About 10 days before Black Friday – one of the most anticipated shopping days for merchants – a high-volume retailer Wal-Mart reported better-than-expected revenue and earnings.
And good news for consumers: The company plans to designate Thanksgiving staple food prices At the same level as in 2021.
For the third quarter of the fiscal year, Walmart has generated more than $152 billion in total revenue, exceeding expectations by Wall Street analysts by about $148 billion. The company also reported adjusted earnings per share of $1.50 for the quarter, compared to the $1.32 analysts had expected.
Wal-Mart saw growth in grocery sales this quarter as it struck several deals to attract budget-conscious consumers.
“With our Days Events in the US and a Thanksgiving meal that will cost the same as last year, we’re here to help make this time relevant and special for families around the world,” said Walmart CEO Doug McMillon. press release
Shoppers will be able to take advantage of the savings on holiday meal items through December 26, According to the Walmart website.
In addition to an increase in grocery sales, Wal-Mart also got a boost from a strong back-to-school shopping season in the United States and global sales events in countries like India and China, McMillon said on an investor call.
again in the second quarter, Wal-Mart’s earnings also exceeded Wall Street analysts’ expectations Inflationary shoppers sought affordable necessities such as groceries rather than discretionary goods such as clothing.
Wal-Mart stock It jumped on Tuesday, after the company’s earnings call.
If you invested $1,000 in Walmart a year ago, you’d see a slight return on your investment and have about $1,024 left as of November 15, CNBC calculates. These calculations were made after the markets opened and were based on the stock price of $149.
If you invested $1,000 in Walmart five years ago, your investment would be worth about $1,755 as of November 15, according to CNBC’s calculations.
And if you invested $1,000 in Walmart a decade ago, the value of your investment would have more than doubled and would be worth about $2,377 as of November 15, according to CNBC’s calculations.
Wal-Mart is expected to continue to perform well During the holiday season, when the company’s focus on lower prices is expected to continue to attract price-conscious consumers, Deutsche Bank analyst Kristina Catai forecast ahead of the earnings report.
However, Wal-Mart’s performance can be affected by various factors, such as shifts in consumers’ buying habits or other increases in labor costs, Katai adds.
With that in mind, it’s always important to remember that a stock’s past performance should not be used as an indicator of how well it will perform in the future.
Due to the unpredictability of the stock market, a passive investing strategy tends to make more sense for most investors, rather than investing in individual stocks.
Investing in a market index, such as the S&P 500, can be a great way to get started. Because the S&P 500 tracks the performance of large, publicly traded US stocks, investing in an S&P 500 index fund or exchange-traded fund (ETF) can be a great way to gain exposure to a number of well-known companies.
As of November 15, the S&P 500 is down about 15% compared to 12 months ago, according to CNBC’s calculations. However, the index has increased by about 55% since 2017, and has grown by about 196% since 2012.
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