Walmart Falls Behind Soaring Home Depot in Market Value
(Bloomberg) -- Walmart Inc. has fallen behind Home Depot Inc. in market value despite having much higher revenue.
Buoyed by strong third-quarter earnings, Home Depot climbed 4.5% at 10:18 a.m. in New York, lifting its market capitalization to more than $409 billion. Walmart, which reported strong sales but some profit pressure from rising inflation, fell 2%.1. That dragged its market value to $401.4 billion.
The shift reflects investors’ growing concerns about Walmart this year, even as Costco Wholesale Corp., Target Corp. and Kroger Co. have outpaced the broader U.S. stock market. After Walmart stock posted double-digit returns last year and in 2019, the shares have stagnated amid questions about its prospects for long-term growth.
Through Monday’s close, Walmart had advanced only 1.9% this year, compared with a 50% surge by Target, 38% by Costco and 34% by Kroger. The S&P 500 Index jumped 25%. Amazon.com Inc. rose 8.9%, giving the online retailer a market value of $1.8 trillion.
Home Depot’s shares posted a 40% jump this year before Tuesday’s gains. While the company’s sales last year were only a fraction of Walmart’s, Home Depot posted has consistently posted significantly higher profit margins.
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