What is the value of your investment in Walmart today if you invested $1,000 10 years ago?
Next week, Walmart will promote its ongoing Black Friday and Cyber Monday holiday shopping events while announcing its fiscal third quarter results on Tuesday.
The company exceeded analysts' expectations with a revenue of $169.59 billion, while Walmart reported adjusted earnings per share of 58 cents, compared with the predicted 53 cents.
The company seems to be upbeat about the upcoming holiday season and reports that Walmart customers have been buying more general merchandise aside from groceries.
"Walmart's in-store volumes, pickup, and delivery grew faster in the U.S., with CEO Doug McMillon stating in a Nov. 19 press release that the company's teams are delivering value and convenience to customers and members."
Walmart has revised its net sales growth forecast for the year, predicting a range of 4.8% to 5.1%, up from the previously forecasted range of 3.75% to 4.75%.
Since the beginning of the year, the retailer's share price has increased by nearly 60% as of market close on Nov. 18.
How much an investment in Walmart would be worth now
According to the National Retail Federation, Walmart is the largest retailer in the U.S. in terms of sales volume, with a total of $635 billion in worldwide retail sales in 2023.
In October 1970, Walmart made common stock available to the public for $16.50 per share, and began trading on the New York Stock Exchange in August 1972.
As of market close on Nov. 18, Walmart's share price was $84.08 per share. Since then, the company's stocks have substantially increased in value.
Walmart's value today was calculated by CNBC using the company's Nov. 18 closing price, but not factoring in any potential price changes following the most recent quarterly earnings report. The calculations also determined the worth of a $1,000 investment in Walmart made one, five, or 10 years ago, as well as when the company went public 54 years ago.
If you invested one year ago
- Percentage change: 64%
- Total as of Nov. 18: $1,639
If you invested five years ago
- Percentage change: 119%
- Total as of Nov. 18: $2,191
If you invested 10 years ago
- Percentage change: 227%
- Total as of Nov. 18: $3,266
If you invested when Walmart went public in October 1970
- Percentage change: 1,788,465%
- Total as of Nov. 18: $17,885,648
Many financial experts recommend a passive investing strategy
Despite the short-term performance of a company's stock, it does not necessarily predict its future behavior. Factors such as market volatility, natural disasters, and shifts in investor sentiment can cause sudden and unpredictable changes in a stock's price.
Financial experts suggest a low-cost index fund strategy instead of constantly chasing the hottest stock.
The benefit of this investment strategy can be two-fold:
- By investing in index funds, you can diversify your portfolio by investing in a broad range of companies, such as Walmart, Amazon, and Apple, through an S&P 500 index fund.
- Actively managed funds typically have higher costs than index funds, which merely seek to replicate a market index such as the S&P 500.
Since 2014, the S&P 500 has ballooned by about 187%, and since 2019, it has soared by nearly 89%. As of Nov. 18, the index grew by about 31% compared with 12 months ago, according to CNBC's calculations.
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