are very popular, and for good reason: they have made a lot of investors rich. However, none of them are particularly known as dividend stocks, and so far the Trillion Dollar Club has excluded long-time dividend payers. However, this could soon change.
Start your morning smarter! Wake up with Breakfast news In your inbox every market day. Register for free »
Walmart (NYSE: WMT)the world’s largest retailer and the world’s largest company by revenue, has been quietly outpacing the rest of the retail sector in recent years as its commitment to omnichannel sales and reputation for everyday low prices has driven steady growth. At the same time, many of its peers have suffered from inflation and weak consumer spending.
Walmart reported another round of strong quarterly results Tuesday morning. Overall growth was strong across the board, with comparable store sales rising 5.3% at U.S. stores (excluding fuel), their best performance in at least five quarters. Sam’s Club, the members-only retail chain, reported comp growth of 7% excluding fuel.
In its international segment, which has historically been a difficult sector for the company, constant currency revenues rose 12.4% to $30.3 billion. Overall, revenue rose 5.5% to $169.6 billion, beating expectations of $166.6 billion.
The retailer also had strong margin improvement, with gross margin increasing 21 basis points to 24.2%, driven by lower markdowns in U.S. stores and strong inventory management. Gross operating margin also expanded, with operating income rising 8.2% to $6.7 billion. Adjusted earnings per share (EPS) rose from $0.51 to $0.58, ahead of the consensus of $0.53.
Walmart’s stores have performed well, but they are also benefiting from emerging growth businesses such as advertising, with revenue jumping 28%, and global e-commerce remaining strong with sales up 27% as it gains market share over Amazon and other competitors.
The company also raised its guidance, indicating increased confidence in the holiday quarter. It now expects net sales to rise 4.8% to 5.1% and full-year adjusted EPS of $2.42 to $2.47.
Walmart’s market cap surpassed $700 billion for the first time on Tuesday, November 19, meaning the company is approaching a $1 trillion market cap. At its current valuation, the stock would only have to grow 43%, which seems achievable given the recent momentum. The stock is now up 66% year to date, although it will be difficult to replicate that performance next year.
Comments are closed, but trackbacks and pingbacks are open.