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On Tuesday, RBC Capital Markets maintained its Outperform rating and $102.00 price target for Walmart stock (NYSE:WMT), following the retailer’s recent Investment Community Meeting. With a market capitalization of $794 billion and trailing twelve-month revenue of $681 billion, Walmart remains a dominant force in retail. According to InvestingPro data, the stock currently trades at elevated multiples, with a P/E ratio of 40.8x and an EV/EBITDA of 20.2x. The firm’s analyst noted that while Walmart’s management reaffirmed their 2025 guidance, they also indicated that sales trends have been inconsistent and expenses slightly higher than expected. This caution appears warranted, as InvestingPro data shows 17 analysts have recently revised their earnings estimates downward for the upcoming period. Despite these challenges, Walmart maintains strong fundamentals with an InvestingPro Financial Health Score of "GOOD" and has impressively maintained dividend payments for 53 consecutive years.
The analyst at RBC Capital adjusted the second-quarter forecast for Walmart’s consolidated constant-currency (cc) net sales growth down to 4.0%, from the previous 4.4%, aligning with the consensus of 4.0%. The constant-currency operating profit growth estimate for the same period was also revised from 0.9% to 0.5%. Despite these adjustments, the analyst’s estimate for adjusted earnings per share (EPS) for the quarter remains unchanged at $0.59, marginally above the consensus estimate of $0.58.
Looking ahead to the fiscal years 2025 and 2026, RBC Capital’s projections for Walmart’s constant-currency net sales growth are 4.3% and 5.1%, respectively, with the former matching the consensus estimate and the latter exceeding it. The firm also forecasts adjusted EPS of $2.64 for 2025 and $3.01 for 2026, which are both above the consensus estimates of $2.61 and $2.93 for the respective years.
Walmart’s management’s comments regarding variable sales trends and increased expenses come after their Investment Community Meeting held on April 9, 2025. The meeting provided an opportunity for the company to present its financial outlook and strategic priorities to investors and analysts.
RBC Capital’s continued confidence in Walmart is reflected in the reiterated Outperform rating and price target, suggesting the firm believes the stock will perform better than the broader market in the future. The analyst’s commentary and estimates provide a detailed look at the expected financial performance of Walmart over the coming quarters and into the mid-term future. For deeper insights into Walmart’s valuation and growth prospects, investors can access comprehensive analysis and 15 additional ProTips through InvestingPro’s detailed research reports, available as part of their coverage of 1,400+ top US stocks.
In other recent news, Walmart Inc. has issued $4 billion in senior unsecured notes, with various tranches featuring different interest rates and maturities. This move, detailed in a Securities and Exchange Commission filing, is part of Walmart’s strategy to manage its capital structure and fund corporate purposes such as refinancing existing debt and making investments. The issuance involves a pricing agreement with underwriters including BofA Securities, Inc. and Goldman Sachs & Co. LLC. Additionally, Morgan Stanley (NYSE:MS) has maintained its Overweight rating on Walmart stock, highlighting a significant increase in Walmart+ membership, which has reached approximately 27.3 million members. This growth contributes to Walmart’s alternative profit model by fostering customer loyalty and enhancing eCommerce penetration. DA Davidson has also reaffirmed a Buy rating for Walmart, with expectations of market share gains and a comparable sales beat in the upcoming earnings report scheduled for May 15, 2025. In a strategic development, Walmart has partnered with Upstart (NASDAQ:UPST) and OneProgress Services LLC to market consumer lending products, a move that has been positively received by investors. This partnership is expected to leverage Walmart’s extensive customer base, although it may not immediately impact Upstart’s financial results.
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