Walmart (WMT, $101.30) set to increase offerings for billion-dollar pet market
The world’s biggest retailer, Walmart, is all set to open its first online pet pharmacy along with the opening of dozens more veterinary clinics in its stores, as it hopes to tap on the growing pet market and lure more U.S. pet owners who are spending billions of dollars each year on their dogs and cats.
Walmart is expected to open more than 80 veterinary clinics in its stores on top of its already existing 21 clinics across six states. In these stores, pets can receive vaccines, care for minor illnesses and other routine exams.
Additionally, Walmart would offer low-cost prescriptions through its online pharmacy called WalmartPetRX.com for pets to rival the top pet e-commerce business Chewy.com.
Analysts have figured a rough 60% rise in the number of pet related items sold on its website last year. Research reveals that a record $72.5 billion was spent on pets in the U.S. last year and it is estimated that this figure will exceed $75.3 billion this year, compared with $60 billion spent on pets just four years ago.
Key expense figures of 2018 by per parents according to APPA include: $30.32 billion on food, $18.11 billion on vet care, $16.01 billion on supplies and over-the-counter medicines; $2.01 billion on purchasing the pets themselves; and $6.11 billion on ‘other services’.
In accordance with these figures, in 2019 estimates say that food spending will climb to $31.68 billion, with spending on vet care reaching $18.98 billion; spending on supplies and medicines will amount to $16.44 billion; spending on animal purchases will equate $1.97 billion; and ‘other services’ will cost $6.31 billion.
The data indicates that pet parents are taking better care of their pets, especially in terms of what they are feeding to them. Sales of fresh pet food in the U.S. rose as high as 70%, to more than $546 million, between 2015 and 2018, according to a certain research. So, Walmart is now focusing on more health conscious brands and premium food options to tap the billion dollar pet market.
Besides rival Chewy,com, other competitors in the market include Amazon’s (AMZN) ‘Wag’, Target’s (TGT) partnership with BarkBox, and Petco’s partnership with ‘JustFoodForDogs’.
WMT in upward trend: price may ascend as a result of having broken its lower Bollinger Band on December 20, 2024
WMT may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 39 cases where WMT's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 48 cases where WMT's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on January 08, 2025. You may want to consider a long position or call options on WMT as a result. In of 82 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where WMT advanced for three days, in of 343 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 380 cases where WMT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for WMT moved out of overbought territory on December 18, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 57 similar instances where the indicator moved out of overbought territory. In of the 57 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where WMT declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 63, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. WMT’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (8.278) is normal, around the industry mean (7.792). P/E Ratio (37.517) is within average values for comparable stocks, (41.497). Projected Growth (PEG Ratio) (2.730) is also within normal values, averaging (2.705). Dividend Yield (0.009) settles around the average of (0.024) among similar stocks. P/S Ratio (1.090) is also within normal values, averaging (1.244).
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