Walmart Stock Analysis: Financial Insights, Analyst Ratings, and Investment Outlook

Walmart Inc. (NYSE: WMT) stands as a global retail leader, renowned for its low-price strategy and omnichannel presence. This concise analysis provides key financial metrics, analyst ratings, and investment recommendations, designed for clarity and based on the latest data as of May 29, 2025, as shown in the finance card above.

Key Financial Highlights

Revenue Growth: Fiscal 2025 revenue reached $681B, up 5.4% YoY. Q4 FY2025 (ended January 31, 2025) reported $180.2B, a 3.9% YoY increase, exceeding estimates of $178.83B. Q1 FY2026 sales are projected to grow 3–4%.
Earnings: Q4 FY2025 adjusted EPS was $0.64, up 7% YoY, beating consensus by $0.02. FY2026 EPS is forecasted at $2.50–$2.60, below analyst expectations of $2.76.
Comparable Sales: U.S. comparable sales (excluding fuel) rose 4.6% in Q4 FY2025, driven by higher-income shoppers and mid-single-digit grocery sales growth.
E-commerce: U.S. e-commerce sales surged 20% YoY in Q4, with Walmart+ gaining traction and contributing to a $100B+ digital channel.
Profitability: Net margin at 2.9%, ROA at 1.77%, and debt-to-equity ratio at 0.7, reflecting efficient operations and a sound financial structure.
Stock Metrics: Current price at $97.10 (per the finance card above), with a 12-month range of $65.76–$99.79. Market cap is $771.53B. P/E ratio at 40.1x, higher than the 5-year average of 24x, suggesting a premium valuation.

Challenges: Thin margins due to low-price strategy, tariff uncertainties, and a conservative FY2026 outlook may pressure performance. Recent job cuts (1,500 corporate roles) and a $249M insider stock sale by the Walton Family Trust signal caution.

Walmart Financial Snapshot (Q4 FY2025)

Revenue: $180.2B (+3.9% YoY)
Adjusted EPS: $0.64 (+7% YoY, beat estimates by $0.02)
U.S. Comparable Sales: +4.6% (excl. fuel)
U.S. E-commerce Growth: +20% YoY
Net Margin: 2.9%
ROA: 1.77%
Debt-to-Equity: 0.7
Stock Price: $97.10 (Market Cap: $771.53B)

Analyst Ratings

Consensus: “Strong Buy” from 39 analysts (32 Strong Buy, 4 Buy, 3 Hold, 0 Sell).
Price Target: Average $108.35, implying an 11.6% upside from $97.10.
- High: $120.00 (Citi, Bank of America, +23.6% upside).
- Low: $80.00 (Zacks, -17.6% downside).
Recent Updates:
- Bank of America (May 15, 2025): “Buy,” $120 target, citing market share gains.
- Baird (May 13, 2025): Raised target to $110 from $100, “Outperform.”
- Citi (February 24, 2025): “Buy,” $120 target, noting strong Q1 performance.
- Truist Securities (February 24, 2025): “Buy,” $107 target, emphasizing omnichannel strength.
Sentiment: Bullish due to e-commerce growth, market share gains, and tariff resilience, though tempered by high valuation and conservative guidance.

Investment Outlook

Strengths: Walmart’s hybrid model (4,600+ U.S. stores, 10,750 globally) supports efficient delivery and store pickup, driving 20% e-commerce growth. Its appeal to higher-income shoppers and strong grocery sales bolster resilience. A 2.5% CAGR revenue growth forecast and consistent dividend payments enhance its defensive appeal.

Risks: The stock’s 40.1x P/E ratio indicates potential overvaluation. Tariff uncertainties, inflation, and a conservative FY2026 outlook (3–4% sales growth) could limit upside. Technical indicators are mixed, with the stock near its 20-day moving average ($97.88) but below the 50-day ($98.23).

Recommendation: Moderate Buy for long-term investors seeking stability. The stock’s defensive qualities shine in uncertain markets, but its high valuation suggests waiting for a dip to $90–$93 for a better entry point. Ideal for those prioritizing consistent returns over short-term gains.

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