Finance
If you invested $10,000 in Walmart stock ten years ago, this is how much you would have today
It can be interesting to play what-if games with the stock market. We probably all know that the answer to the question, “What if I bought $10,000 worth of stock?” Apple 10 years ago?” will be a huge amount. In fact, you’d have more than about $95,000 – and more than about $100,000 if you reinvested dividends.
However, with many other companies the answer is no such guarantee. So here’s a look at where you’d be today if you invested $10,000 in shares of Walmart (NYSE:WMT) a decade ago.
The answer is less exciting: you would have about $29,500 – or about $32,800 if you had reinvested dividends (as of June 17). That probably still seems like a respectable gain, but actually lags the overall stock market, as measured by the S&P500. The S&P 500 would have turned your $10,000 into $30,700 or $33,400, depending on whether you reinvested the dividends. In fact, Walmart’s stock has lagged the S&P 500 over the past five and fifteen years.
What gives? For starters, once many companies get big, they can slow their growth rate. Walmart is certainly huge, with a recent one market value of $542 billion. And it’s also the largest employer in the US, recently employing 2.1 million people worldwide and nearly 1.6 million domestically. (The U.S. military recently had fewer than 1.5 million active-duty members.)
So, should you invest in Walmart? It depends on your view of its valuation and future prospects – and your general investment preferences. If you prefer growth stocks, look elsewhere. (Walmart is do grow. In the first quarter of fiscal 2025, revenues increased 6% year over year, while operating income rose almost 10%.)
However, Walmart doesn’t appear to be a bargain right now, with a recent forward-looking price-to-earnings (P/E) ratio of 28, above the five-year average of 23. You’ll likely find more attractive opportunities elsewhere. You can even just invest in an S&P 500 index fund and do very well.
Should You Invest $1,000 in Walmart Now?
Consider the following before buying stock in Walmart:
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Selena Maranjian has positions at Apple. The Motley Fool has positions in and recommends Apple and Walmart. The Motley Fool has one disclosure policy.
If you invested $10,000 in Walmart stock ten years ago, this is how much you would have today was originally published by The Motley Fool
