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On Monday, Raymond (NSE:RYMD) James reaffirmed its Outperform rating for Walmart stock (NYSE:WMT), maintaining a price target of $105.00. The endorsement comes after Walmart’s first-quarter results for fiscal year 2026 surpassed expectations, and the company confirmed its full-year guidance amidst ongoing economic and tariff-related uncertainties. According to InvestingPro data, 17 analysts have recently revised their earnings estimates upward, with analyst consensus remaining strongly bullish at 1.51 (Strong Buy).
Walmart’s recent performance has demonstrated resilience, with the company benefiting from its diverse sourcing, strategic inventory management, and a robust model that integrates eCommerce and supply chain efficiencies. According to Raymond James, the retail giant’s ability to adapt to a dynamic market environment is supported by these factors.
The company has also been focusing on high-margin revenue streams, which have shown significant year-over-year growth. Advertising revenue increased by 50%, membership by 15%, and marketplace sales also saw strong growth, contributing to Walmart’s profitability. A notable achievement highlighted by Raymond James is the profitability of Walmart’s eCommerce operations, both in the U.S. and globally, for the first time. This milestone is seen as a crucial step towards long-term EBIT margin expansion. InvestingPro data reveals impressive fundamentals, with trailing twelve-month revenue reaching $685.09 billion and EBITDA of $42.5 billion.
Despite the general concern over tariffs affecting the retail sector, Raymond James views Walmart’s scale, flexibility, and pricing strategy as key advantages that set the company apart from competitors. Looking ahead, the firm anticipates that Walmart will continue to experience operating income growth at a rate surpassing its sales growth, driven by a shift in profit mix towards more digital, data, and automation-led initiatives. InvestingPro analysis shows the company has maintained dividend payments for 53 consecutive years, though current trading multiples suggest the stock may be overvalued relative to its Fair Value. For deeper insights into Walmart’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Walmart’s first-quarter results for fiscal year 2026 exceeded expectations, with the company surpassing its forecasts for net sales and adjusted earnings before interest and taxes (EBIT). The U.S. comparable sales growth of 4.5% also outperformed consensus estimates, and the adjusted earnings per share (EPS) of $0.61 exceeded expectations by $0.03. Walmart’s e-commerce sector turned profitable globally for the first time, a milestone noted by several analysts. Despite ongoing challenges such as tariffs, Walmart reaffirmed its full-year guidance, indicating confidence in its ability to navigate the current economic landscape.
Analysts from Raymond James, Bernstein, RBC Capital Markets, BMO Capital Markets, and KeyBanc Capital Markets all maintained positive ratings on Walmart, with price targets ranging from $102 to $110. Raymond James highlighted Walmart’s strategic advantages, such as a diversified sourcing approach and strong e-commerce operations. Bernstein and BMO Capital Markets underscored the retailer’s resilience amidst macroeconomic uncertainties. RBC Capital Markets noted Walmart’s ability to handle tariff challenges better than competitors, while KeyBanc Capital Markets emphasized Walmart’s market share expansion in the grocery sector.
Overall, these developments suggest a positive outlook from analysts on Walmart’s long-term growth potential, despite the potential volatility due to tariffs. The company’s strategic initiatives in digital and e-commerce sectors are seen as key drivers for future profitability.
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