With a market cap of $778 billion, Walmart Inc. (WMT) is a technology-powered omnichannel retailer that operates retail and wholesale stores and clubs, eCommerce websites, and mobile applications worldwide. The Bentonville, Arkansas-based company operates through three segments: Walmart U.S., Walmart International, and Sam's Club.
Companies worth $200 billion or more are generally described as “mega-cap stocks”, and Walmart fits this criterion perfectly. The company operates as supercenters, supermarkets, hypermarkets, warehouse clubs, and cash-and-carry stores.
The retail corporation declined 7.7% from its 52-week high of $105.30. In addition, WMT stock has dipped 1.4% over the past three months, underperforming the broader Nasdaq Composite ($NASX), which gained 1.4% during the same period.
In the long term, WMT is up 7.6% on a YTD basis, outpacing NASX's 1.1% slip. Additionally, shares of Walmart have jumped 49.5% over the past 52 weeks, compared to the NASX’s 12.2% increase over the same period.
Since last year, the stock has been trading mostly above its 50-day and 200-day moving averages.
Walmart stock fell marginally following the release of its solid Q1 2025 results on May 15. The company reported revenue of $165.6 billion, up 2.5% year-over-year, driven by sales growth in the Walmart U.S. and Sam’s Club U.S. segments. Its Free Cash Flow (FCF) came in at $425 million, a significant improvement from a loss of $427 million in the prior-year quarter. Adjusted EPS rose 1.7% year-over-year to $0.61, beating analysts’ estimate by 7%.
Looking ahead to fiscal 2025, Walmart expects net sales to grow by 3% to 4%, with adjusted EPS projected in the range of $2.50 to $2.60.
Moreover, compared to its rival, Costco Wholesale Corporation (COST) has lagged behind WMT over the past 52 weeks, advancing 24.6%. However, shares of COST gained 10.6% on a YTD basis, outpacing WMT.
As WMT has outperformed over the past year, analysts remain bullish about its prospects. Among the 38 analysts covering the stock, there is a consensus rating of “Strong Buy,” and it is currently trading below the mean price target of $108.79.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
