Supreme Court May Rule on Trump's Tariff Legality
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 7 hours ago
0mins
Should l Buy WMT?
Source: CNBC
- Consumer Impact of Tariffs: The current average effective tariff rate in the U.S. stands at 16.9%, the highest since 1932, with projections indicating that consumers will pay an additional $1,300 to $1,700 in 2026, significantly increasing household economic burdens.
- Potential Legal Changes: Should the Supreme Court rule IEEPA tariffs unconstitutional, the consumer burden could be halved to between $600 and $800, providing some economic relief for families and influencing future spending patterns.
- Tariff Revenue Analysis: U.S. Customs and Border Protection collected approximately $133.5 billion in tariff revenue in fiscal year 2025, accounting for 60% of total tariff revenue during that period, highlighting the significant impact of tariff policies on government finances.
- Alternative Tariff Pathways: The Trump administration may resort to other legal frameworks to continue imposing tariffs, and economists note that even if IEEPA is overturned, this will limit potential consumer relief while maintaining high tariff burdens.
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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: 126.620
Low
119.00
Averages
125.75
High
136.00
Current: 126.620
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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- Thriving Advertising Business: Walmart's global advertising revenue grew by 37%, with Walmart Connect in the U.S. up 41%, which not only enhances the company's revenue streams but also strengthens its competitive edge in the advertising market.
- Cautious Future Outlook: The company projects net sales growth of 3.5% to 4.5% for FY27, below the market consensus of 5.01%, with adjusted EPS expected to be between $2.75 and $2.85, reflecting uncertainty regarding future economic conditions.
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- Digital Sales Performance: The company's digitally enabled sales surged 34.4% in January, with an adjusted growth rate of 33.1% when excluding gasoline and foreign exchange impacts, indicating rapid expansion in e-commerce and enhancing its competitive resilience.
- Membership Fee Growth: In the fiscal first quarter of 2025, Costco's net sales increased 8.2% year-over-year to $66.0 billion, while membership fees grew even faster at a rate of 14%, reflecting the company's stable revenue sources and customer loyalty.
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See More
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- E-commerce Sales Surge: Global e-commerce sales increased by 24%, accounting for 23% of total net sales, demonstrating Walmart's significant progress in digital transformation and enhancing its competitive position in the retail sector.
- Advertising Business Growth: The company's global advertising segment grew by 37%, with Walmart Connect in the U.S. expanding by 41%, which not only boosts profit margins but also provides new revenue streams for future growth.
- Cautious Future Outlook: While management forecasts a 3.5% to 4.5% increase in net sales for fiscal 2027, the current stock price reflects a P/E ratio of about 45, suggesting that the market has set high expectations for Walmart's future performance, increasing investment risks.
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- GE Aero Leads New Buys: Despite the overall market decline, GE Aero emerged as a leader in new buys, reflecting investor confidence in its future growth potential, which could bring new capital inflows to the company.
- Comfort Systems Earnings Movement: Comfort Systems' earnings report garnered market attention, demonstrating its resilience in the current economic environment, potentially attracting more investor focus on its long-term growth strategy.
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- GE Aero Leads New Buys: Despite the overall market decline, GE Aero emerged as a leader in new buys, indicating its relative resilience in the current environment and potentially attracting risk-averse investors.
- Comfort Systems Earnings Movement: Comfort Systems' earnings report drew market attention, showcasing its profitability in the current economic climate and possibly providing new investment opportunities for investors.
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- Oil Price Surge: Concerns over potential military action in Iran pushed oil prices up nearly 2%, which could impact global energy market stability and exacerbate inflationary pressures, thereby affecting consumer spending and business costs.
- Blue Owl Liquidity Tightening: Blue Owl Capital's sale of $1.4 billion in loan assets led to a nearly 6% drop in its stock, raising alarms about the stability of the private credit market, which may also affect the stock performance of other asset management firms.
- Walmart Earnings Beat: Walmart's fiscal fourth-quarter results exceeded expectations due to growth in e-commerce, advertising, and its third-party marketplace, but its earnings forecast for the current fiscal year fell short of market expectations, potentially impacting investor confidence in its long-term growth prospects.
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