Understand The Pros And Cons Of Investing In Walmart Stocks

Walmart Stocks have been hitting the headlines for its falling prices. The reasons could be many and the major being the sudden increase in the minimum wage requirement. Having said this, Walmart is doing its best to expand its segment. They are foraying into the grocery segment in the online forte. This can be a major expansion plan as there are established players in the segment namely Amazon and Target.

If you are a trader then you must be thinking about the potential for profits in investing in the Walmart stocks. The following articles give a brief overview of the pros and cons of the same:

Pros:

Stable

Walmart is in the line of retail business for more than fifty golden years. This long standing in the market is a proof of its quality and reputation. Customer service is at its best and so is its worldwide presence. It has entered into almost all the major retail segment in the business. You may not expect a sudden growth in the stocks but it offer stable and steady increase in its revenues and profits.

Capital

The company has proved its dedication through the apt payment of returns to its shareholder. Dividend payment has been done on a regular basis. The profits churned from the business operation have been shared with its shareholder. Reinvesting the profits and reaching greater heights of success has been the slogan for success.

Updating

Walmart has never become stagnant as it has been updating its technological arrangements. Keeping up with the pace of changing technologies, walmart has been in the e-commerce, introduced app and so on.

Cons:

It does come with a few disadvantages which are worth noting as an investor:

Consumer loyalty

Despite being a giant retail outlet, it does face competition from several other players in the market. The consumer turns in for newer brands and outlets. Also, the sudden surge in the wages and bad weather had posed problems with retaining its customer base.

Bad reputation

Walmart has been in news for wrong reasons too. Payment of low wages to its workers took a bad turn when workers went on to streets for protests. Similarly, there were also bribery issues on the management. These affected the reputation of the brand. It also struggled to expand into the rural and semi urban areas in several countries. All these delayed their expansion plans.