Investors are taking a closer look at Walmart’s stock following a mixed reaction to its latest earnings report. On the first trading day of the week, despite a sluggish overall market, Walmart shares rose by over 2%, contrasting sharply with the S&P 500 index, which saw a decline of 1%. This positive movement in Walmart’s stock can be attributed to recent upgrades from two prominent analysts.
On Monday, both Greg Melich of Evercore ISI and Karen Short of Barclays expressed increased confidence in Walmart’s future performance. Melich raised his price target by $5, setting a new target of $135 per share while maintaining an outperform rating. He highlighted Walmart’s significant 27% year-over-year growth in digital sales reported in its fourth-quarter results, emphasizing that such growth, particularly in high-margin areas like advertising, positions Walmart strongly within the retail landscape.
Similarly, Short amended her price target from $125 to $132 per share, also retaining her overweight rating. She commended Walmart’s management for effectively enhancing unit share gains during the quarter and expressed optimism regarding the sustainability of the recent e-commerce growth figures.
In terms of numbers, Walmart’s current stock price stands at $125.78, reflecting a change of 2.26% or an increase of $2.79. Key statistics reveal a market capitalization of $980 billion, with today’s trading range between $122.96 and $126.80. Over the past year, shares have fluctuated between $79.81 and $134.69. Walmart’s current volume reached 1.9 million, with a 52-week average volume of 31 million and a gross margin of 25.40%. The retailer currently offers a dividend yield of 0.76%.
While the initial investor response to Walmart’s last earnings report was tepid, attributed to management’s guidance falling short of expectations and a cautious outlook on consumer spending, many analysts remain optimistic. Observers argue that Walmart’s consistent performance across various dimensions of the retail industry indicates continued potential for double-digit growth, despite any short-term hurdles.
