Nov 18 Reuters Walmart shares are set for their best yearly gains in over two decades as the retail behemoth39;s low prices for everyday essentials give it an edge over competitors facing weak demand from budgetconscious consumers.
The stock has gained about 60 so far this year, outstripping gains of about 13 in the SP 500 Consumer Staples sector index, as well as a 21 rise in the SP 500 Consumer Discretionary index.
Rival Target39;s shares are up about 7 this year, while the benchmark SP 500 has risen 23.
The stock jumped 106 in 1998 when the company was expanding its supercenter store format, and solidifying its position in Canada and Mexico.
The record jump was sandwiched between a roughly 70 rise in Walmart39;s stock price in 1997 and 1999.
Organic growth along with a strong balance sheet and low levels of debt make Walmart a very popular stock right now, said Brian Mulberry, client portfolio manager at Zacks Investment Management.
Walmart is set to report its thirdquarter results on Tuesday, Nov. 19, and is expected to post a roughly 4 rise in revenue and 5 growth in adjusted operating income, according to estimates compiled by LSEG.
The retail bellwether has started to benefit from investments in its ecommerce and advertising businesses that have helped the company grow its operating income at a faster clip than its revenue.
The company has invested billions over the last few years on automation in its supply chain to help stock fresher produce at its…