RichmondSuper Reports What You Can Learn From The Rise In Walmart And Drop in Boeing Stocks In March 2021

(Via ZEXPR) It’s March 2021, and the market trends are still closely tied with the global pandemic, COVID-19. It will help investors to keep the pandemic in perspective when they set out to buy and sell stocks. Let’s have a look at the Boeing and Walmart stocks. Both have had a fluctuation in March, but not in the same way. 

The fluctuations in the two stocks will seem intuitive when you assess the current situation. You may even be able to predict the future rise or fall of these stocks and many other similar ones correctly. 

But of course, the times can change. We might get the pandemic under control soon, and these stocks can take a different direction. RichmondSuper analyst Nate Robinson takes that possibility into account and encourages you to keep a close eye on both market trends and current affairs to make a well-informed decision about your investments. 

The Boeing Stocks

Many investors believed that after 2020, the pandemic dilemma would improve and air travel will make a comeback. While both the pandemic and the stocks impacted by it show signs of healing, the recovery is slow. 

Wall Street, for instance, has been optimistic about air travel recently. Yesterday, Canaccord Genuity upgraded Boeing from “hold” to “buy”. They believe airlines will continue buying aeroplanes this year after the halt last year. 

RichmondSuper analyst Nate Robinson assesses, “We suggest that even though both air travel and their stocks will recover in the near future, you should not rash with the decision. The free cash flow of Boeing has improved in 2021. But you should remember that with the downward spike of $19.7 billion in 2020, Boeing’s free cash flow is still deep in the red zone.”

He further reiterates how we might see positive cash generation in 2022, but Boeing is not likely to generate cash in this year. The fall of 2.2% in Boeing’s shares today supports this insight. Both the pandemic and the 737 MAX accidents have taken a toll on Boeing stocks. 

Even though the 737 MAX aeroplanes are recertified to fly again, Boeing might be looking at years of recovery. But we can say that for Boeing, the worst might be over. In some time, the Boeing shares might climb up again. But for now, it will be wise to stay away from them. 

The Walmart Stocks

Last month, the Walmart stocks were unexciting. But in March, they have hiked up by 6% and continue to look strong. So why is Walmart a different story than Boeing? The answer is simple. You just need to think about what people prioritize in the pandemic situation.

RichmondSuper analyst Nate Robinson reports, “People continue to spend on food, personal hygiene products, and essential household items more than ever before. There was a particularly high demand for these products in the midst of the pandemic, and it still hasn’t waned.” 

As a result, Walmart’s shares soared as millions of people prepared to stay home for extended periods of time. Their e-commerce sales also continue to do very well with an improvement of 69%. The retailer giant enjoys a good position in the market because it could meet the most pressing demands of the global pandemic. 

If you’re wondering about investing in Walmart shares, we can tell you that Walmart is a safe bet. Many people fear an impending recession. But even if that happens and the world’s economy goes downhill, retail stores like Walmart might fare better than other businesses. They provide necessities that people will continue to demand. 

With that in mind, you should also know that Walmart is a gigantic business. And most businesses of that size have slow growth. A large retail company like Walmart can’t have a rapid growth in sales, despite the circumstances. 

The recent debut of Walmart+ might speed up the growth of Walmart to some extent if consumers respond favourably. The launch of Walmart+ also shows that Walmart wants a head-to-head battle with Amazon in another aspect. We might see the impact of the battle’s outcome on the shares of Walmart. 

The Takeaway

We can say that both Walmart and Boeing have taken a predictable turn this month. An insight into both these stocks will help you learn about the trends of the stock market and the impact that current affairs, politics, untoward accidents, and product innovation have on it. 

Disclaimer: Our content is intended to be used for informational purposes only.

It is very important to do your own research before making any investment based on your own personal circumstances.

You should take independent financial advice from a professional in connection with, or independently research and verify any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.