Truist Securities reiterates Buy rating on Walmart stock, maintains $111 target

Investing.com - Truist Securities has reiterated its Buy rating on Walmart (NYSE:WMT) stock with a price target of $111.00, citing the retailer’s continued strong sales performance despite its massive size. The retail giant, currently trading near its 52-week high with a market capitalization of $816 billion, maintains a "GOOD" financial health score according to InvestingPro analysis.

The retail giant reported a 4.6% increase in U.S. comparable sales, representing $5.5 billion in dollar terms. This growth contributes to Walmart’s impressive total revenue of $685 billion in the last twelve months. Sam’s Club also demonstrated robust performance with comparable sales growth of nearly 6%, while international operations achieved mid-single-digit sales growth despite foreign exchange pressures, reaching 10% growth on a constant currency basis.

Walmart’s ancillary revenue streams continue to expand rapidly, with Walmart Connect, the company’s advertising business, growing by 31% in the U.S. market. The quarter was impacted by higher self-insurance claims, which Truist estimates affected earnings by approximately $0.04 per share.

Despite these insurance-related costs, Walmart raised its full-year sales guidance while maintaining its projection for operating income (EBIT) growth. This adjustment reflects management’s confidence in the company’s ongoing business momentum.

Truist Securities views Walmart favorably due to its market leadership position and its rare combination of offensive and defensive characteristics in a mega-cap stock, making it an attractive investment opportunity in the current market environment. The company has maintained dividend payments for 53 consecutive years, demonstrating remarkable stability. For deeper insights into Walmart’s valuation and 12+ additional exclusive ProTips, visit InvestingPro.

In other recent news, Walmart reported its second-quarter earnings for fiscal year 2026, which included a mixed performance in terms of expectations. The company posted earnings per share (EPS) of $0.68, which fell short of the anticipated $0.74. This represents an 8.11% negative surprise. However, Walmart’s revenue reached $177.4 billion, surpassing the forecast of $174.4 billion. BMO Capital maintained its Outperform rating for Walmart and reiterated a price target of $110, noting that the earnings miss included higher general liability claims that were not adjusted for, suggesting underlying earnings were closer to expectations. These developments indicate that while the EPS missed the mark, the revenue performance was stronger than expected.

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