Walmart Shares Hit 20-Day Low Amid Economic Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 03 2026
0mins
Should l Buy WMT?
Source: Benzinga
Shares of WMT.N declined sharply today, hitting a 20-day low as investors reacted to ongoing economic uncertainties. The stock's technical breakdown signals increased bearish momentum, raising concerns about consumer spending ahead of the holiday season. Factors contributing to this decline include the impact of the U.S. government shutdown on SNAP benefits, which could affect low-income shoppers, and a broader expectation of reduced holiday spending due to rising prices. Walmart's upcoming earnings call on November 20 is anticipated to provide further insights into its financial outlook amidst these challenges.
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Analyst Views on WMT
Wall Street analysts forecast WMT stock price to fall
26 Analyst Rating
25 Buy
1 Hold
0 Sell
Strong Buy
Current: 133.890
Low
119.00
Averages
125.75
High
136.00
Current: 133.890
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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- Future Outlook: While the market remains optimistic about Walmart's performance, analysts caution that the company must maintain its growth momentum and avoid missteps to solidify its leading position in the retail sector.
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- Strong Stock Performance: Walmart's stock has surged approximately 20% year-to-date, reaching a split-adjusted all-time high, and has gained nearly 29% over the past 12 months, reflecting robust market performance and investor confidence.
- Analyst Upgrades: Several analysts have raised Walmart's price targets, with Oppenheimer expecting fourth-quarter holiday sales to come in at the high end of Walmart's projected growth range, further boosting the stock price.
- Market Share Expansion: Walmart has successfully attracted higher-income shoppers by enhancing online and in-store pickup services, modernizing stores, and broadening brand selections, thereby increasing its competitive edge and encroaching on rival Target's market share.
- Valuation Risks Emerge: Despite Walmart reaching a $1 trillion market cap, making it the 12th company to do so, its price-to-earnings ratio stands at 45, indicating potential overvaluation, prompting investors to carefully consider their buying timing.
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- Retail Challenges: The current retail environment highlights the importance of brand power and operational efficiency as key strategies to navigate volatility.
See More
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Human Behavior: Despite technological advancements, human tendencies such as overspending after receiving a large paycheck remain prevalent.
See More
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- Hedge Fund Strategy: The increase in short positions suggests that hedge funds are not bearish on tech as a whole but are instead hedging against a few mega-cap AI stocks that have driven market gains, reflecting a more nuanced investment approach.
- Market Impact Analysis: Despite the rise in XLK's short interest, days-to-cover ratios remain low at about 1 to 1.6 days, indicating that this is not panic shorting but rather a calculated risk management strategy by institutional investors, signaling the first wave of skepticism towards AI leadership.
- Tech Stock Outlook: With giants like Nvidia, Apple, and Microsoft holding significant index weightings, even minor shifts in sentiment can lead to substantial market impacts, and while the broader Nasdaq trade remains intact, the AI-led leadership is facing scrutiny.
See More
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- Market Performance Comparison: Walmart has surged 20% year-to-date in 2026, reaching a $1 trillion market cap, while Amazon has declined 14%, highlighting the stark contrast in their retail market performances, with Walmart's growth reflecting increased consumer trust.
- Profit Strategy Shift: Walmart has focused on driving profits over sales in recent years, particularly investing in advertising and third-party delivery to compete with Amazon, aiming to enhance market share and overall profitability.
- Consumer Spending Trends: With the U.S. household savings rate dropping to 3.5%, indicating consumers are spending from savings, Walmart may benefit from this trend, especially in groceries, attracting an increasing number of high-income shoppers.
- Future Outlook: While the market remains optimistic about Walmart's performance, analysts caution that the company must maintain its growth momentum and avoid missteps to solidify its leading position in the retail sector.
See More
Walmart's Q4 Earnings Preview and Investor Insights
- Earnings Outlook: Investor Jay Woods is closely monitoring Walmart's upcoming Q4 earnings report, anticipating a potential pullback that could present an attractive entry point for investors, reflecting a cautious market sentiment towards the retail giant.
- Profit-Taking Advice: Woods suggests that investors should take profits as the stock approaches $134, especially given its parabolic trajectory, indicating sensitivity to short-term fluctuations in stock price.
- Buy-on-Dip Strategy: He believes that a pullback into the $120 range would be an opportune moment to increase positions, a strategy that may attract more investors to Walmart's long-term value proposition.
- Market Dynamics: Woods also notes that the market is testing support levels for the S&P 500 and Dow Jones Industrial Average, while keeping an eye on Nvidia's earnings, which could have significant implications for market sentiment, highlighting the complexity of current market emotions.
See More
