Walmart

What is Walmart stock?

Walmart stock refers to US company Walmart, Inc.'s shares available for public trading. Founded by Sam Walton, the first Walmart store opened in Arkansas, USA in 1962. The retail giant now operates a chain of multinational discount department and grocery stores. Customers can also buy goods online using eCommerce sites.

Walmart mainly operates across three segments: Walmart US, Walmart International and Sam's Club. It also runs under different names worldwide. As of January 2023, the company had 10,623 stores and 380 distribution facilities worldwide.

After opening numerous stores over a short period, the company went public in October 1970. WMT stocks cost $16.50 per share. Today, Walmart sits at #1 on the Fortune Global 500 list and has done so for a decade. In 2022, the company generated global retail sales of nearly $568 billion, which meant a 6.7% YOY increase.

Walmart stock trades on the New York Stock Exchange under the ticker symbol WMT and is considered a blue chip. WMT shares are also listed on the Dow Jones Industrial Average Index, the S&P 100 Index and the S&P 500 Index.

How has Walmart stock performed over time?

Based on past performance, Walmart shares history has proven to be a great option for traders seeking a long-term blue-chip investment. WMT stocks have typically been seen as a good choice for value-investing due to the company's global recognition, as well as its ongoing expansion and investments in technology.

Generally, WMT shares have remained stable in poor economic conditions, although they still experience fluctuations. In July 2022, shares dropped almost 10% after the company raised concerns about a profit slowdown due to inflation. However, Walmart shares surged 35% from July 2022 to July 2023 due to shoppers seeking discount prices. It was also reported that shares could rise over 30% in the next year as food inflation starts to ease.

In the past five years alone, Walmart shares have risen by 70% and are hovering around an all-time high. Currently, the highest WMT share price is $165.25, recorded on September 14, 2023.

A key draw for traders is the company's reinvestment strategy and its commitment to giving back to shareholders. The Walmart share dividend policy has seen an annual increase each year since it began paying dividends in 1974. As of October 2023, its dividend yield sits at 1.41%. Based on this past performance, it is likely that Walmart will provide future value to shareholders through dividend payments.

What affects the Walmart stock price?

The Walmart share price, like any other financial asset, can be influenced by a range of factors. We recommend monitoring the following:

• Competitors: Despite its colossal reputation in the retail world, WMT stock performance can still be dictated by competitor activity. Target and Costco offer a similar discount model through in-person stores, while Amazon is a competitor in the online retail space. Announcements from one company could influence the share price of another.
• Economic conditions: Reports show that Walmart gained market share despite inflation, due to a wider demographic of shoppers choosing the store to reduce household costs. It is common for share prices to fluctuate depending on market conditions – and Walmart is in a unique position as a discount retailer.
• Innovation: Ongoing innovation can influence the WMT stock price. Walmart doesn't shy away from investing in technological solutions to remain relevant. The 'scan and go' app was created to help customers shop more efficiently while e-commerce strategies such as pick-up lockers have helped it remain on par with competitors like Amazon.
• Revenue: Walmart has a strong revenue history. In the fiscal year ended January 31, 2023 revenue sits at $611.3 worldwide. These announcements, alongside other financial reports, can cause the WMT share price to rise.

How to trade or invest in Walmart stock

With Tradu, you can trade in several ways. You can choose to trade financial derivatives like contracts for difference (CFDs) if you'd prefer not to own the underlying asset. This approach means you can speculate on the WMT stock price rising or falling. Alternatively, you can take full ownership of the asset by investing in Walmart stock.

CFDs, allow you to exchange the difference in the WMT stock price with a buyer or seller without owning it. This is calculated based on the difference between when the contract opened and when it closed.

CFDs can be traded using leverage, which can increase your market exposure using a smaller deposit. Be wary that this can also magnify any losses.

Investing in Walmart stock

If you decide to invest in Walmart stock, this means you'll take ownership of the underlying asset. This is typically used as a long-term approach and tends to be less sensitive to volatility.

Unlike with financial derivatives such as CFDs, you cannot use leverage when purchasing WMT shares. As a result, you may experience fewer chances to profit, unless there is a bearish market.

What are the pros and cons of trading Walmart stocks?

When deciding whether to invest in Walmart stock, it's important to consider the advantages and disadvantages involved. We've highlighted examples of each:

Pros of trading Walmart stocks

• Leverage: You can increase your market exposure by trading with leverage up to 1:20, allowing you to generate more profit from smaller deposits. Make sure you're clued up on the risks of exposing yourself to greater losses before committing.
• Trade both ways: Choosing to trade using CFDs means you can profit from rising and falling prices. You can benefit from both bull and bear markets.
• Coverage: Due to the company's global presence, Walmart stock news coverage is high, which means you're unlikely to miss an update that could inform your trading strategy.

Cons of trading Walmart stocks

• Volatility: As with any stock, the WMT stock price can suddenly fluctuate with the market, making it difficult to make Walmart share predictions.
• Leverage risk: Using leverage can heighten profits, but it can also increase losses, so you should familiarise yourself with these risks before opening any trades.

How to start trading or investing in Walmart stocks with Tradu

1. Open a Tradu account: Register today and begin trading or investing in WMT stock.
2. Decide your strategy: Decide whether to buy stock directly or use derivatives, considering your risk tolerance and personal goals.
3. Check WMT stock performance: Check the Walmart shares history and apply fundamental analysis alongside our technical indicators.
4. Open your first trade: Choose your position and enter a trade. You can track price movements or use our automated stop orders to secure profits and restrict losses.
5. Diversify your portfolio: Apply your strategies across a range of markets, including crypto, forex, indices and commodities.
6. Expand your trading knowledge: Gather insights using our library of resources to shape your strategy before you commit.