TLDR
- Walmart stock hit an all-time high of $134.71, up 37% over the past year
- Options traders expect up to a 5% swing this week following Thursday’s earnings report
- Q1 revenue is expected at $174.94 billion, up ~6% year-over-year; EPS est. at 66 cents
- E-commerce sales are projected to have grown around 22% in the quarter
- Analyst price targets average just above $140, with 10 out of 11 analysts rating the stock a Buy
Walmart stock touched a new all-time high of $134.71 on Monday, as investors position ahead of the retailer’s first-quarter earnings report due Thursday morning before the opening bell.
The stock is up roughly 20% since January 1, making it one of the stronger performers among large-cap retailers so far this year.
Based on current options pricing, traders are pricing in a move of up to 5% in either direction by the end of the week. On the upside, that would push WMT above $139 — past its February record. On the downside, a 5% drop would take it below $127.
Thursday’s report is the first earnings release under new CEO John Furner, who took over in February. The call will give Furner a chance to lay out his priorities for the company.
Wall Street expects first-quarter revenue of $174.94 billion, up nearly 6% year-over-year, according to Visible Alpha. Adjusted EPS is forecast at 66 cents, up 5 cents from the same quarter a year ago.
Comparable store sales are expected to have grown 3.8%, while e-commerce sales are projected to have climbed around 22%.
What Analysts Are Saying
Analyst sentiment is firmly in Walmart’s corner. Of the 11 analysts tracked by Visible Alpha, 10 have a Buy rating and one is neutral. The average price target sits just above $140.
UBS is maintaining a Buy rating with a $147 target, while TD Cowen raised its target to $150, also with a Buy. KeyBanc reiterated an Overweight rating, pointing to market share momentum.
Oppenheimer expects a solid quarter but thinks Walmart will likely keep full-year guidance unchanged, given that elevated fuel costs could persist.
Morgan Stanley says Walmart is well-positioned to benefit from consumers trading down as inflation squeezes household budgets.
The Inflation Angle
Rising prices have been a quiet tailwind for Walmart. As more Americans look for value, foot traffic and basket sizes have held up better at Walmart than at some higher-priced rivals.
This quarter comes as inflation and fuel costs remain elevated, in part due to the ongoing Iran war. Results from Walmart and other retailers this week may offer a clearer picture of how consumers are coping.
Walmart has raised its dividend for 31 consecutive years. The stock trades at a P/E ratio of 49.11, which InvestingPro flags as overvalued relative to its Fair Value estimate.
The company’s market cap currently sits at $1.07 trillion.
🚨 Our MAY Stock Picks Are Live!
A new month means new opportunities. Our analysts have just released their top stock picks for May, highlighting companies with strong momentum that rank highly on our KO Score algorithm. We’re also now sharing trade ideas for both long-term and short-term investors, giving you more ways to spot potential opportunities in the market.
Sign up to Knockout Stocks today and get 50% off to unlock the full list and see which stocks made the cut.
Use coupon code Special50 for your exclusive discount!
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
