Walmart's revenue and earnings have grown by 16% and 15% over the past three years. In May 2024, WMT management raised its forecasts for the coming year. Analysts expect Walmart to do well financially over the next five years.
All the recent predictions are optimistic. Justin Pope believes the issuer will outperform the stock exchange. The bullish scenario is for a 2-fold growth. This makes the stock attractive to add to the portfolio.
The bulls say the company has these strengths:
-
Plans to expand advertising;
-
E-commerce revenue growth;
-
Competitive pricing and cost reduction.
The current P/E multiple is higher than the industry average, but lower than that of the main competitor. This also indicates the potential for capital growth.
The company has good cash flow. The stock is a good investment because of the dividends. The payout has been increasing for over 50 years.
Pessimists think WMT may face two big problems. The first is the economic downturn and high interest rates. This can lead to less consumer spending.
The business is focused on low prices. During an economic recession, more customers will buy from them. Telsey Advisory of Joseph Feldman believes that Walmart can expand its market share.
A second problem is a new US law on retail regulation.
In May, the company released a strong report for the first quarter of its fiscal year. It reported growth in the number of stores and sales. This result shows the good performance of all business segments. This led many analysts to raise their price targets. They recommend buying WMT.
Experts estimate Walmart's stock as follows:
-
$75 — Citigroup, Jefferies, Bank of America and BMO Capital;
-
$73 — Goldman Sachs;
-
$70 — Telsey Advisory Group;
-
$64 — Truist Securities.
|
Month
|
Minimum expected price, $
|
Maximum expected price, $
|
|
June
|
62.67
|
78.47
|
|
July
|
65.57
|
76.97
|
|
August
|
66.95
|
78.59
|
|
September
|
56.90
|
72.77
|
|
October
|
60.75
|
71.31
|
|
November
|
62.05
|
72.85
|
|
December
|
63.05
|
74.01
|
The company did well in early 2024 because it started selling advertising and Walmart Plus memberships. These activities are more profitable than the core business. They helped the company make more money.
Experts think the company will do better next year. All net profit forecasts predict growth. The expectations for the quotes are also positive:
|
Month
|
Minimum expected price, $
|
Maximum expected price, $
|
|
January
|
65.00
|
76.30
|
|
February
|
65.16
|
76.50
|
|
March
|
66.18
|
77.68
|
|
April
|
66.99
|
78.63
|
|
May
|
68.05
|
79.89
|
|
June
|
70.94
|
83.28
|
|
July
|
72.79
|
85.45
|
|
August
|
72.99
|
85.69
|
|
September
|
75.71
|
88.87
|
|
October
|
82.29
|
98.43
|
|
November
|
81.53
|
95.71
|
|
December
|
78.33
|
91.95
|
Experts at The Motley Fool say the key issue for WMT in the coming years is whether it can keep up with e-commerce. It has already made big progress in delivery and self-delivery.
Macroeconomic uncertainty affects prices. The Fed rate brokerage will increase capitalization, which experts project will lead to higher stock prices.
|
Month
|
Minimum expected price, $
|
Maximum expected price, $
|
|
January
|
83.82
|
98.40
|
|
February
|
88.44
|
103.82
|
|
March
|
90.07
|
105.73
|
|
April
|
94.15
|
110.53
|
|
May
|
102.34
|
124.56
|
|
June
|
92.83
|
115.33
|
|
July
|
100.90
|
125.32
|
|
August
|
104.71
|
122.93
|
|
September
|
106.92
|
125.52
|
|
October
|
90.89
|
116.22
|
|
November
|
97.03
|
113.91
|
|
December
|
99.11
|
116.35
|
The Stock Analysis service says EPS will be between $3.04 and $3.27 in 2027. In 2023, this indicator was $1.91. These expectations make it possible for experts to suggest optimistic scenarios. The lowest forecast still shows growth compared to the current price.
BeatMarket analysts are optimistic. They believe the company will strengthen its most profitable lines of business.
|
Month
|
Minimum expected price, $
|
Maximum expected price, $
|
|
January
|
92.78
|
108.92
|
|
February
|
95.65
|
112.29
|
|
March
|
94.68
|
111.14
|
|
April
|
96.14
|
112.86
|
|
May
|
97.32
|
114.24
|
|
June
|
98.87
|
116.07
|
|
July
|
103.07
|
120.99
|
|
August
|
105.75
|
124.15
|
|
September
|
104.58
|
122.76
|
|
October
|
108.46
|
127.32
|
|
November
|
117.89
|
141.00
|
|
December
|
116.79
|
137.11
|
In 2028, revenue is expected to be between $790.9 billion and $847.4 billion. EPS could rise to $3.63. Most experts believe the company will meet this years’ target for the next 5 years. Forecasting services name the following target levels:
BeatMarket analysts are optimistic. We believe Walmart will succeed this year.
|
Month
|
Minimum expected price, $
|
Maximum expected price, $
|
|
January
|
112.21
|
131.73
|
|
February
|
120.08
|
140.96
|
|
March
|
126.69
|
148.73
|
|
April
|
129.02
|
151.46
|
|
May
|
134.87
|
158.33
|
|
June
|
146.60
|
178.42
|
|
July
|
142.51
|
163.82
|
|
August
|
134.28
|
154.19
|
|
September
|
123.14
|
147.59
|
|
October
|
119.27
|
141.16
|
|
November
|
115.34
|
134.35
|
|
December
|
111.37
|
129.17
|
