Walmart’s Stock Surges: Key Insights on Its Impressive Performance
Walmart Inc. (WMT), based in Bentonville, Arkansas, stands as a prominent player in global retail, operating stores and e-commerce platforms in 19 countries. Renowned for its everyday low prices, the company functions through Walmart U.S., Walmart International, and Sam’s Club and boasts a notable market cap of $792.5 billion.
Stock Performance Compared to the Market
In terms of stock performance, Walmart has significantly outperformed the wider market in the past year. Shares have surged by 78.7% over this period, while the S&P 500 Index ($SPX) saw an increase of 23.3%. Year-to-date in 2025, WMT stock is up 9.2%, which again eclipses the SPX’s rise of 3.2%.
Walmart vs. Retail ETFs
Analyzing further, Walmart has also outperformed the SPDR S&P Retail ETF (XRT), which has gained about 16.3% in the last year and 2.6% so far in 2025.
Driving Forces Behind Growth
The remarkable rise in Walmart’s stock can be attributed to its growing e-commerce segment. This part of the business is expected to become profitable within the next one to two years, spurred by digital advertising and its online marketplace. Additionally, Walmart has successfully captured market share from high-income households seeking quality and value, reinforcing its position as an industry leader.
Recent Earnings Report and Expectations
On Nov. 19, Walmart released its third-quarter earnings, prompting a 3% jump in shares. Strong performance on both revenue and earnings exceeded market expectations. The company also upgraded its guidance for fiscal 2025, estimating adjusted earnings per share (EPS) to be between $2.42 and $2.47.
For the current fiscal year, which wraps up in January 2025, analysts are predicting an 11.7% growth in EPS to $2.48 on a diluted basis. Notably, Walmart has consistently outperformed consensus estimates, achieving this feat in each of the past four quarters.
Analysts’ Ratings Overview
Currently, there are 36 analysts covering WMT stock, and the overall opinion is a “Strong Buy.” This rating results from 29 “Strong Buy” ratings, four “Moderate Buys,” and three “Holds.”
Latest Price Target Adjustments
Despite the positive outlook, this consensus shows a slight decrease in bullish sentiment compared to three months ago, when 30 analysts recommended a “Strong Buy.”
On Jan. 21, Morgan Stanley (MS) adjusted Walmart’s price target to $106 from $100 while keeping an “Overweight” rating. The firm highlighted Walmart’s large scale, investment in next-generation retail technology, and its leadership in the market as critical advantages looking ahead to 2025.
The average price target stands at $99.92, indicating a 1.3% premium compared to WMT’s current price. The highest price target of $115 suggests a potential upside of 16.6%.
On the date of publication, Kritika Sarmah did not hold any positions in the mentioned securities. All data provided is for informational purposes. For full disclosure, please refer to the Barchart Disclosure Policy.
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