Many traditional retailers have faltered in an evolving environment. The rise of e-commerce has forced some of the oldest retailers out of business, but Walmart (NYSE:WMT) remains a titan.
Shares of Walmart have climbed 30.4% in 2019 as of close on December 9. However, the stock has been flat over the past month as shoppers gear up for the holiday season.
Walmart has managed to successfully penetrate the e-commerce space and its popularity as a grocery retailer has given it added strength. Its latest numbers were so good that it got a special shout-out from U.S. President Donald Trump, who hailed the results as a broad indicator of good health for the economy at large.
Domestic like-for-like revenues at Walmart rose 3.2% from the prior year in third-quarter fiscal 2020 report. It received a boost on the back of a 41% surge in e-commerce sales. The company has achieved 21 straight quarters of domestic growth.
CEO Doug McMillon said that Walmart is "prepared for a good holiday season". Not surprisingly, Cyber Monday saw the biggest online sales in history. The migration to mobile shopping has fueled much of this growth. This is great news for Walmart as we look ahead to the end of 2019.
Shares of Walmart are trading at a premium right now. The stock possessed a consensus forward price-to-earnings ratio of 23 as of close on December 9, according to analysis from Morningstar. It also had a high price-to-book value of 4.7.
