There’s more evidence that Walmart continues to fight hard on the pricing front.
The retailer was recently cheaper, on average, than fellow Barron’s Next 50 stock Amazon.com (AMZN) in 8 of 10 categories studied by Guggenheim Securities, according to a Tuesday note that reflected prices as of mid-May. (Guggenheim checked prices on 10 baskets of 10 items.)
In some cases, Walmart (WMT) — which has recently been seen cutting prices aggressively in some markets — was substantially cheaper: In snacks, drinks and household essentials, for example, which included items including popcorn, Pepsi and Tide pods, Walmart (with free 2-day shipping) came in cheaper on 7 items and 21% cheaper in total than Amazon Prime.
Across all 100 items, according to Guggenheim, Walmart was 4% cheaper than Amazon. The companies were roughly tied in the baby and toddler category, while Amazon was 2% cheaper in appliances, winning on 6 of 10 items.
Walmart, shares of which are off about 13% this year, is scheduled to report fiscal Q1 financial results Thursday morning. Wall Street is looking for quarterly EPS of $1.12, according to FactSet’s mean of 29 analyst estimates.
Some observers believe the company is poised to report results that signal improved digital performance, worries about which hurt the stock a quarter ago.
Guggenheim’s estimate is in line with the Street. The analysts currently have a “buy” rating and a $100 price target, 17% above current levels, on the stock. (They also see gross margins ticking down slightly from year-ago levels even as revenue is estimated to rise 4%.)