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WMT Stock Nears 52-Week High: What Should Walmart Investors Do?
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Key Takeaways
Walmart shares are close to a 52-week high after a 51.7% surge over the past year.
E-commerce sales rose 22% in Q1 FY2026, driven by marketplace growth and faster delivery.
Membership and advertising revenue streams are growing, boosting margins and stability.
Walmart Inc. (WMT - Free Report) has been on an impressive run, with shares approaching a 52-week high amid steady operational execution and resilient consumer demand. The retail giant’s ability to navigate a challenging macroeconomic environment — from shifting shopping habits to inflationary pressures — has kept investor confidence intact. As WMT stock hovers near peak levels, the key question is whether this momentum signals further upside potential or if the valuation now warrants a more cautious stance.
WMT Stock Performance
Closing yesterday’s trading session at $103.12, shares of Walmart are currently trading near the 52-week high of $105.30 attained on Feb. 14, 2025. If the stock manages to break through its 52-week ceiling, it could reignite buying interest and attract new investors.
This Bentonville, AR-based company has experienced a remarkable surge in its stock price over the past year. The stock has rallied 51.7%, marginally outpacing the Zacks Retail-Supermarkets industry’s rise of 51%. WMT has even outperformed the broader Retail and Wholesale sector and the S&P 500 index, which posted respective gains of 25.6% and 19.3%.
Walmart has also outperformed peers such as Costco Wholesale Corporation (COST - Free Report) , The Kroger Co. (KR - Free Report) and Target Corporation (TGT - Free Report) . While shares of Kroger and Costco have risen 36.8% and 14.3%, respectively, in the past year, Target has declined 22%.
Image Source: Zacks Investment Research
Trading Above 50 & 200-Day Moving Averages
Technical indicators are supportive of Walmart’s strong performance. The stock is trading above both its 50-day and 200-day moving averages, indicating robust upward momentum and price stability. This technical strength reflects positive market perception and confidence in Walmart’s financial health and prospects.
Image Source: Zacks Investment Research
A Sneak Peek Into Walmart Stock
Walmart’s solid position in the retail industry makes it a compelling case for investors seeking both stability and growth. The company’s ability to generate sales momentum across its core segments, while adapting to changing market conditions, underscores its resilience. Comparable sales growth in Walmart U.S. and Sam’s Club reflects broad-based demand strength. The market share expansion in essential categories like grocery and health & wellness is being achieved even in a complex macroeconomic environment, positioning Walmart as a reliable performer in uncertain times.
A major catalyst for future profitability is Walmart’s e-commerce. The recent milestone of achieving profitability in e-commerce operations, both in the United States and globally, represents a significant shift in its business model. Walmart’s worldwide e-commerce sales grew 22% in the first quarter of fiscal 2026, fueled by marketplace expansion, store-fulfilled pickup and delivery, and improved last-mile economics. Enhanced delivery capabilities, such as aiming to reach 95% of the U.S. population within three hours or less, solidify Walmart’s competitive edge in convenience and service.
High-margin revenue streams are also expanding rapidly, strengthening Walmart’s profit base. Membership income is seeing robust growth, with strong renewal rates and premium tier adoption in Walmart+ and Sam’s Club. The advertising business, bolstered by Walmart Connect in the United States and platforms like Flipkart internationally, is scaling at an impressive pace. These businesses not only diversify revenue sources but also enhance margin resilience, making Walmart less dependent on traditional retail sales alone.
International markets are adding another dimension to Walmart’s growth story. Strong performances in China, Flipkart and Walmex highlight the company’s ability to tap into high-potential regions and diversify geographic risk. Alongside disciplined inventory management and strategic capital returns, Walmart’s strong balance sheet enables it to invest in future growth while rewarding shareholders. This combination of operational execution, strategic innovation and financial discipline validates the long-term investment case for Walmart stock.
However, Walmart faces challenges that could weigh on its performance, including tariff-related cost pressures that may impact demand, especially in price-sensitive categories. Also, rising operating expenses and persistent currency headwinds add further pressure. Together, these factors could hinder Walmart’s momentum.
Unlocking Walmart’s Valuation
Walmart currently trades at a forward 12-month price-to-earnings (P/E) multiple of 37.46, which positions it at a premium compared to the industry’s average of 34.47. The stock is also trading above its median P/E level of 34.36, observed over the past year.
This premium positioning is especially notable when compared to peers like Kroger (with a forward 12-month P/E ratio of 14.76) and Target (13.44). However, WMT is trading at a discount to Costco (with a forward 12-month P/E ratio of 49.36).
Walmart’s higher P/E signals strong investor confidence, but it also raises the risk that any slowdown could weigh heavily on the stock.
Image Source: Zacks Investment Research
How Estimates Stack Up for Walmart
Over the past 30 days, the Zacks Consensus Estimate for Walmart’s current fiscal year has held steady at $2.60, implying year-over-year growth of 3.6%. The estimate for the next fiscal year has been stable at $2.90, suggesting a year-over-year increase of 11.7%.
Image Source: Zacks Investment Research
How to Play WMT Stock: Buy, Hold or Sell?
Walmart’s operational strength, diversified growth drivers and ability to adapt to evolving consumer trends make it a high-quality stock in the retail sector, with the potential to deliver steady returns over the long term. However, its premium valuation means expectations are already elevated, leaving less room for missteps if macro or operational challenges emerge. For current shareholders, Walmart remains a solid hold, while potential investors may consider entering on market pullbacks to secure a more favorable risk-reward balance. Walmart currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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WMT Stock Nears 52-Week High: What Should Walmart Investors Do?
Key Takeaways
Walmart Inc. (WMT - Free Report) has been on an impressive run, with shares approaching a 52-week high amid steady operational execution and resilient consumer demand. The retail giant’s ability to navigate a challenging macroeconomic environment — from shifting shopping habits to inflationary pressures — has kept investor confidence intact. As WMT stock hovers near peak levels, the key question is whether this momentum signals further upside potential or if the valuation now warrants a more cautious stance.
WMT Stock Performance
Closing yesterday’s trading session at $103.12, shares of Walmart are currently trading near the 52-week high of $105.30 attained on Feb. 14, 2025. If the stock manages to break through its 52-week ceiling, it could reignite buying interest and attract new investors.
This Bentonville, AR-based company has experienced a remarkable surge in its stock price over the past year. The stock has rallied 51.7%, marginally outpacing the Zacks Retail-Supermarkets industry’s rise of 51%. WMT has even outperformed the broader Retail and Wholesale sector and the S&P 500 index, which posted respective gains of 25.6% and 19.3%.
Walmart has also outperformed peers such as Costco Wholesale Corporation (COST - Free Report) , The Kroger Co. (KR - Free Report) and Target Corporation (TGT - Free Report) . While shares of Kroger and Costco have risen 36.8% and 14.3%, respectively, in the past year, Target has declined 22%.
Image Source: Zacks Investment Research
Trading Above 50 & 200-Day Moving Averages
Technical indicators are supportive of Walmart’s strong performance. The stock is trading above both its 50-day and 200-day moving averages, indicating robust upward momentum and price stability. This technical strength reflects positive market perception and confidence in Walmart’s financial health and prospects.
Image Source: Zacks Investment Research
A Sneak Peek Into Walmart Stock
Walmart’s solid position in the retail industry makes it a compelling case for investors seeking both stability and growth. The company’s ability to generate sales momentum across its core segments, while adapting to changing market conditions, underscores its resilience. Comparable sales growth in Walmart U.S. and Sam’s Club reflects broad-based demand strength. The market share expansion in essential categories like grocery and health & wellness is being achieved even in a complex macroeconomic environment, positioning Walmart as a reliable performer in uncertain times.
A major catalyst for future profitability is Walmart’s e-commerce. The recent milestone of achieving profitability in e-commerce operations, both in the United States and globally, represents a significant shift in its business model. Walmart’s worldwide e-commerce sales grew 22% in the first quarter of fiscal 2026, fueled by marketplace expansion, store-fulfilled pickup and delivery, and improved last-mile economics. Enhanced delivery capabilities, such as aiming to reach 95% of the U.S. population within three hours or less, solidify Walmart’s competitive edge in convenience and service.
High-margin revenue streams are also expanding rapidly, strengthening Walmart’s profit base. Membership income is seeing robust growth, with strong renewal rates and premium tier adoption in Walmart+ and Sam’s Club. The advertising business, bolstered by Walmart Connect in the United States and platforms like Flipkart internationally, is scaling at an impressive pace. These businesses not only diversify revenue sources but also enhance margin resilience, making Walmart less dependent on traditional retail sales alone.
International markets are adding another dimension to Walmart’s growth story. Strong performances in China, Flipkart and Walmex highlight the company’s ability to tap into high-potential regions and diversify geographic risk. Alongside disciplined inventory management and strategic capital returns, Walmart’s strong balance sheet enables it to invest in future growth while rewarding shareholders. This combination of operational execution, strategic innovation and financial discipline validates the long-term investment case for Walmart stock.
However, Walmart faces challenges that could weigh on its performance, including tariff-related cost pressures that may impact demand, especially in price-sensitive categories. Also, rising operating expenses and persistent currency headwinds add further pressure. Together, these factors could hinder Walmart’s momentum.
Unlocking Walmart’s Valuation
Walmart currently trades at a forward 12-month price-to-earnings (P/E) multiple of 37.46, which positions it at a premium compared to the industry’s average of 34.47. The stock is also trading above its median P/E level of 34.36, observed over the past year.
This premium positioning is especially notable when compared to peers like Kroger (with a forward 12-month P/E ratio of 14.76) and Target (13.44). However, WMT is trading at a discount to Costco (with a forward 12-month P/E ratio of 49.36).
Walmart’s higher P/E signals strong investor confidence, but it also raises the risk that any slowdown could weigh heavily on the stock.
Image Source: Zacks Investment Research
How Estimates Stack Up for Walmart
Over the past 30 days, the Zacks Consensus Estimate for Walmart’s current fiscal year has held steady at $2.60, implying year-over-year growth of 3.6%. The estimate for the next fiscal year has been stable at $2.90, suggesting a year-over-year increase of 11.7%.
Image Source: Zacks Investment Research
How to Play WMT Stock: Buy, Hold or Sell?
Walmart’s operational strength, diversified growth drivers and ability to adapt to evolving consumer trends make it a high-quality stock in the retail sector, with the potential to deliver steady returns over the long term. However, its premium valuation means expectations are already elevated, leaving less room for missteps if macro or operational challenges emerge. For current shareholders, Walmart remains a solid hold, while potential investors may consider entering on market pullbacks to secure a more favorable risk-reward balance. Walmart currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.