Walmart Thrives During Recessions, Stock Rises 14% in 2001
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Fool
- Economic Resilience: During the 2001 recession, Walmart's stock rose by 14% while the S&P 500 fell by 8%, demonstrating its strong ability to withstand market downturns and solidifying its position as a safe haven for investors.
- Long-Term Performance: From 2007 to 2009 during the Great Recession, Walmart's stock increased by 8% compared to a 36% decline in the S&P 500, indicating its capacity to maintain profitability during economic crises, attracting more investors seeking stability.
- Inflation Resistance: Walmart's focus on low-priced everyday items makes it a preferred choice for consumers during high inflation periods, enhancing its market share and customer loyalty, which boosts the company's long-term growth potential.
- Market Positioning: Walmart's extensive brick-and-mortar presence provides convenience in rural areas, allowing it to stand out against competitors like Amazon, which ensures its leadership in the retail market despite the competitive landscape.
WMT
$111.74+Infinity%1D
Analyst Views on WMT
Wall Street analysts forecast WMT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for WMT is 121.92 USD with a low forecast of 108.00 USD and a high forecast of 130.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
26 Analyst Rating
26 Buy
0 Hold
0 Sell
Strong Buy
Current: 111.610
Low
108.00
Averages
121.92
High
130.00
Current: 111.610
Low
108.00
Averages
121.92
High
130.00
About WMT
Walmart Inc. is a technology-powered omnichannel retailer. The Company is engaged in the operation of retail and wholesale stores and clubs, as well as eCommerce Websites and mobile applications, located throughout the United States (U.S.), Africa, Canada, Central America, Chile, China, India and Mexico. It operates in three reportable segments: Walmart U.S., Walmart International and Sam's Club U.S. The Walmart U.S. segment includes the Company's mass merchandising concept in the U.S., as well as eCommerce, which includes omni-channel initiatives and certain other business offerings such as advertising services. The Walmart International segment consists of the Company's operations outside of the U.S. through its subsidiaries, as well as eCommerce and omni-channel initiatives. The Sam's Club U.S. segment includes the warehouse membership clubs in the U.S., as well as samsclub.com and omni-channel initiatives.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
