Pros and Cons of Investing in Walmart

PHOTO CREDIT: Walmart

OVERVIEW

Walmart Incorporation is a company based in the United States. The company operates a chain of retail stores in over 24 countries and under 48 different brands like Walmart and Sams Club. The company sells groceries, outdoor products like bikes, pharmaceutical products line insulin, and other personal care products in over 10,500 stores. The company was founded in 1945.

PROS:

  1. Walmart is a great reopening play in an investor’s portfolio. The company saw a sharp rise in demand for things like school uniforms, school supplies, luggage, and other things as people started to go back out once again. This will help the company increase its sales in the short to mid term.

CONS:

  1. The company faces tough competition in the retail industry. Some of these competitors include Target, Costco, Kroger, Albertsons, Amazon, and many others. This competition might hurt the company and its investors in the future.

MY OPINION

I think that Walmart is a great long-term investment due to its position as a good reopening play, strong e-commerce growth, strength in the grocery business, its massive scale, revenue-heavy business, as well as a cheap stock price. However, tough competition might hurt the company and its investors in the future.