tl;dr
Share price pullbacks at Walmart (NYSE:WMT) and Kroger (NYSE:KR) indicate investors are concerned about competition among grocers heating up after Amazon (NASDAQ:AMZN) unveiled a low-cost grocery delivery program, UBS (UBS) said. Amazon (AMZN) is aiming to expand its fresh-food business through a de...
Share price pullbacks at Walmart (NYSE:WMT) and Kroger (NYSE:KR) indicate investors are concerned about competition among grocers heating up after Amazon (NASDAQ:AMZN) unveiled a low-cost grocery delivery program, UBS (UBS) said. Amazon (AMZN) is aiming to expand its fresh-food business through a delivery subscription benefit in the U.S. for its Prime members and customers using an EBT (electronic benefits transfer) card. It outlined the $9.99 monthly plan on Tuesday. Walmart (WMT) and Kroger (KR) shares ended that session down 1.8% and 2.3%, respectively, underperforming gains in the broader equity market (SP500). “The market has interpreted AMZN's change as a signal of increasing competition,” UBS analyst Michael Lasser wrote in a note Tuesday. “The reality is that all of the leading players have been competing intensely for some time for a greater share of online grocery spend,” he said. UBS anticipates online grocery penetration to grow "modestly" to ~10% of industry sales in 2024, retracing to a pandemic-era peak. Lasser said recent moves by retailers in the “revolution” of the online grocery industry include: * Walmart (WMT) rolling out on-demand early morning delivery, expanding its InHome, direct-to-fridge delivery service to 35M households from 6M over roughly the past three years ago and piloting drone deliveries. * Kroger (KR) expanding delivery into Northern Colorado, although it eliminated service in some Florida and Texas markets after the economics didn’t meet the retailer's initial expectations. * Target (TGT) revamping its loyalty programs, including a $49 a year membership plan, and working on leveraging existing capabilities within its Shipt delivery business. * Albertons (ACI) launching its Flash grocery service in late 2023, allowing customers to receive delivery and drive-up orders within 30 minutes. “As competition heats up, we would not be surprised to see another round of consolidation, which could further benefit the large players in the space,” Lasser said. For broader exposure to the Consumer Staples sector, investors can track exchange-traded funds including: * Consumer Staples Select Sector SPDR Fund (XLP) * Vanguard Consumer Staples ETF (VDC) * iShares U.S. Consumer Staples ETF (IYK) * Fidelity Covington Trust MSCI Consumer Staples Index ETF (FSTA) * Invesco S&P 500 Equal Weight Consumer Staples ETF (RSPS)
More about Walmart Inc
Walmart Inc. Stock Analysis Walmart Inc.
Walmart Inc. is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores from the United States, headquartered in Bentonville, Arkansas. It also owns and operates Sam's Club retail warehouses.
Industry Information
Industry: TRADE & SERVICES
Sector: RETAIL-VARIETY STORES
Stock Data
Market Cap: 476.15 billion
Current Price: $30.94
Price Change: $0.76 (1.91%)
52-Week Range: $80.24
Dividend Yield: 2.39%
Volume: 648.13 million
EPS: $61.63
PE Ratio: -0.124
Beta: 0.057
More about Kroger Company
The Kroger Company, founded in 1883 in Cincinnati, Ohio, operates in the retail-grocery stores sector. With a market capitalization of $40,147,505,000, the stock is currently priced at $18.79. Over the past year, it has demonstrated a price change of 1.13%, with a dividend yield of 2.96%. The stock has a price-to-earnings ratio of 208.97 and an earnings per share of 0.0144. The company's 52-week high stands at $58.23, with a 0.882% decrease from the previous close and a -0.006 change in the earnings per share.
More about Amazon.com Inc
Amazon.com, Inc. is an American multinational technology company that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. It is one of the Big Five companies in the U.S. information technology industry, along with Google, Apple, Microsoft, and Facebook. The company has been referred to as one of the most influential economic and cultural forces in the world, as well as the world's most valuable brand.
Sector: Trade & Services
Industry: Retail-Catalog & Mail-Order Houses
Market Cap: $1.867 trillion
Price/Earnings: 61.7
Dividend Yield: None
Beta: 2.91
52-Week High: $3,362.56
52-Week Low: $1,952.15
50-Day Moving Average: $3,249.49
200-Day Moving Average: $3,160.60
Shares Outstanding: 574.78 million
EPS: $15.79
PE Ratio: 83.15
Forward PE Ratio: 50.69
PEG Ratio: 0.139
More about UBS Group AG
UBS Group AG Stock Analysis UBS Group AG Stock Analysis Summary
UBS Group AG provides advice and financial solutions to private, institutional, and corporate clients worldwide. The company is headquartered in Zurich, Switzerland.
Sector: Finance
Industry: National Commercial Banks
Market Cap: $91.1 billion
PE Ratio: 3.36
EPS: $8.45
Dividend Yield: 12.56%
Current Ratio: 0.703
Revenue: $39.61 billion
Operating Margin: 33.4%
Return on Equity: 13.67%
Debt to Equity: 0.363
More about Target Corporation
Company: Target Corporation
Description: Target Corporation is an American retail corporation. Their retail formats include the discount store Target, the hypermarket SuperTarget, and small-format stores previously named CityTarget and TargetExpress before being consolidated under the Target branding.
Sector: Trade & Services
Industry: Retail-Variety Stores
Market Cap: 76,875,997,000
P/E Ratio: 18.63
EPS: 4.36
Dividend Yield: 8.94
Stock Price: $232.75
Volatility: 0.0385
Revenue: 107,411,997,000
Net Income: 185.05
Debt to Equity: 0.574
Current Ratio: 0.017
More about Albertsons Companies
Company: Albertsons Companies
Industry: Pharmacy and food operation
Sector: Trade & Services
Category: Retail-Grocery Stores
Market Cap: 11.68 billion
Price: $9.07
Change: 0.48 ( 2.23%)
PE Ratio: 137.71
EPS: 0.0164
Revenue: 79.24 billion
Gross Margin: 24.79%
Net Income: -0.17
ROE: 0.004
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