This month, Forbes featured an article about how Wal-Mart is fairing in the e-commerce space. Well worth a read and shows that Wal-Mart is starting to grow its online business.
When I wrote about investing in the e-commerce secular trend for Canadian MoneySaver last January, I mentioned Wal-Mart as a potential value play in the e-commerce space.
“Although Wal-Mart is …not at core an e-commerce company… it remains interesting. It is making a big bet on e-commerce and indications are that its online sales are growing considerably faster than its off-line sales, notwithstanding some hiccups along the way. It sells about one-sixth as much online as Amazon does, at $14B per year, but those sales are starting to grow fairly rapidly. With its purchase of Jet.com, Wal-Mart’s online presence should grow even faster. As a bonus, Wal-Mart pays a 2.86% dividend, has a much lower P/E ratio (about 16) than most “pure plays” and fared better than most businesses during the financial crisis. This could be a good value play.”
Here is Wal-Mart’s chart showing year-to-date total return and stock price performance. Pretty impressive:
My full article from Canadian MoneySaver is available for free here. (Note: below the article link I’ve provided some information about an e-commerce ETF for emerging markets that might be worth a further look. I also wrote another blog post that discusses a second ETF that lets investors invest in e-commerce called IBUY.)