Walmart’s Best Month in Years
Walmart, the largest private employer in the US has risen more than 13% in March. In the wake of the panic-buying amid COVID-19, it has become one of the top Dow stocks this month. This has been its best month since 2014.
According to John Petrides, portfolio manager at Tocqueville Asset Management, about 50% of its groceries are sold throughout the US. It’s not a surprise that the largest retailer is outperforming the stock market with this hoarding and stockpiling of groceries.
More than two-thirds of its revenue comes from within the US. According to FactSet Estimates, the company’s total sales will climb by 3% in the first quarter.
JC O’Hara, chief market technician at MKM Partners said we have more people working from home, and that causes disruption. This disruption is not just a one or two day phenomenon and we’re not sure of the duration. Walmart we think is a prime example of companies that benefit from this change in demand.
Its shares of stocks were up nearly 18% last week while the XRT retail ETF which holds Wallmart fell 9%.
Walmart could continue to outperform, given the shock to the consumer said, O’Hara.
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Walmart Rewards Employees
The world’s largest brick-and-mortar retailer said it will pay nearly $550 in bonuses to hourly employees.
Dan Bartlett, the company’s executive vice president of corporate affairs said the bonuses will reward employees for performing “Herculean efforts”. They would want to put money into their pockets.
Its special cash bonuses will total more than $365 million. Full-timers will get a $300 bonus and part-timers will get a $150 bonus. Workers who were employed by the company as of March 1 will qualify for the bonus pay-out on April 2.
It is speeding up bonus payout of the next quarter for store, club, and supply chain employees. It plans to pay $180 million bonuses in April, a month ahead of schedule.
The company plans to hire 150,000 new associates in the coming months to keep up with heightened demand. Barlett said they are expediting background checks and new employee training.
In stock trading, it cleared the 125.48 buy point closing at $122.58, gaining 2.78%. Today it was $124.70 during the pre-market sale while the retail corporation’s shares are trading at $122.45. For the company, the coronavirus has taken a beneficial turn, maintaining its position and managing to jump a new high.
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