Markets are quick to reward strong companies. Walmart (WMT) is the winning stock of the week. In the last quarter, Walmart earned $0.60 a share (non-GAAP). Sales in its global e-commerce unit grew by 21%, thanks to strong store-fulfilled pickup and delivery, along with the marketplace. Its global advertising business grew by 24%.
WMT stock is an attractive stock to buy. Units sold and transactions increased, leading to market share gains in general merchandise. While competitors worsen customer service, Walmart is improving the experience.
In the technology sector, Cisco Systems (CSCO) resumed its downtrend. Shares pulled back from a $50 resistance level after the firm posted revenue of $12.7 billion. This is down by 13% Y/Y. Investors are not confident that Cisco Hypershield, a significantly new security innovation that uses AI, will increase growth rates. Furthermore, EPS growth driven by its Splunk acquisition (among others) does not start until 2026.
Home Depot (HD) posted a small decline in EPS in its Q1/2024 period. However, the firm increased its focus on growing pro wallet market share. It will drive sales growth by offering a differentiated set of capabilities. Customers will find the service at newly built stores.
HD stock may rebound from the underperformance. Investors need to wait for its investments in technology and capabilities to improve the customer experience. As a result, productivity increases, and market share will grow.
