Buy Or Sell Walmart Stock? – The Latest World News

Our comprehensive multi-factor evaluation indicates that it might be the right moment to divest from WMT stock . We maintain a generally pessimistic outlook on the stock, and a target price of $83 seems achievable. Separately, see how policy can move markets in – What if Trump Offers $2M to Each Greenlander?

While Walmart remains one of the most resilient and dominant players in global retail—benefiting from scale, pricing power, and a defensive consumer base—the stock appears to have run ahead of its fundamentals.

We think there are several concerns regarding WMT stock considering its overall Moderate operational performance and financial health. In an environment where interest rates remain elevated and market leadership is increasingly concentrated in higher-growth names, Walmart’s defensive appeal alone may no longer justify its premium pricing. As a result, despite the company’s brand strength and stability, we conclude that WMT stock is currently Unattractive.

Here is our evaluation:

Individual stocks can fluctuate, but a diversified asset allocation remains stable. Trefis’s Boston-based wealth management affiliate integrates strategy and discipline to mitigate market volatility.

Let’s delve into the details of each of the evaluated factors, but first, for a brief overview: With $947 Bil in market capitalization, Walmart offers retail and wholesale services globally through supercenters, supermarkets, warehouse clubs, and discount stores across the U.S., international regions, and membership-based clubs.

[1] Valuation Looks Very High

This table illustrates how WMT is valued compared to the wider market. For additional information, see: WMT Valuation Ratios

[2] Growth Is Moderate

Walmart has experienced its top line expand at an average rate of 5.4% over the past 3 years
Its revenues have increased by 4.3% from $674 Bil to $703 Bil in the last 12 months
Additionally, its quarterly revenues grew 5.8% to $179 Bil in the most recent quarter from $170 Bil a year prior.

This table presents how WMT is growing compared to the broader market. For further information, see: WMT Revenue Comparison

[3] Profitability Appears Very Weak

WMT’s operating income for the last 12 months was $29 Bil, reflecting an operating margin of 4.1%
With a cash flow margin of 5.8%, it produced nearly $41 Bil in operating cash flow during this period
Throughout the same timeframe, WMT reported approximately $23 Bil in net income, indicating a net margin of around 3.3%

This table showcases WMT’s profitability in comparison to the broader market. For further details, see: WMT Operating Income Comparison

[4] Financial Stability Looks Strong

WMT’s Debt was $68 Bil at the conclusion of the most recent quarter, with its current Market Cap sitting at $947 Bil. This signifies a Debt-to-Equity Ratio of 7.2%
WMT’s Cash (including cash equivalents) constitutes $11 Bil of $289 Bil in total Assets. This results in a Cash-to-Assets Ratio of 3.7%

[5] Downturn Resilience Is Very Strong

WMT has shown substantially greater resilience than the S&P 500 index through different economic downturns. We evaluate this by looking at (a) the extent of the stock’s decline and (b) the speed of its recovery.

2022 Inflation Shock

WMT stock dropped 26.0% from a peak of $53.29 on April 21, 2022, to $39.43 on June 17, 2022, compared to a peak-to-trough decrease of 25.4% for the S&P 500.
Nevertheless, the stock completely rebounded to its pre-Crisis peak by July 28, 2023
Following that, the stock rose to a high of $120.36 on January 13, 2026, and is currently priced at $118.71

2020 Covid Pandemic

WMT stock decreased 13.1% from a peak of $39.93 on March 10, 2020, to $34.68 on March 12, 2020, compared to a peak-to-trough fall of 33.9% for the S&P 500.
However, the stock completely recovered to its pre-Crisis peak by March 18, 2020.

2008 Global Financial Crisis

WMT stock declined 26.5% from a peak of $21.06 on September 11, 2008, to $15.47 on February 4, 2009, compared to a peak-to-trough drop of 56.8% for the S&P 500.
However, the stock fully recovered to its pre-Crisis peak by May 22, 2012.

The Trefis High Quality (HQ) Portfolio comprises thirty stocks and has demonstrated a history of consistently outperforming its benchmark, which includes the S&P 500, S&P mid-cap, and Russell 2000 indices. What accounts for this? Collectively, HQ Portfolio stocks have yielded superior returns with lower risk in comparison to the benchmark index, leading to fewer market fluctuations, as shown in HQ Portfolio performance metrics.

Source link