Discount Retailers Show Strong Performance Amid Inflation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4h ago
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Source: Fool
- Discount Retail Stock Performance: As of 2026, discount retail stocks in the S&P 500, such as Walmart and Costco, have significantly outperformed the S&P 500 index, with Walmart up 5.8% year-to-date and 26.6% over the past 52 weeks, indicating strong consumer demand for discount retail.
- Consumer Shift to Discount Stores: Due to inflation, 28% of high-income households shopped at discount chains in 2025, up from 20% four years earlier, suggesting that discount retailers are attracting a broader consumer base.
- Same-Store Sales Growth: In Q4 2025, same-store sales increased by 4.2% at Walmart and 5.7% at Costco, reflecting consumer preference for discounted goods in a high-price environment, further boosting these retailers' performance.
- Future Inflation Expectations: Although the inflation rate has decreased from 9% in June 2022 to around 2.7%, economists expect inflation to remain elevated through 2026, which will continue to benefit discount retailers as consumers remain price-sensitive.
Analyst Views on WMT
Wall Street analysts forecast WMT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for WMT is 125.75 USD with a low forecast of 119.00 USD and a high forecast of 136.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
26 Analyst Rating
25 Buy
1 Hold
0 Sell
Strong Buy
Current: 117.640
Low
119.00
Averages
125.75
High
136.00
Current: 117.640
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.
