WMT Alert: Why Walmart shares are a good buy after first-quarter results

Walmart (NYSE:WMTThe stock released its Q1 FY25 results on Thursday, May 16, and investors and analysts are impressed with its performance. Consolidated revenue was $161 billion, up 6% year-over-year.

Additionally, consolidated gross margin increased 42 basis points due to improvements across all segments. Its global advertising business also grew 24% year over year, including a 26% increase at Walmart Connect. With the stock up more than 20% year-to-date, now is a good time for investors to take a closer look.

Strong earnings results for the first quarter of FY25

Investors are optimistic after Walmart’s impressive earnings results for the first quarter of fiscal 2025. Consolidated revenue was $161 billion, up 6% year-over-year.

Its global advertising business grew 24% year over year, including 26% for Walmart Connect in the United States. Walmart International’s advertising business grew 27%, led by FlipKart and Walmex.

Walmart’s international business remains strong, with net sales increasing 10.7%, led by FlipKart, China and Walmex. E-commerce sales increased 19% year-over-year, with food and consumer goods showing significant growth.

Sam’s Club’s comparable sales also rose 4.6% year-over-year. Walmart shares attributed these results to continued strong performance in its grocery business, as well as growth in e-commerce, advertising and other businesses.

The omnichannel strategy works

Walmart continues to make great progress with its omnichannel strategy. This strategy increases operational efficiency and profitability and makes it easier for customers to shop and spend money.

Their omnichannel strategy has been a key driver of their recent success. The company has invested heavily in expanding its e-commerce presence and continues to pay dividends.

They were also able to use their physical stores to fulfill online orders, which helped improve the customer experience and reduce costs. The option of in-store shipping and pickup has led to strong e-commerce sales growth in recent quarters.

Walmart Stock: It’s Time to Pounce

Walmart stock remains well positioned to continue its upward trajectory in 2024. The company’s redefined strategy is working as management continues to drive diversified growth.

Their omnichannel strategy is working and their eCommerce sales continue to grow rapidly.

Their strength in international markets, led by Walmex, China and FlipKart, results in increased market penetration. Investors should pounce on the stock in 2024 on strong sales and FY25 EPS forecasts.

At the time of publication, Terel Miles did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to those of InvestorPlace.com Publishing Guidelines.