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Aug. 16, 2021, 3:56 p.m. EDT

Walmart preview: U.S. sales growth at Walmart could outdo Amazon

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Tonya Garcia

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Estimize forecasts revenue of $139.19 billion.

Stock price: Walmart stock has rallied 8.3% over the last three months through Monday, and is up 4.8% for the year to date.

The Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -3.57% has gained 16.4% for 2021 so far.

Other items:

Other analysts are also putting Walmart’s growth this quarter in the grocery basket.

“Grocery should lead comps performance accelerating from Q1,” wrote Credit Suisse in a note.

Credit Suisse rates Walmart stock outperform with a $158 target price.

“We expect Walmart to maintain momentum over the coming quarters as the environment normalizes and shoppers once again become more price sensitive,” wrote Cowen analysts.

“Further, our proprietary surveys indicate Walmart remains an online grocery share leader as over 58% of online grocery shoppers in June purchased from the retailer.”

Cowen rates Walmart stock outperform with a $170 price target.

Read: Grocery Outlet shares slide on concerns the retailer can’t hold on to customers gained during COVID

-Walmart’s private-label insulin is a big opportunity.

Cowen analysts estimate that 14% of Walmart’s customers have diabetes. In June , the company announced that it has partnered with Novo Nordisk A/S /zigman2/quotes/203484366/composite NVO -2.67% /zigman2/quotes/203899601/delayed XE:NOVC -2.21% on private-label insulin.

Cowen analysts think the insulin offer could drive repeat business. It’s also part of the company’s effort to dive more deeply into the healthcare category.

“Stepping back, this is just the latest move as the retailer has been beefing up its healthcare ecosystem which includes the recent acquisition of MeMD, a telehealth provider, and launching Walmart Insurance Service last fall,” Cowen wrote in a note published Thursday.

“Additionally, Walmart also operates 20 clinics with plans for additional openings in the near term. We are constructive on Walmart’s advances into healthcare as the retailer is expertly widening its retail ecosystem which we expect will result in increased customer loyalty.”

Bank of America notes that Walmart is growing its alternate revenue streams including healthcare, advertising and services. Several of the health centers the company has planned with be in Florida, where analysts say the company will make inroads with an older demographic.

/zigman2/quotes/210598065/realtime
US : Dow Jones Global
31,490.07
-1,165 -3.57%
Volume: 465.06M
May 18, 2022 4:56p
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/zigman2/quotes/203484366/composite
US : U.S.: NYSE
$ 103.50
-2.84 -2.67%
Volume: 992,240
May 18, 2022 4:00p
P/E Ratio
30.83
Dividend Yield
1.08%
Market Cap
$238.69 billion
Rev. per Employee
$486,085
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/zigman2/quotes/203899601/delayed
XE : Germany: Xetra
97.57
-2.21 -2.21%
Volume: 5,391
May 19, 2022 12:57p
P/E Ratio
33.74
Dividend Yield
1.43%
Market Cap
€226.56 billion
Rev. per Employee
€419,232
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