Walmart makes run to all-time highs amid coronavirus market plunge

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During the coronavirus market turmoil, the S&P 500 has cratered 25%, while Walmart's stock is in the green, gaining 2%.

During the coronavirus market turmoil, the S&P 500 has cratered 25%, while Walmart's stock is up 2%.

"The unfortunate spread of the COVID-19 virus has created an unprecedented spike in demand for grocery and household products, as consumers prepare for weeks of school closures, work from home and restaurant closures," Credit Suisse research analyst Seth Sigman said in a note to clients following his upgrade of the stock to outperform on Wednesday.

As the coronavirus continues to spread across the United States, stores like Walmart had problems keeping up with the high demand for paper goods leading to empty shelves on March 14, 2020 in Uniondale, New York."We believe the company is well positioned to still deliver on financial targets," Oppenheimer analyst Rupesh Parikh told clients while upgrading the stock to buy.

For Credit Suisse, Walmart isn't just a short-term play here. The firm said it expects this unfortunate period to accelerate "structural changes in consumer shopping," for five or more years, as people are introduced to new shopping methods like online grocery and curb-side pickup.

 

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