It can be interesting to play simulation games with the stock market. We probably all know that the answer to the question “What if I had bought $10,000 worth of stock in Apple 10 years ago?” will be a huge sum. Indeed, you would have more than about $95,000 — and more than about $100,000 if you had dividends reinvested.
However, for many other businesses, the answer is no such guarantee. So here’s a look at where you would be today if you had invested $10,000 in stocks. Walmart (NYSE:WMT) a decade ago.
The answer is less interesting: you would have around $29,500 – or around $32,800 if you had reinvested the dividends (as of June 17). That probably still seems like a respectable gain, but it actually lags behind the broader 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 shares have lagged the S&P 500 over the past five and 15 years as well.
Which give? Well, on the one hand, many companies, once they experience considerable growth, may see their growth rate slow down. Walmart is certainly huge, with a recent market value of $542 billion. And it’s also the largest employer in the United States, with 2.1 million employees worldwide and nearly 1.6 million nationally. (The U.S. military recently had fewer than 1.5 million members on active duty.)
So, should you invest in Walmart? It depends on your view of its valuation and future prospects, as well as your overall investment preferences. If you favor growth stocks, look elsewhere. (Walmart East growing, however. During the first quarter of fiscal 2025, revenue increased 6% year-over-year, while operating profit increased almost 10%.)
Walmart doesn’t appear to be a bargain at the moment, with a forward price-to-earnings (PE) ratio of 28, higher than its five-year average of 23. You’ll likely find better opportunities elsewhere. You could even just invest in an S&P 500 index fund and get really good results.
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Selena Maranjian has positions at Apple. The Motley Fool ranks and recommends Apple and Walmart. The Mad Motley has a disclosure policy.
If You Invested $10,000 in Walmart Stock 10 Years Ago, Here’s How Much You’d Have Today was originally published by The Motley Fool
