Bentonville, Arkansas-based Walmart Inc. (WMT) operates discount stores, supercenters, and neighborhood markets. With a market cap of $660.7 billion, the company offers merchandise such as apparel, housewares, small appliances, electronics, musical instruments, books, home improvement, shoes, jewelry, toddler, games, household essentials, pets, pharmaceutical products, party supplies, and automotive tools.
Shares of this retail giant have outperformed the broader market considerably over the past year. WMT has gained 50.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 31.1%. In 2024, WMT stock is up 56.9%, surpassing SPX’s 19.8% rise on a YTD basis.
Zooming in further, WMT’s outperformance looks more pronounced compared to SPDR S&P Retail ETF (XRT). The exchange-traded fund has gained about 22.7% over the past year. Moreover, WMT’s gains on a YTD basis outshine the ETF’s 5.3% returns over the same time frame.
Walmart's strong market position and e-commerce investments have driven its performance, alongside its popular private-label offerings. With nearly 30 million Walmart+ memberships and a boost in holiday spending expectations, the retailer is poised for continued success in consumer staples and discretionary sectors.
On Aug. 15, WMT shares closed up more than 6% after reporting its Q2 results. Its adjusted EPS of $0.67 topped Wall Street expectations of $0.65. The company’s revenue was $169.3 billion, topping Wall Street forecasts of $168.5 billion.
For the current fiscal year, ending in January 2025, analysts expect WMT’s EPS to grow 9.9% to $2.44 on a diluted basis. The company’s earnings surprise history is impressive. It beat or matched the consensus estimate in each of the last four quarters.
Among the 36 analysts covering WMT stock, the consensus is a “Strong Buy.” That’s based on 30 “Strong Buy” ratings, four “Moderate Buys,” and two “Holds.”
This configuration is more bullish than a month ago, with 29 analysts suggesting a “Strong Buy.”
On Oct. 31, Wells Fargo & Company (WFC) analyst Edward Kelly maintained a “Buy” rating on WMT with a price target of $90, implying a potential upside of 9.2% from current levels.
The mean price target of $86.13 represents a 4.5% premium to WMT’s current price levels. The Street-high price target of $98 suggests an upside potential of 18.9%.
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 is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
