Walmart (WMT) stock is extending gains ahead of the multinational retail giant’s Q1 earnings set to be released before the market opens on May 20.
Consensus is for the NYSE-listed behemoth to record mid-single-digit growth in revenue to about $174 billion on $0.65 per share of earnings (EPS), up roughly 6.5% on a year-over-year basis.
Heading into the first-quarter release, Walmart stock is up nearly 20% versus the start of this year.
Where Options Data Suggests Walmart Stock Is Headed
While Walmart has already been a star performer in 2026, the options market believes it will rally further after its Q1 earnings on Wednesday.
According to Barchart, the put-to-call ratio on contracts expiring May 22 sits at 0.51x, signaling a bullish skew, with the upper price set at nearly $140, indicating WMT stock could be trading more than 4% above current levels after the quarterly print.
Investors should also note that Walmart’s technicals also point to continued momentum ahead. The retailer sits firmly above its key moving averages (MAs) with an RSI in the early 60s, substantiating a strong uptrend.
A 0.74% dividend yield makes WMT even more attractive as a long-term holding in 2026.
Is WMT Shares’ Premium Multiple Justified?
Based on 13 distinct technical indicators, Barchart also currently holds a “100% BUY” opinion on Walmart shares, reinforcing that momentum remains in favor of the bulls.
Historically (over the past 16 years), the Bentonville-headquartered behemoth has closed both May and June in the green, a seasonal pattern that makes it just as compelling for the short-term traders.
At 45x forward earnings, WMT’s valuation may look stretched, but management’s commitment to AI-driven automations and the high-margin advertising business serves to justify that premium.
Finally, Walmart’s focus on grocery means it’s better protected against a potential geopolitics-driven hit to consumer sentiment than its peers, including Target (TGT).
Wall Street Remains Bullish on Walmart
Wall Street analysts also remain bullish on WMT shares for the remainder of 2026.
According to Barchart, the consensus rating on Walmart sits at “Strong Buy,” with price targets going as high as $150, indicating potential upside of nearly 12% from here.
