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On Friday, RBC Capital Markets reiterated its positive stance on Walmart Inc. (NYSE:WMT), maintaining an Outperform rating and a price target of $102.00. The affirmation comes after Walmart’s Investment Community Meeting held on April 9, 2025. The retail giant, currently trading at $98.50, has demonstrated remarkable market performance with a 52% return over the past year, according to InvestingPro data.
Steven Shemesh from RBC Capital Markets provided insights into the company’s performance and outlook. According to Shemesh, Walmart’s recent financial results were as expected, without significant surprises. The analyst highlighted Walmart’s ability to handle the challenges posed by tariffs better than many competitors. With annual revenue reaching $685 billion and a market capitalization of $790 billion, Walmart remains a dominant force in consumer staples retail. InvestingPro analysis shows the company has maintained dividend payments for an impressive 53 consecutive years, demonstrating consistent financial strength.
RBC Capital adjusted its second-quarter constant currency net sales growth estimate slightly downwards from 5.1% to 4.9%, while the adjusted earnings per share (EPS) estimate for the same period was revised upward from $0.72 to $0.80. These adjustments reflect a fine-tuning of expectations following the Investment Community Meeting.
Looking further ahead, the firm’s projections for Walmart’s performance in the 2025 and 2026 fiscal years remain mostly unchanged. RBC Capital anticipates constant currency net sales growth of 4.3% and 5.0% for the respective years, with a slight adjustment in the latter from 5.1% previously forecasted. The adjusted EPS estimates for 2025 and 2026 are held steady at $2.64 and $3.01, respectively.
The price target of $102 is based on approximately 34 times the firm’s adjusted EPS estimate of $3.01 for the fiscal year 2027. This valuation reflects RBC Capital’s confidence in Walmart’s long-term earnings potential and its strategic position in the retail sector amidst economic headwinds. Currently trading at a P/E ratio of 42.18x, InvestingPro analysis indicates the stock is trading above its Fair Value. For deeper insights into Walmart’s valuation and access to 12 additional ProTips, including detailed financial health scores and comprehensive analysis, consider exploring InvestingPro’s exclusive research report.
In other recent news, Walmart Inc. reported a strong first-quarter performance, with earnings per share (EPS) surpassing expectations, driven by a 4.5% increase in U.S. comparable sales. This quarter marked a significant milestone as Walmart’s global e-commerce segment turned profitable for the first time. Analysts from TD Cowen noted that Walmart’s competitive pricing strategy contributed to its market share gains and overall margin improvements, despite challenges like tariffs and liability claims. BMO Capital Markets maintained an Outperform rating, emphasizing Walmart’s business momentum and potential for market share expansion in a volatile retail environment. KeyBanc Capital Markets also retained an Overweight rating, highlighting Walmart’s resilience amid a challenging economic landscape, with a $105 price target. Goldman Sachs reiterated a Buy rating, pointing to Walmart’s strategies to mitigate economic uncertainties and maintain earnings growth. Truist Securities increased its price target to $111, praising Walmart’s robust quarter and market share growth. These developments underscore Walmart’s strategic initiatives and adaptability in the current retail climate.
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