Founded in 1962, Bentonville-based Walmart Inc. WMT is the world's largest retail corporation by revenue. With a market cap of $520.9 billion, it operates a chain of hypermarkets, discount stores, and grocery stores. With over 4,600 stores in the U.S. and a fast-growing e-commerce business, Walmart's mix of affordability and variety keeps consumers hooked amid rising prices.
Walmart stock has outperformed the broader market over the last year. WMT has gained 29.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 27.5%. In 2024 alone, shares of Walmart rose 23%, surpassing SPX's 11.2% gains on a YTD basis.
Zooming in further, WMT's gain over the past 52 weeks outpaced the Vaneck Retail ETF’s RTH 21.5% returns. Even more impressive, the stock's double-digit YTD gain far exceeds the exchange-traded fund's 8.6% return over the same time frame.
Despite hurdles like a shaky spending climate and disruptions from an early Easter, Walmart’s impressive price action relative to the broader indexes in 2024 stems from a solid Q1 earnings report on May 16. Shares hit a record high after raising its full-year forecast, betting on easing inflation to boost grocery and non-essential sales, marking its biggest one-day gain in four years.
Moreover, the big box retailer's $2.3 billion Vizio acquisition, signaled confidence in scaling Vizio's smart TVs for a lucrative advertising venture, enhancing its competitive edge against rivals.
For the current fiscal year, ending in January 2025, analysts expect WMT to report EPS growth of 7.7% year over year to $2.39. The company's earnings surprise history is robust. It beat or matched the consensus estimate in all of the last four quarters.
In the last reported quarter, Walmart beat analysts' estimates for revenue and profit, driven by strong e-commerce gains, growth in new ventures like advertising, and attracting more high-income shoppers.
The consensus view on WMT has been bullish overall. Among the 30 analysts covering WMT stock, the consensus rating is a “Strong Buy.” That’s based on 21 “Strong Buy” ratings, four “Moderate Buys,” and five “Holds.”
This configuration is slightly more bullish than two months before with 20 analysts suggesting a "Strong Buy."
On May 17, Raymond James analyst Bobby Griffin boosted Walmart's price target by 11.1% to $70, while maintaining a “Buy” rating. Griffin praised Walmart's Q12025 earnings, highlighting strong performance and a favorable fiscal 2025 outlook. Other analysts followed suit, raising their targets and maintaining positive ratings, underscoring Walmart's momentum in higher-margin businesses.
The mean price target of $65.55 indicates a premium of just 1.4% to WMT’s current price levels. The Street-high price target of $71 suggests an upside potential of 9.8%.
On the date of publication, Rashmi Kumari 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.
FAQs
Walmart has a consensus rating of Strong Buy which is based on 24 buy ratings, 4 hold ratings and 0 sell ratings. The average price target for Walmart is $70.92. This is based on 28 Wall Streets Analysts 12-month price targets, issued in the past 3 months.
Is investing in Walmart stock a good idea? ›
From fiscal 2024 to fiscal 2026, analysts expect Walmart's revenue to rise at a CAGR of 4% as its EPS grows at a CAGR of 35%. Its stock still looks reasonably valued at 26 times forward earnings, its dividend offers a decent forward yield of 1.4%, and management has raised the payout annually for 51 consecutive years.
What will Walmart stock be in 10 years? ›
Walmart stock price stood at $65.06
According to the latest long-term forecast, Walmart price will hit $90 by the end of 2024 and then $100 by the middle of 2025. Walmart will rise to $110 within the year of 2027, $125 in 2028, $150 in 2029 and $200 in 2035.
What are the financial projections for Walmart? ›
Walmart is forecast to grow earnings and revenue by 6.5% and 3.8% per annum respectively. EPS is expected to grow by 7.3% per annum. Return on equity is forecast to be 21.5% in 3 years.
What are the analyst ratings for Wal stock? ›
Western Alliance has 21.44% upside potential, based on the analysts' average price target. Is WAL a Buy, Sell or Hold? Western Alliance has a consensus rating of Strong Buy which is based on 12 buy ratings, 1 hold ratings and 0 sell ratings.
Is Walmart good for America analysis? ›
But while some economists credit Wal-Mart's single-minded focus on low costs with helping contain U.S. inflation, others charge that the company is the main force driving the massive overseas shift to China in the production of American consumer goods, resulting in hundreds of thousands of lost jobs and a lower ...
What if I invested $1000 in the S&P 500 20 years ago? ›
2024, the S&P 500 has posted an average annual return of 9.74%, right about in line with its long-term average. Here's how much you would have now if you invested in the S&P 500 20 years ago, based on varying starting amounts: $1,000 would grow to $2,533. $5,000 would grow to $12,665.
Is it better to invest in Walmart or Amazon? ›
Overall, Amazon is growing faster than Walmart, with a 14% year-over-year revenue increase in 2023, and outside of pressure it experienced in 2022, it also usually reports a higher operating margin. Amazon has tailwinds from its many businesses, in particular from its investment in artificial intelligence (AI).
Who is Walmart biggest investor? ›
Largest shareholders include Vanguard Group Inc, BlackRock Inc., State Street Corp, VTSMX - Vanguard Total Stock Market Index Fund Investor Shares, VFINX - Vanguard 500 Index Fund Investor Shares, Geode Capital Management, Llc, Morgan Stanley, Bank Of America Corp /de/, Price T Rowe Associates Inc /md/, and Fmr Llc .
What stock is splitting in 2024? ›
2024 Stock Splits
| Date | Symbol | Company Name |
|---|
| May 30, 2024 | BCDA | Biocardia Inc |
| May 29, 2024 | GV | Visionary Holdings Inc |
| May 28, 2024 | THAR | Tharimmune Inc |
| May 28, 2024 | SINT | Sintx Technologies Inc |
87 more rowsGrowth stocks for next 5 years
| S.No. | Name | CMP Rs. |
|---|
| 1. | Brightcom Group | 10.97 |
| 2. | Rama Steel Tubes | 12.06 |
| 3. | Axita Cotton | 21.62 |
| 4. | One Point One | 55.40 |
23 more rowsInvesting $1,000 In Walmart IPO: Walmart offered shares for $16.50 on Oct. 1, 1970 for its IPO. A $1,000 investment could have purchased 60.61 shares of Walmart stock.
What are the analyst predictions for Walmart stock? ›
Based on short-term price targets offered by 32 analysts, the average price target for Walmart comes to $69.44. The forecasts range from a low of $58.33 to a high of $75.00. The average price target represents an increase of 6.21% from the last closing price of $65.38.
Is Walmart smart to invest in? ›
But don't dismiss Walmart as a potentially excellent long-term holding. The retailer isn't nearly as risky to own as many of its high-growth stock market peers. And it has a good chance of boosting its earnings power over the next several years.
Is Walmart stock a good buy right now? ›
Walmart Inc. - Buy. Zacks' proprietary data indicates that Walmart Inc. is currently rated as a Zacks Rank 2 and we are expecting an above average return from the WMT shares relative to the market in the next few months.
How do customers feel about Walmart? ›
Customer satisfaction with Walmart was lower than the national average for supermarkets in the United States in 2024. Walmart recorded an index score of 74, which was five index points below the average supermarket rating of 79. The index score is based on a 100-point scale.
Is Walmart in a strong or weak financial position? ›
Is Walmart in a strong or weak financial position? Walmart is in a weak financial position. The company's operating margin and return on assets ratios suggest they efficiently convert sales into profit, even though their gross profit margin is lower than Amazon's.
Is Walmart expected to beat earnings? ›
The big-box retailer said it now expects to hit the high end or slightly top its previous full-year guidance. Walmart had expected net sales growth of 3% to 4% and adjusted earnings per share of between $2.23 and $2.37.
What is the customer reputation of Walmart? ›
Walmart Canada has 2.1 star rating based on 179 customer reviews. Consumers are mostly dissatisfied. 14% of users would likely recommend Walmart Canada to a friend or colleague.
WMT is the world's largest retail corporation by revenue. With a market cap of $520.9 billion, it operates a chain of hypermarkets, discount stores, and grocery stores. With over 4,600 stores in the U.S. and a fast-growing e-commerce business, Walmart's mix of affordability and variety keeps consumers hooked amid rising prices.
RTH 21.5% returns. Even more impressive, the stock's double-digit YTD gain far exceeds the exchange-traded fund's 8.6% return over the same time frame. 