On Tuesday, Walmart made a significant announcement regarding its fiscal third quarter performance. As the retail giant gears up for its ongoing Black Friday and Cyber Monday holiday shopping events next week, it presented some remarkable figures. The company reported a revenue of $169.59 billion during this period, which exceeded analysts' expectations of $167.72 billion, as per LSEG consensus estimates. Moreover, Walmart achieved earnings per share of 58 cents after adjustments, compared to the predicted 53 cents by analysts.

Optimism Heading into the Holiday Season

Notably, Walmart seems to be in a positive stance as it enters the holiday spending season. It has stated that its customers have been purchasing more general merchandise outside of groceries. Doug McMillon, Walmart's president and CEO, emphasized in a Nov. 19 press release, "In the U.S., in-store volumes grew, pickup from store grew faster, and delivery from store grew even faster than that. Our teams are executing and delighting our customers and members with the value and convenience they expect from Walmart."

Full-Year Net Sales Forecast

Walmart now projects that its net sales will grow between 4.8% and 5.1% for the entire year. This is an improvement from the previously forecasted growth of 3.75% to 4.75%. Such an upward revision indicates the company's confidence in its business and the potential for continued growth during the holiday season and beyond.

Retailer's Share Price Performance

Since the beginning of the year, Walmart's share price has witnessed a remarkable increase. As of market close on Nov. 18, it has surged by nearly 60%. This significant growth reflects the market's confidence in the company's performance and future prospects. By sales volume, Walmart holds the top position among retailers in the U.S., as per the National Retail Federation. In 2023, it generated just over $635 billion in worldwide retail sales.

Investment in Walmart Over the Years

Walmart first allowed the public to purchase common stock in October 1970 at $16.50 per share and started trading on the New York Stock Exchange two years later on August 25, 1972. Since then, its share price has soared substantially. As of Nov. 18, the company's stocks were priced at $84.08 per share. CNBC calculated the value of a $1,000 investment made at different time points. If invested one year ago, the percentage change is 64%, and the total value as of Nov. 18 is $1,639. For a five-year investment, the percentage change is 119%, with a total of $2,191. A ten-year investment shows a percentage change of 227% and a total of $3,266. And if invested when Walmart went public in 1970, the percentage change is an astonishing 1,788,465%, with a total of $17,885,648.

Passive Investing Strategy Recommended

Many financial experts advocate a passive investing strategy. They believe that regardless of a company's short-term stock performance, it is not a reliable indicator of its future behavior. Various events such as market volatility, natural disasters, and changes in investor sentiment can cause a company's stock price to fluctuate unexpectedly. Instead of chasing the hottest stocks at the moment, experts recommend a more hands-off approach like investing in low-cost index funds. This strategy offers two main benefits. Firstly, it helps diversify the portfolio by spreading investments across a wide range of companies, including Walmart, Amazon, and Apple in the case of an S&P 500 index fund. Secondly, index funds generally cost less than actively managed funds as they aim to mimic a market index like the S&P 500. As of Nov. 18, according to CNBC's calculations, the S&P 500 grew by about 31% compared to 12 months ago. Since 2019, it has soared by nearly 89%, and from 2014, it has ballooned by about 187%.Want to earn more money at work? Take CNBC's new online course "How to Negotiate a Higher Salary." Expert instructors will teach you the essential skills to get a bigger paycheck, including how to prepare, build confidence, what to do and say, and how to craft a counteroffer. Pre-register now and use coupon code EARLYBIRD for an introductory discount of 50% off through Nov. 26, 2024.