How much you’d have if you invested $1,000 a decade ago

Around 10 days until Black Friday – one of the most anticipated shopping days for merchandisers – big box retailer Walmart reported revenue and earnings that beat expectations.

And good news for consumers: the company plans to introduce thanksgiving staple prices at the same level as in 2021.

For the third fiscal quarter, Walmart generated more than $152 billion in total revenue, eclipsing the nearly $148 billion expected by Wall Street analysts. The company also reported adjusted earnings per share of $1.50 for the quarter, versus $1.32 expected by analysts.

Walmart saw growth in grocery sales this quarter as it rolled out various offers to appeal to budget-conscious consumers.

“With our Deals for Days events in the United States and a Thanksgiving meal that will cost the same as last year, we’re here to help make this time affordable and special for families around the world. “Walmart CEO Doug McMillon said in a press release.

Shoppers can take advantage of holiday dining savings through December 26 according to Walmart’s website.

In addition to increased grocery sales, Walmart also benefited from a strong back-to-school shopping season in the United States and global sales events in countries like India and China, McMillon said. on a call with investors.

Back in the second trimester, Walmart’s earnings also beat Wall Street analysts’ expectations as inflation-ridden shoppers sought affordable necessities like groceries rather than discretionary goods like clothing.

What this means for investors

Walmart Stocks surged on Tuesday, following the company’s earnings call.

If you invested $1,000 in Walmart a year ago, you’d see a slight return on your investment and you’d have about $1,024 as of Nov. 15, according to CNBC’s calculations. These calculations were made after markets opened and are based on a stock price of $149.

If you invested $1,000 in Walmart five years ago, your investment was worth about $1,755 as of Nov. 15, according to CNBC’s calculations.

And if you had invested $1,000 in Walmart ten years ago, your investment would have more than doubled in value and would have been worth around $2,377 as of Nov. 15, according to CNBC calculations.

Walmart should continue to perform well during the holiday season as the company’s emphasis on low prices should continue to attract price-conscious consumers, Deutsche Bank analyst Krisztina Katai predicted ahead of the earnings report.

However, Walmart’s performance could be affected by various factors, such as changes in consumer shopping habits or further increases in labor costs, Katai adds.

Investors should always do their homework

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