This Blue-Chip Dividend Stock Is Now Part of the Trillion-Dollar Club. Is It Still a Buy Here?

Industry Overview - Global retail e-commerce sales are projected to reach approximately $6 trillion in 2024 and are expected to increase to nearly $8 trillion by 2028, representing a 31% growth over the next few years [1] - Online shopping is anticipated to account for over 23% of all retail purchases by 2025, with this share expected to continue rising throughout the decade [1] Company Performance - Walmart has achieved a significant milestone by surpassing a $1 trillion market capitalization, joining a select group of companies primarily composed of Big Tech firms [2] - Walmart's e-commerce sales have seen a robust growth of over 27%, contributing to its overall sales strength, while its extensive store network supports efficient fulfillment and reliable delivery [3] - Over the past 52 weeks, Walmart's stock has increased by approximately 28%, with a year-to-date rise of 15% [5] Financial Metrics - In fiscal Q3, Walmart reported revenue of $179.5 billion, reflecting a year-over-year increase of 5.8% [9] - Global e-commerce sales grew by 27%, driven by store-fulfilled pickup and delivery services, as well as marketplace gains [9] - The global advertising business surged by 53%, with Walmart Connect in the U.S. increasing by 33% [9] - Membership and other income rose by 9%, including a notable 16.7% growth in membership income [9] Valuation Insights - Walmart's forward price-to-earnings (P/E) ratio stands at approximately 42x, significantly higher than the sector average of around 16x, indicating that investors are willing to pay a premium for consistent earnings growth [8]