With a market cap of $979.9 billion, Walmart Inc. (WMT) is a people-led, technology-powered global omnichannel retailer that helps customers save money through its stores, websites and mobile platforms. With approximately 10,900 stores across 19 countries, 280 million weekly customers and members, and fiscal 2026 revenue of $713 billion, the company employs around 2.1 million associates worldwide.
Shares of the Bentonville, Arkansas-based company have outperformed the broader market over the past 52 weeks. WMT stock has increased 20.8% over this time frame, while the broader S&P 500 Index ($SPX) has gained 11.1%. Moreover, shares of the company are up 10.9% on a YTD basis, compared to SPX's 10.7% rise.
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The retail giant stock has outpaced the State Street Consumer Staples Select Sector SPDR ETF's (XLP) 16.9% return over the past 52 weeks.
Walmart shares tumbled 9.2% on Aug. 20 despite beating earnings expectations and raising its fiscal 2027 outlook, as investors questioned the sustainability of profit growth because much of the 96-basis-point gross margin expansion to 25.4% was driven by potentially nonrecurring tariff refunds. Concerns were compounded by a 125-basis-point drag on U.S. comparable sales from pharmacy regulation, pressure on lower-income consumers, and adjusted operating expense deleverage of 40 basis points, reflecting higher insurance claims, healthcare costs and depreciation.
Although Q2 2027 adjusted EPS rose 19.1% to $0.81 on revenue of $187.9 billion, and Walmart raised its fiscal 2027 adjusted EPS forecast to $2.80 - $2.87, investors remained cautious about margin sustainability and rising capital expenditure, now expected to reach 4% of net sales versus 3.5% previously.
For the fiscal year ending in January 2027, analysts expect WMT's adjusted EPS to grow 8.7% year-over-year to $2.87 . The company's earnings surprise history is promising. It beat the consensus estimates in each of the last four quarters.
Among the 39 analysts covering the stock, the consensus rating is a "Strong Buy." That's based on 30 "Strong Buy" ratings, six "Moderate Buys," and three "Holds."
This configuration is slightly more bullish than three months ago, with 29 analysts suggesting a "Strong Buy."
On Oct. 28, Evercore ISI lowered its price target on Walmart to $125.
The mean price target of $129.13 represents a 4.6% premium to WMT's current price levels. The Street-high price target of $155 suggests a 25.5% potential upside.
On the date of publication, Sohini Mondal did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
