Walmart’s shares have gained 6.55 percent in 3 months / Walmart Beats Am...

Walmart’s shares have gained 6.55 percent in 3 months / Walmart Beats Amazon

Traditional retailer Walmart is coming back big time. And it is beating on-line retailer Amazon in the last three to six months.

Walmart’s shares have gained 6.55 percent in the last three months and 19.71 percent over the last six months compared to 6.55 percent and 15.67 percent of Amazon.

Source: Finance.yahoo.com 8/10/2017

That’s a big change from a few months ago, when Amazon was the undisputed winner on Wall Street, both on short-term and long-term basis.

John Zolidis, President of Quo Vadis Capital, Inc. attributes Walmart’s strong Wall Street performance to investor enthusiasm over its ability to compete effectively against Amazon, and on US “grocery inflation,” which has helped the performance of traditional retailers, and especially Walmart which relies heavily on grocery sales.

“I believe WMT shares have risen as investors are increasingly optimistic that the company can prove to be an effective competitor to AMZN,” says Zolidis.  “In addition, grocery inflation is a huge positive for WMT reported same-store sales. The company has experienced a significant headwind to reported comps due to deflation over the past two years.  Grocery prices are now turning higher in several categories which should help reported same-store sales at WMT (and other grocers).  Grocery is 55% of WMT U.S. sales.  Lastly, retailers have reported better 2Q results, starting with Target which pre-announced comps turning positive and including Kohl's and Macy's which reported this morning.  Since WMT had previously been outperforming each of these, it follows that WMT trends likely improved on a sequential basis in the second quarter as well.