Walmart’s Stock Surges Ahead: A Closer Look at Its Recent Performance
Bentonville, Arkansas-based Walmart Inc. (WMT) is a retail powerhouse, operating discount stores, supercenters, and neighborhood markets. The company boasts a market cap of $660.7 billion and offers a wide array of products including apparel, housewares, electronics, books, and more.
Walmart’s Remarkable Growth Against Market Trends
WMT shares have significantly outperformed the broader market over the past year, gaining 50.2% compared to the S&P 500 Index’s (SPX) 31.1% rise. Notably, in 2024, WMT has surged 56.9%, while SPX has seen a more modest 19.8% increase year-to-date.
Better Performance than Retail Sector Peers
Also worth noting, WMT’s growth has been particularly impressive when compared to the SPDR S&P Retail ETF (XRT), which has increased by about 22.7% in the last year. On a year-to-date basis, WMT’s returns far exceed the ETF’s 5.3% increase during the same period.
Strong Performance Driven by E-commerce and Memberships
Walmart’s robust market position, its focus on e-commerce, and popular private-label products have propelled its success. With nearly 30 million Walmart+ memberships, the company stands to benefit from increasing holiday spending in both consumer staples and discretionary sectors.
Strong Q2 Results Boost Investor Confidence
After reporting its Q2 results on August 15, WMT shares jumped over 6%. The company posted an adjusted EPS of $0.67, exceeding Wall Street’s expectations of $0.65. Walmart’s revenue reached $169.3 billion, surpassing the forecast of $168.5 billion.
Growth Expectations for the Current Fiscal Year
For the fiscal year ending in January 2025, analysts anticipate WMT’s EPS will rise by 9.9% to $2.44 on a diluted basis. The company has a strong earnings surprise history, having matched or beaten consensus estimates in each of the last four quarters.
Analyst Ratings Signal Strong Buy
Among the 36 analysts monitoring WMT stock, the consensus recommendation is a “Strong Buy,” based on 30 “Strong Buy” ratings, four “Moderate Buys,” and two “Holds.” This is a more favorable outlook compared to last month, which had 29 analysts advocating for a “Strong Buy.”
Price Targets Reflect Positive Outlook
On October 31, Wells Fargo & Company (WFC) analyst Edward Kelly reaffirmed a “Buy” rating on WMT, projecting a price target of $90, suggesting a potential upside of 9.2% from current levels. Meanwhile, the average price target sits at $86.13, indicating a 4.5% premium to WMT’s current price. The highest target of $98 indicates an upside potential of 18.9%.
More Stock Market News from Barchart
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
