Union issues are coming up more often for businesses; just look at all the issues coffee giant Starbucks (NASDAQ:SBUX) has been having with unions. Retailer Walmart (NYSE:WMT) is also in the firing line, but it managed to rise modestly in the closing minutes of Thursday’s trading session. Reports note that Walmart was accused by the National Labor Relations Board of threatening employees of a Eureka, California, store who were distributing union-related literature.
Walmart reps also removed similar literature from a break room and reportedly interrogated employees about their connection, or potential connection, to unions. Barring a settlement in advance, Walmart will likely go to trial in May, and after the trial, multiple levels of appeal exist in either direction. While unions have attempted to gain a foothold in Walmart for several decades now, Walmart still remains a wholly non-union shop.
Walmart Slashes Innovation
Another piece of news for Walmart that likely won’t carry good optics with it was its plan to cut innovation. Walmart had a prototypical store of sorts where it could test out new ideas, which it set up in 2017. Dubbed “Store No. 8,” it was designed to serve as a test bed for new tech and new ideas. Walmart recently shut down Store No. 8, splitting up its various functions among other Walmart locations. The idea that technological and marketing advances could come out of a store that’s actively telling people where the garbage bags are and that the baked goods are on sale seems like a bit of a long shot, but only time will tell how well it works.
Is Walmart a Good Stock to Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on WMT stock based on 25 Buys and four Holds assigned in the past three months, as indicated by the graphic below. After a 16.02% rally in its share price over the past year, the average WMT price target of $180.25 per share implies 10.71% upside potential.
