Why is Walmart considered a tech company now?

Walmart is leveraging new technologies to enhance delivery speed and automate operations, signaling its shift towards a tech-centric business model.

What makes DR Horton a good housing investment?

DR Horton targets the affordable housing sweet spot and is expected to benefit from a rejuvenating housing market, while also paying dividends.

How is Walmart attracting a broader customer base?

Walmart is successfully attracting both low-income and high-income customers, expanding its market reach and sales potential.

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Walmart's Tech Pivot: Is It Still a Buy?

4 Dec

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Summary

Walmart leverages technology for faster delivery and automated fulfillment.
Walmart attracts both low and high-income customers, expanding its reach.
DR Horton targets the housing market sweet spot with affordable prices.

Walmart's Tech Pivot: Is It Still a Buy?

Walmart is demonstrating a successful pivot to new technologies, evident in its move to the Nasdaq and enhanced delivery capabilities. The company now boasts 30% of orders delivered within three hours and 50% of fulfillments automated, contributing to expanding margins and market share gains. Management's forward-looking strategy suggests continued growth, making it a compelling investment.

Furthermore, Walmart's appeal is broadening across income levels. It is attracting not only its traditional low-income customer base but also higher-income individuals, indicated by the sale of premium products. This diverse customer engagement enhances its market resilience.

Separately, DR Horton is viewed as a strong play on a recovering housing market. Despite potential rate fluctuations, the homebuilder has consistently met expectations, even while offering mortgage buy-downs. Its average sales price of $378,000 positions it favorably within the market's affordable segment.