Retailers across the ecosystem are desperately thinking about what the consumer will look like in 2024. Will retailers be as resilient as he was in 2023, or will their fear get the better of them and tighten their belts, thereby leaving retailers out in the cold? For Walmart, the answer doesn’t seem good so far (New York Stock Exchange:WMT) CEO Doug McMillon said in a recent interview: The interview hurt Walmart stock, which fell slightly in afternoon trading Wednesday.
Mr. McMillon considered the overall situation and ultimately offered the most positive thing he could about the retail landscape in 2024. That said, it’s hard to predict how it will turn out. The prediction may be easier than McMillon claims, given the current situation on the ground: credit card usage is up, excess savings are all but wiped out, and inflation remains runaway. But most CEOs don’t immediately declare their employees to start looking for new jobs because their entire industry is headed for disaster. Sure, there are some improvements, such as toy prices coming down, but it may not be enough to excite consumers.
encourage consumers
So if price doesn’t work, what will? Walmart has at least one plan in mind. It’s the “Shoppable Series”. Yes, Walmart commissioned an entire romantic comedy series called “Add to Heart,” which featured more than 330 products that viewers could order while watching his 23-part series. This series has been adapted from TikTok to Roku (Nasdaq:Roku). The only question, of course, is whether anyone would be willing to open their wallet just because they saw someone using this product in the middle of a holiday movie storyline. Additionally, Walmart recently added breast cancer screening services to its lineup in partnership with RadNet (NASDAQ:RDNT) This is expected to attract more potential shoppers.
Is Walmart a good stock to invest in now?
Turning to Wall Street, analysts have a consensus rating of Strong Buy for WMT stock, based on 25 buys and 5 holds assigned over the past three months, as shown in the image below. I have. WMT’s average price target of $180.79 per share means it has 17.04% upside potential, after the stock has gained 4.9% over the past year.
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