Bentonville, Arkansas-based Walmart Inc. (WMT) operates discount stores, supercenters, and neighborhood markets. With a market cap of $870.1 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. The retail giant is expected to announce its fiscal second-quarter earnings for 2027 before the market opens on Thursday, Aug. 20.
Ahead of the event, analysts expect Walmart to report a profit of $0.74 per share on a diluted basis, up 8.8% from $0.68 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
For the full year, analysts expect Walmart to report EPS of $2.89, up 9.5% from $2.64 in fiscal 2026. Its EPS is expected to rise 13.2% year over year to $3.27 in fiscal 2028.
WMT stock has underperformed the S&P 500 Index’s ($SPX) 16.5% gains over the past 52 weeks, with shares up 13.3% during this period. However, it outperformed the State Street Consumer Staples Select Sector SPDR ETF’s (XLP) 1.9% gains over the same time frame.
Walmart’s stock is facing headwinds from macro pressures, including near $4/gallon fuel costs that reduced Q1 operating income by $175 million, plus slower spend-per-visit growth at 1.1% and warnings of persistent inflation ahead. These cost and consumer drags have created technical pressure on the shares despite solid top-line revenue growth of 7.3%, supported by expanding eCommerce, a recovery in general merchandise, and higher-margin revenue streams like advertising and membership fees.
Analysts’ consensus opinion on WMT stock is bullish, with a “Strong Buy” rating overall. Out of 39 analysts covering the stock, 29 advise a “Strong Buy” rating, six suggest a “Moderate Buy,” and four give a “Hold.” WMT’s average analyst price target is $140.08, indicating a potential upside of 29.2% from the current levels.
