Trump announces trade deal with EU following months of negotiations
On Friday, Raymond (NSE:RYMD) James analyst Bobby Griffin maintained an Outperform rating and a $105.00 price target on Walmart (NYSE:WMT) stock, a prominent player with a market capitalization of $784 billion. Griffin’s positive stance comes after Walmart’s first-quarter results for fiscal year 2026 surpassed expectations, building on the company’s impressive 52% stock return over the past year. The company also reaffirmed its full-year guidance, signaling confidence despite the challenges posed by an uncertain macroeconomic landscape and ongoing tariff concerns. According to InvestingPro analysis, Walmart maintains a "GOOD" financial health score, reflecting its strong market position.
Walmart’s robust performance can be attributed to several strategic advantages, including a diversified sourcing approach, a focus on replenishable inventory, and a strong footing in both e-commerce and supply chain operations. With annual revenue reaching $685 billion, the company’s commitment to high-margin revenue streams, such as its growing advertising business, which saw a 50% year-over-year increase, and membership services, which grew by 15% year-over-year, contributed to its success. Additionally, Walmart’s marketplace continues to thrive, further enhancing its profitability. InvestingPro data reveals the company operates with a moderate level of debt while maintaining strong returns.
A particularly noteworthy achievement highlighted by Griffin was Walmart’s e-commerce sector turning profitable in the U.S. and globally for the first time. This milestone is seen as a significant contributor to the potential for long-term EBIT margin growth.
Despite the broader retail sector grappling with the impact of tariffs, Griffin believes that Walmart’s scale, nimbleness, and pricing strategies set it apart from competitors. Looking ahead, Raymond James expects Walmart to continue its trajectory of operating income growth outpacing sales growth, driven by a shift towards more digital, data-centric, and automation-enhanced initiatives.
In other recent news, Walmart Inc. reported strong first-quarter results that exceeded its own forecasts for net sales and adjusted earnings before interest and taxes (EBIT), showcasing a 4.0% increase in constant currency net sales growth and a 3.0% rise in adjusted constant currency EBIT growth. The company also achieved a milestone in ecommerce profitability for the first time, a significant development noted by BMO Capital Markets. Analysts from Bernstein and RBC Capital Markets have maintained their Outperform ratings for Walmart, with price targets of $108 and $102, respectively, highlighting confidence in the company’s resilience amid economic challenges, including tariffs.
Additionally, KeyBanc Capital Markets reiterated their Overweight rating with a $105 target, emphasizing Walmart’s ability to perform well in a challenging economic environment, supported by growth in transactions and e-commerce expansion. Goldman Sachs also reaffirmed a Buy rating with a $101 target, pointing to Walmart’s strategies to manage the uncertain environment and maintain full-year guidance. Despite potential volatility from tariffs, Walmart’s management has upheld its fiscal year 2026 guidance, with analysts expressing confidence in the company’s long-term growth prospects.
RBC Capital adjusted its second-quarter estimates slightly, reflecting a fine-tuning of expectations, while maintaining steady projections for the 2025 and 2026 fiscal years. BMO analysts expressed confidence in Walmart’s ability to adapt to market conditions, seeing it as a potential major share gainer in the retail sector. Overall, these recent developments underscore Walmart’s strong performance and strategic positioning within the competitive retail landscape.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.