The Zacks Analyst Blog Highlights NVIDIA, Walmart, Caterpillar, Seneca Foods and Waterstone
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 11 2025
0mins
Should l Buy WMT?
Source: NASDAQ.COM
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Analyst Views on WMT
Wall Street analysts forecast WMT stock price to rise
26 Analyst Rating
25 Buy
1 Hold
0 Sell
Strong Buy
Current: 124.740
Low
119.00
Averages
125.75
High
136.00
Current: 124.740
Low
119.00
Averages
125.75
High
136.00
About WMT
Walmart Inc. is a technology-powered omnichannel retailer. The Company is engaged in the operation of retail and wholesale stores and clubs, as well as eCommerce Websites and mobile applications, located throughout the United States (U.S.), Africa, Canada, Central America, Chile, China, India and Mexico. It operates in three reportable segments: Walmart U.S., Walmart International and Sam's Club U.S. The Walmart U.S. segment includes the Company's mass merchandising concept in the U.S., as well as eCommerce, which includes omni-channel initiatives and certain other business offerings such as advertising services. The Walmart International segment consists of the Company's operations outside of the U.S. through its subsidiaries, as well as eCommerce and omni-channel initiatives. The Sam's Club U.S. segment includes the warehouse membership clubs in the U.S., as well as samsclub.com and omni-channel initiatives.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Expansion Partnership: La Roche-Posay's collaboration with Walmart officially launched in April 2026, with products available in 1,460 Walmart stores, significantly enhancing brand accessibility and aiming to meet consumer skincare needs through a science-driven, patient-centric approach.
- Professional Training Program: Walmart will provide specialized training for its pharmacists on La Roche-Posay products, enabling them to offer personalized skincare consultations, particularly addressing skin side effects from medical treatments, thereby enhancing customer experience and brand loyalty.
- Curated Product Launch: The partnership will feature best-sellers like Toleriane Double Repair Moisturizer and Anthelios Ultra Light Fluid Sunscreen, and while the full product range won't be available, the selection is expected to attract more consumer attention and purchases.
- Beauty Strategy Continuation: Walmart's recent efforts to become a beauty and wellness destination are reinforced by this partnership with La Roche-Posay, aiming to solidify its leadership in the skincare market by introducing more premium brands and products.
See More
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- Advertising Revenue Surge: Walmart's advertising revenue reached $6.4 billion in fiscal year 2026, marking a 46% increase, which, while a small fraction of its total $713.2 billion revenue, indicates significant profit potential for the advertising segment, potentially becoming a major profit driver in the future.
- E-commerce Competitive Edge: As the world's largest retailer and the second-largest online retailer in the U.S., Walmart's growth in advertising revenue will further solidify its position in an increasingly competitive retail landscape, particularly as e-commerce becomes more critical.
- Significant Profit Contribution: The combination of advertising revenue and Walmart+ membership fees accounted for approximately one-third of the company's operating profit in Q4 of fiscal year 2026, highlighting the positive impact of rapid advertising growth on overall profitability and its potential to drive future earnings growth.
- Investor Attention: Although Walmart's current P/E ratio stands at around 46, significantly above the historical average of 31, the potential of its advertising business may attract investor interest, especially with projected long-term earnings growth of 8.8%, suggesting that continued advertising growth could further enhance the company's valuation.
See More
Walmart's Ad Revenue Soars 46%, Attracting Investor Attention
- Ad Revenue Surge: Walmart's global ad revenue reached $6.4 billion in fiscal year 2026, marking a 46% increase, which, while small relative to total revenue of $713.2 billion, highlights the potential of its advertising business.
- Significant Profit Contribution: Combined, ad revenue and Walmart+ membership fees accounted for about one-third of the company's operating profit in Q4 of fiscal year 2026, indicating that advertising is rapidly becoming a key profit center for Walmart.
- High Margin Advantage: Digital advertising boasts extremely high profit margins with minimal costs, suggesting that as Walmart sells goods at thin margins, the growth in ad revenue could significantly enhance overall profitability.
- Future Growth Potential: Analysts project an average long-term earnings growth of 8.8% for Walmart, and if advertising revenue grows to represent 5% to 10% of total revenue, it could further elevate earnings expectations, drawing increased investor interest.
See More
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- Easter Spending Trends: According to the National Retail Federation, consumer spending for Easter is projected to reach a record high of $24.9 billion in 2026, with food expenditures accounting for $7.5 billion, indicating increased financial pressure on consumers during the holiday.
- Rising Food Prices: Economist Bob McNab highlighted that the pain point for Easter spending stems from rising prices, as consumers will face significantly higher costs if they aim to purchase the same items as last year, reflecting inflation's impact on household budgets.
- Dollar General's Market Expansion: Over the past few years, Dollar General has actively expanded its grocery offerings, stating in 2023 that it provides fresh fruits and vegetables in more locations than any other mass retailer, becoming a key food supplier in rural and underserved areas, thus helping to reduce food deserts.
- New CEO Appointment: Dollar General announced the appointment of JJ Fleeman as the new CEO in 2027, who previously held an executive position at Ahold Delhaize, signaling the company's intent to further expand its grocery business and enhance its competitive position in the market.
See More
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- Net Inflow Trend: Over the past year, derivative income ETFs have seen significant net inflows, particularly in single-stock ETFs, with the JPMorgan Equity Premium Income ETF and JPMorgan Nasdaq Equity Premium Income ETF collectively managing $78 billion in assets, indicating strong investor demand for high-yield covered call products.
- Investment Strategy Analysis: The JPMorgan Equity Premium Income ETF targets low-volatility stocks and writes out-of-the-money S&P 500 call options to generate monthly income, aiming to reduce downside risk and provide stable cash flow despite challenges like economic slowdown and negative non-farm payroll growth.
- Market Environment Impact: With the U.S. GDP growth rate slowing to just 0.7% in Q4 2025 and the OECD forecasting a 4% inflation rate, these economic conditions are not supportive of rising stock prices, prompting investors to shift towards more defensive investment strategies to mitigate market volatility.
- ETF Comparison: Given the current macroeconomic conditions, the JPMorgan Equity Premium Income ETF is viewed as the better choice due to its low-volatility stocks providing a layer of protection, while the JPMorgan Nasdaq Equity Premium Income ETF, despite an attractive 11.4% yield, carries higher risks due to the volatility of tech stocks.
See More
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- High Yield Performance: In the current market pullback, high yield and defensive strategies have outperformed the broader market, particularly covered call strategies, which have attracted significant inflows, indicating strong investor demand for income.
- ETF Inflows: Over the past year, derivative income exchange-traded funds (ETFs) have seen substantial net inflows, notably the JPMorgan Equity Premium Income ETF (JEPI) and the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ), which together manage $78 billion in assets, reflecting a market preference for high-yield products.
- Low Volatility Investment: The JPMorgan Equity Premium Income ETF focuses on low-volatility stocks, holding companies like Walmart and Johnson & Johnson, aiming to provide stable cash flow and reduced downside risk, which is crucial in the current environment of slowing economic growth.
- Market Outlook Analysis: Although JEPQ offers a yield of 11.4%, in the context of a slowing economy and labor market, low-volatility stocks may provide better defensive characteristics, making them more suitable for the current uncertain market conditions.
See More
