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Walmart shares are hitting record highs. As a result, its P/E (price-to-earnings ratio) is now over 40. That’s high for any retailer that operates on thin profit margins.
However, the elevated P/E reflects the company’s continuing success at attracting customers—both low and middle-income earners. Those consumers remain focused on lowering their spending in the face of persistent inflation. The company is also developing new revenue streams, such as its Walmart+ subscription service, which provides customers with fast home delivery and other rewards.
In addition, this leading retailer has a long history of using technology to monitor its inventories. That lets it avoid costly markdowns for unsold goods as well as product shortages.
Walmart is now adding artificial intelligence tools to better predict shopping trends and speed up its deliveries. A new alliance with the creator of the popular AI chatbot ChatGPT should also spur sales for its online channels.
The company recently announced that John Furner, who heads up its U.S. operations, will succeed Doug McMillon as CEO in early 2026. Mr. Furner is expected to continue with his predecessor’s policies and add to the stock’s 588% gain over the past 10 years.
However, the elevated P/E reflects the company’s continuing success at attracting customers—both low and middle-income earners. Those consumers remain focused on lowering their spending in the face of persistent inflation. The company is also developing new revenue streams, such as its Walmart+ subscription service, which provides customers with fast home delivery and other rewards.
In addition, this leading retailer has a long history of using technology to monitor its inventories. That lets it avoid costly markdowns for unsold goods as well as product shortages.
Walmart is now adding artificial intelligence tools to better predict shopping trends and speed up its deliveries. A new alliance with the creator of the popular AI chatbot ChatGPT should also spur sales for its online channels.
The company recently announced that John Furner, who heads up its U.S. operations, will succeed Doug McMillon as CEO in early 2026. Mr. Furner is expected to continue with his predecessor’s policies and add to the stock’s 588% gain over the past 10 years.
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ALLIED PROPERTIES REAL ESTATE INVESTMENT TRUST, $13.04, is a still a buy. The REIT (Toronto symbol AP.UN; Units o/s: 128.0 million; Market cap: $1.8 billion; TSINetwork Rating: Average; Yield: 5.5%; www.alliedreit.com) will now cut its monthly distributions to unitholders as it continues its plan to sell non-core assets to pay down debt.
H&R REIT, $10.17, is a buy. The trust (Toronto symbol HR.UN; Units outstanding: 262.6 million; Market cap: $2.7 billion; TSINetwork Rating: Average; Dividend yield: 5.9%; www.hr-reit.com) has announced binding agreements with multiple buyers to sell some of its retail and office properties in Canada and the U.S. for $1.5 billion.