Walmart (NYSE: WMT) stock had a banner week last week after the retail giant delivered strong first-quarter results. It posted comparable sales growth of 3.8% in its core Walmart U.S. division, gaining market share at a time when much of the retail sector is struggling with inflation and a shift in consumer spending to services like travel and restaurants.
Walmart also delivered solid operating income growth in all three of its operating segments, and growth in areas like e-commerce and advertising also impressed, up 21% and 24%, respectively. The stock finished up 7% Thursday on the news.
Wall Street also took notice of the strong results, with several analysts upgrading their ratings or raising their price targets on the news. One of them was BMO Capital Markets.
Image source: Walmart.
BMO sees more gains for Walmart
BMO analyst Kelly Bania raised her price target on Walmart from $65 to $75 on the report, implying 16% upside in the stock.
Bania noted that the retailer beat expectations by a wide margin and a better-than-expected gross margin result in all three of its business segments.
She expects the company’s momentum to continue as it narrows its e-commerce losses, improves its gross margins, and benefits from its pricing power.
Is Walmart stock a buy?
Walmart is executing as well as it has in a long time, as the company has responded to the threat from Amazon by building out a robust e-commerce business, including thousands of grocery pickup stations that have reinforced its leadership in grocery sales.
Additionally, its advertising is growing rapidly and its core business is strong. Walmart looks well positioned to deliver solid returns for investors.
Should you invest $1,000 in Walmart right now?
Before you buy stock in Walmart, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Walmart wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $566,624!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.
See the 10 stocks »
*Stock Advisor returns as of May 13, 2024
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Jeremy Bowman has positions in Amazon. The Motley Fool has positions in and recommends Amazon and Walmart. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
