Walmart (WMT, Financial) is positioned to end the year strong as groceries are at the forefront of its mix of essential and discretionary products. TD Cowen's analyst Oliver Chen highlights that Walmart's competitive edge is its ability to sell affordable food and grocery items. He also notes its broad range of discretionary goods and gives Walmart a "Buy" rating with a price target of $100. This combination has allowed the retail giant to outdo other sectors that are struggling to stay competitive in the retail space. That's where Walmart's scale and data capabilities, coupled with the use of artificial intelligence, give it a big leg up. Investor confidence has seen Walmart's shares hit an all-time high reaching $92.52 recently.
The company is off to a good start for the holiday season, with CFO John David Rainey confirming that sales in the fourth quarter are expected to grow 3% to 4%. As inflationary pressures continue to ratchet up, the store also has captured demand thanks to a massive footprint as people flock for essential goods and cheaper prices. Walmart's position as a retail leader during the holidays is due to its ability to adapt to changing consumer behaviors combined with its grocery operations. Analysts continue to believe that the company will thrive with strong fundamentals and investments in technology and data-driven insights in the future.
