Marketplace and Walmart+ drive optimism for Walmart stock

On Wednesday, TD Cowen analysts maintained their positive stance on Walmart Inc. (NYSE:WMT), reiterating a Buy rating with a steady price target of $100.00. The firm's analyst, Oliver Chen, highlighted Walmart's strong performance in general merchandise and its effective execution of the everyday low price strategy.

This optimism appears well-founded, as InvestingPro data shows Walmart has delivered an impressive 70.86% return over the past year, with a substantial market capitalization of $733 billion. Chen also noted the company's significant initiatives in its marketplace, which are resonating well with consumers.

Walmart's growth has been supported by its Walmart+ offerings, which include pickup and delivery services that provide convenience for customers. The analyst pointed out that these initiatives have been meaningful and have helped to attract and retain both lower and higher-end customers.

According to InvestingPro analysis, Walmart maintains a GOOD financial health score, demonstrating strong operational execution. The company's revenue reached $674 billion in the last twelve months, with a steady 5.48% growth rate. The continued expansion of Walmart's third-party marketplace has also been instrumental in driving inventory innovation.

Chen's confidence in Walmart is further bolstered by the company's management of inventory and promotions, as well as the introduction of new fashion items. Despite identifying areas of work-in-progress for other companies like Signet Jewelers (NYSE:SIG), Five Below (NASDAQ:FIVE), Nu Skin Enterprises, and Torrid Holdings, the analyst sees Walmart as a standout for its profitable growth trends.

The price target of $100 set by TD Cowen is based on an earnings estimate of $2.75 per share and a 36x price-to-earnings (P/E) ratio, which implies a potential earnings total return (ETR) of +10%. This target reflects the firm's expectations of Walmart's continued financial performance and market position.

InvestingPro subscribers have access to 13 additional key insights about Walmart, including its 29-year track record of consecutive dividend increases and comprehensive valuation metrics. For deeper analysis, InvestingPro offers an extensive research report covering Walmart's complete financial picture.

Walmart's commitment to providing low prices and high value has been met with a strong consumer response, according to the analyst. These factors, combined with the company's strategic moves, are expected to continue driving engagement and financial success, as supported by TD Cowen's reiterated Buy rating and price target.

In other recent news, Walmart GoLocal, a delivery service, has partnered with IBM (NYSE:IBM) to enhance last-mile delivery for retailers. The integration with IBM's Sterling Order Management system streamlines the delivery process for IBM retail clients who choose Walmart GoLocal. Simultaneously, Walmart has unveiled an updated brand identity to reflect its transformation into a digital-first, omnichannel retailer. The rebranding aims to modernize the company's image while preserving its legacy of affordability and customer service.

In a recent development, Piper Sandler has upgraded Walmart's stock based on a positive sales outlook for 2025. The firm expects consumers to accelerate purchases of big-ticket household items to avoid anticipated price increases due to tariffs. However, Walmart and its fintech partner, Branch Messenger Inc., are currently facing a lawsuit from the Consumer Financial Protection Bureau for allegedly opening costly bank accounts for delivery drivers without their consent.

Lastly, KeyBanc Capital Markets has highlighted Walmart as a top stock pick for 2025, citing its strong market position and consistent dividend payments.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.