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The Zacks Analyst Blog Highlights Walmart, The Kroger, Costco and Target
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For Immediate Release
Chicago, IL – May 20, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Walmart Inc. (WMT - Free Report) , The Kroger Co. (KR - Free Report) , Costco Wholesale Corp. (COST - Free Report) and Target Corp. (TGT - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Walmart Looks Strong Ahead of Q1 Earnings: Buy More or Stay?
Walmart Inc. heads into its first-quarter fiscal 2027 earnings release on a strong footing, supported by sustained momentum in its omnichannel operations, growing digital ecosystem and resilient consumer demand trends.
The retail behemoth, which is set to report results on May 21, has continued to benefit from market-share gains, improving e-commerce economics and higher-margin growth drivers such as advertising and memberships. Investors will closely watch whether Walmart can maintain its sales momentum and profitability trajectory amid persistent macroeconomic uncertainties and elevated investments in automation and technology initiatives.
The Zacks Consensus Estimate for first-quarter revenues stands at $174.38 billion, indicating an increase of 5.3% from the same period last year. The consensus mark for earnings has remained unchanged in the past 30 days at 65 cents per share, calling for a 6.6% jump from the figure reported in the year-ago period. Walmart has a trailing four-quarter average earnings surprise of 0.8%. In the last reported quarter, the company delivered an earnings surprise of 1.4%.
What the Zacks Model Predicts for WMT's Q1 Earnings
As investors prepare for WMT's quarterly announcement, the question looms regarding earnings beat or miss. Our proven model predicts an earnings beat for Walmart this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here. You can see the complete list of today's Zacks #1 Rank stocks here.
Walmart has a Zacks Rank #3 and an Earnings ESP of +0.89% at present. You can uncover the best stocks before they're reported with our Earnings ESP Filter.
What's Shaping WMT's Q1 Earnings?
Walmart has been benefiting from continued strength in its omnichannel model, value-focused assortment and growing convenience proposition. The company has been gaining market share across income cohorts, supported by resilient traffic, healthy unit volumes and demand for grocery, consumables and select general merchandise categories. Customers continue to respond favorably to Walmart's everyday-low-price strategy, broad assortment and faster fulfillment options, which may have supported sales momentum in the quarter.
Walmart's digital business remains a key driver. Store-fulfilled pickup and delivery, marketplace, Walmart Fulfillment Services and advertising have been scaling well, while investments in automation and AI are improving delivery speed, inventory visibility and customer engagement. The company's focus on faster delivery and personalized commerce, including tools like Sparky, strengthens its ability to convert digital demand into larger baskets and higher frequency.
Margin trends may also have benefited from better inventory management, improved eCommerce economics and a favorable business mix. Growth in advertising, membership income and marketplace services is likely to have supported operating leverage. Strength in Walmart+ and Sam's Club memberships, along with steady momentum across international markets such as China, Walmex and Flipkart, is likely to have further supported the quarter's performance.
That said, Walmart has been facing pressure from cautious consumer spending, particularly among lower-income households. Tariff-related costs, pharmacy reimbursement headwinds, inflation uncertainty and an unfavorable grocery/digital mix may have weighed on margins. Elevated spending on automation, technology and store remodels remains another near-term concern for profitability.
WMT Stock Price Performance
Over the past year, Walmart stock has rallied 35.9% compared with the Zacks Retail – Supermarkets industry's growth of 31.4% and the Zacks Retail – Wholesale sector's jump of 8.7%. WMT also outpaced the S&P 500's 29% rise during the same period.
In the said time frame, Walmart surpassed other retailers such as The Kroger Co., Costco Wholesale Corp. and Target Corp.. While Kroger shares have dipped 0.9% over the past year, Costco and Target have risen 4% and 25.9%, respectively.
Walmart's Valuation Picture
Walmart shares are currently trading at a forward 12-month price-to-earnings ratio of 44.45, above the industry's average of 39.62. While Walmart is trading at a premium to Kroger and Target, its valuation stands below COST at present. KR trades at a P/E ratio of 12.75, TGT stands at 15.11, and COST trades at 49.4.
Walmart is currently trading at a premium to the industry, reflecting investor confidence in its resilient business model, strong omnichannel execution and expanding higher-margin revenue streams such as advertising and memberships. However, the premium valuation also reflects expectations of sustained sales momentum, continued market-share gains and steady execution across its higher-margin growth businesses.
What's the Best Move for WMT Stock Now?
Walmart remains well-positioned ahead of its first-quarter earnings, supported by its resilient model, omnichannel strength and higher-margin revenue streams. Healthy traffic, digital engagement and market-share gains remain key positives, while automation, AI and faster fulfillment support long-term efficiency. However, cautious consumer spending, tariff-related costs, pharmacy reimbursement pressure and elevated technology investments could weigh on near-term profitability. Given Walmart's premium valuation, investors may consider waiting for clearer signals from its earnings results and management's guidance before adding fresh positions.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights Walmart, The Kroger, Costco and Target
For Immediate Release
Chicago, IL – May 20, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Walmart Inc. (WMT - Free Report) , The Kroger Co. (KR - Free Report) , Costco Wholesale Corp. (COST - Free Report) and Target Corp. (TGT - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Walmart Looks Strong Ahead of Q1 Earnings: Buy More or Stay?
Walmart Inc. heads into its first-quarter fiscal 2027 earnings release on a strong footing, supported by sustained momentum in its omnichannel operations, growing digital ecosystem and resilient consumer demand trends.
The retail behemoth, which is set to report results on May 21, has continued to benefit from market-share gains, improving e-commerce economics and higher-margin growth drivers such as advertising and memberships. Investors will closely watch whether Walmart can maintain its sales momentum and profitability trajectory amid persistent macroeconomic uncertainties and elevated investments in automation and technology initiatives.
The Zacks Consensus Estimate for first-quarter revenues stands at $174.38 billion, indicating an increase of 5.3% from the same period last year. The consensus mark for earnings has remained unchanged in the past 30 days at 65 cents per share, calling for a 6.6% jump from the figure reported in the year-ago period. Walmart has a trailing four-quarter average earnings surprise of 0.8%. In the last reported quarter, the company delivered an earnings surprise of 1.4%.
What the Zacks Model Predicts for WMT's Q1 Earnings
As investors prepare for WMT's quarterly announcement, the question looms regarding earnings beat or miss. Our proven model predicts an earnings beat for Walmart this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here. You can see the complete list of today's Zacks #1 Rank stocks here.
Walmart has a Zacks Rank #3 and an Earnings ESP of +0.89% at present. You can uncover the best stocks before they're reported with our Earnings ESP Filter.
What's Shaping WMT's Q1 Earnings?
Walmart has been benefiting from continued strength in its omnichannel model, value-focused assortment and growing convenience proposition. The company has been gaining market share across income cohorts, supported by resilient traffic, healthy unit volumes and demand for grocery, consumables and select general merchandise categories. Customers continue to respond favorably to Walmart's everyday-low-price strategy, broad assortment and faster fulfillment options, which may have supported sales momentum in the quarter.
Walmart's digital business remains a key driver. Store-fulfilled pickup and delivery, marketplace, Walmart Fulfillment Services and advertising have been scaling well, while investments in automation and AI are improving delivery speed, inventory visibility and customer engagement. The company's focus on faster delivery and personalized commerce, including tools like Sparky, strengthens its ability to convert digital demand into larger baskets and higher frequency.
Margin trends may also have benefited from better inventory management, improved eCommerce economics and a favorable business mix. Growth in advertising, membership income and marketplace services is likely to have supported operating leverage. Strength in Walmart+ and Sam's Club memberships, along with steady momentum across international markets such as China, Walmex and Flipkart, is likely to have further supported the quarter's performance.
That said, Walmart has been facing pressure from cautious consumer spending, particularly among lower-income households. Tariff-related costs, pharmacy reimbursement headwinds, inflation uncertainty and an unfavorable grocery/digital mix may have weighed on margins. Elevated spending on automation, technology and store remodels remains another near-term concern for profitability.
WMT Stock Price Performance
Over the past year, Walmart stock has rallied 35.9% compared with the Zacks Retail – Supermarkets industry's growth of 31.4% and the Zacks Retail – Wholesale sector's jump of 8.7%. WMT also outpaced the S&P 500's 29% rise during the same period.
In the said time frame, Walmart surpassed other retailers such as The Kroger Co., Costco Wholesale Corp. and Target Corp.. While Kroger shares have dipped 0.9% over the past year, Costco and Target have risen 4% and 25.9%, respectively.
Walmart's Valuation Picture
Walmart shares are currently trading at a forward 12-month price-to-earnings ratio of 44.45, above the industry's average of 39.62. While Walmart is trading at a premium to Kroger and Target, its valuation stands below COST at present. KR trades at a P/E ratio of 12.75, TGT stands at 15.11, and COST trades at 49.4.
Walmart is currently trading at a premium to the industry, reflecting investor confidence in its resilient business model, strong omnichannel execution and expanding higher-margin revenue streams such as advertising and memberships. However, the premium valuation also reflects expectations of sustained sales momentum, continued market-share gains and steady execution across its higher-margin growth businesses.
What's the Best Move for WMT Stock Now?
Walmart remains well-positioned ahead of its first-quarter earnings, supported by its resilient model, omnichannel strength and higher-margin revenue streams. Healthy traffic, digital engagement and market-share gains remain key positives, while automation, AI and faster fulfillment support long-term efficiency. However, cautious consumer spending, tariff-related costs, pharmacy reimbursement pressure and elevated technology investments could weigh on near-term profitability. Given Walmart's premium valuation, investors may consider waiting for clearer signals from its earnings results and management's guidance before adding fresh positions.
Free: Instant Access to Zacks' Market-Crushing Strategies
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Get all the details here >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.