U.S. Stocks Rise as Economic Data and Supreme Court Ruling Impact Markets
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy WMT?
Source: seekingalpha
- Economic Slowdown: The annualized GDP growth rate for Q4 2025 fell to 1.4%, down from 4.4% in the previous quarter and below the 2.8% consensus estimate, indicating a slowdown that could affect investor confidence and consumer spending.
- Supreme Court Ruling: The U.S. Supreme Court ruled 6-3 to strike down tariffs imposed by the Trump administration, limiting the executive branch's ability to impose broad trade levies without congressional approval, which may impact future trade policies and market stability.
- Corporate Earnings Impact: Walmart (WMT) reported solid sales and earnings but issued a cautious outlook for FY27, guiding for EPS between $2.75 and $2.85, below the $2.97 consensus, which could lead to stock price volatility.
- M&A Activity: ZIM Integrated Shipping (ZIM) announced an acquisition agreement with German shipping company Hapag-Lloyd for $35 per share in cash, representing a 58% premium, with the deal expected to provide ZIM with approximately $4.2 billion in equity value, reflecting positive market response to its strategic review.
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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: 124.870
Low
119.00
Averages
125.75
High
136.00
Current: 124.870
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.
Walmart's Q4 Earnings Beat Expectations Amid Bullish Analyst Outlook
- Earnings Beat: Walmart reported fourth-quarter adjusted earnings per share of 74 cents, surpassing the market expectation of 73 cents, demonstrating the company's robust performance in the retail sector and reinforcing its market leadership.
- Strong Sales Growth: The company achieved sales of $190.70 billion, a 5.6% year-over-year increase, with a 4.9% rise in constant currency, exceeding the analyst consensus estimate of $190.43 billion, reflecting Walmart's success in diversifying its business.
- Bullish Analyst Ratings: Telsey Advisory Group's analyst Joseph Feldman raised Walmart's price target from $135 to $140, citing the company's higher-margin new businesses in advertising, merchant services, and last-mile delivery, which could accelerate operating income growth.
- Positive Future Outlook: DA Davidson's analyst Michael Baker expects Walmart to continue exceeding sales growth targets in 2026, emphasizing that investments in automation, AI, and alternative businesses will yield new profit growth, further enhancing its competitive position in the market.
See More
Retail Investors Hype Five Hot Stocks This Week
- Super Micro Computer Buzz: Retail investors are so bullish on Super Micro Computer (SMCI) that they jokingly consider betting their entire portfolio on it, despite a 45.74% annual decline and current trading around $32 to $35, indicating high risk and potential reward in the short term.
- Hims & Hers Health Outlook: Hims & Hers (HIMS) is believed to potentially break above $20, even though it has seen a staggering 76.18% decline over the year, trading around $15 to $16, reflecting a mix of investor optimism and inherent risks regarding its recovery prospects.
- Blue Owl Capital Concerns: Blue Owl Capital (OWL) faces investor concerns over withdrawal limits, with current trading between $11 to $13 and a 49.87% annual decline, yet it maintains a solid growth score, suggesting potential investment opportunities amidst the challenges.
- Walmart Market Performance: Walmart (WMT) is viewed as a catalyst for a rotation back into tech stocks, trading around $124 to $125 with a 28.45% annual return, demonstrating relative strength in a volatile market environment.
See More
U.S. Stocks Rise as Economic Data and Supreme Court Ruling Impact Markets
- Economic Slowdown: The annualized GDP growth rate for Q4 2025 fell to 1.4%, down from 4.4% in the previous quarter and below the 2.8% consensus estimate, indicating a slowdown that could affect investor confidence and consumer spending.
- Supreme Court Ruling: The U.S. Supreme Court ruled 6-3 to strike down tariffs imposed by the Trump administration, limiting the executive branch's ability to impose broad trade levies without congressional approval, which may impact future trade policies and market stability.
- Corporate Earnings Impact: Walmart (WMT) reported solid sales and earnings but issued a cautious outlook for FY27, guiding for EPS between $2.75 and $2.85, below the $2.97 consensus, which could lead to stock price volatility.
- M&A Activity: ZIM Integrated Shipping (ZIM) announced an acquisition agreement with German shipping company Hapag-Lloyd for $35 per share in cash, representing a 58% premium, with the deal expected to provide ZIM with approximately $4.2 billion in equity value, reflecting positive market response to its strategic review.
See More
Amazon and Meta: Growth Stocks to Hold for the Next Decade
- Amazon's Market Leadership: Amazon (AMZN) leads in both e-commerce and cloud computing, with its North American operating income rising 24% last year, showcasing strong operating leverage driven by its largest global logistics network.
- Cloud Business Growth: Amazon Web Services (AWS) is the company's most profitable and fastest-growing segment, achieving 24% revenue growth last quarter, with capital expenditures ramping up to $200 billion this year to seize market opportunities.
- Valuation Advantage: Amazon's forward P/E ratio is below 27 times, contrasting sharply with peers like Walmart and Costco, which trade above 40 times, indicating its stock's attractiveness for long-term investors.
- Meta's AI-Driven Growth: Meta (META) has leveraged AI to enhance its recommendation engine, accelerating revenue growth to 24%, with projections for Q1 growth between 26% and 34%, while also introducing ads on new platforms like WhatsApp and Threads to expand revenue streams.
See More
Three Top Real Estate Investment Trusts to Know
- Federal Realty Investment Trust: Federal Realty stands out with 58 consecutive years of dividend increases, qualifying as a Dividend King, focusing on high-quality open-air retail and mixed-use properties, and despite a smaller portfolio, it excels in high-income markets, likely continuing its dividend growth.
- Realty Income: As the sixth-largest REIT globally, Realty Income boasts over $61 billion in real estate across nine countries, relying on stable net-leased properties for dependable monthly dividends, having raised its payout for over 30 years, and will continue to drive dividend growth through new investments.
- Prologis: Prologis, one of the largest REITs, manages over $215 billion in assets, primarily investing in warehouses that support the global economy, with $3.2 trillion in goods flowing through its distribution centers annually, and plans to invest $30 billion to $50 billion in data centers over the next decade, creating $25 billion in value for investors.
- Dividend Growth Potential: These three REITs have a strong history of dividend growth, with Federal Realty, Realty Income, and Prologis employing investment strategies that make them ideal long-term holds, providing sustainable returns for investors.
See More
United Airlines Revamps Rewards Program to Attract Credit Card Customers
- Program Overhaul: United Airlines is reforming its rewards program to attract credit card customers, a move that may upset some as non-cardholders will lose certain mileage accrual opportunities.
- Mileage Earning Restrictions: Under the new policy, MileagePlus members without a United credit card will earn fewer miles on United flights, highlighting the airline's focus on credit card relationships.
- Premium Customer Benefits: Cardholders will receive a 10% discount on every United award flight booked, while non-cardholders will no longer earn any miles when booking basic economy, intensifying the airline's appeal to premium customers.
- Industry Trend Reflection: This shift in the airline industry aligns with broader economic trends, showcasing the bifurcation of consumer habits, as United's Chief Commercial Officer emphasizes that loyal customers deserve the best benefits in the industry.
See More
Walmart's Q4 Earnings Beat Expectations Amid Bullish Analyst Outlook
- Earnings Beat: Walmart reported fourth-quarter adjusted earnings per share of 74 cents, surpassing the market expectation of 73 cents, demonstrating the company's robust performance in the retail sector and reinforcing its market leadership.
- Strong Sales Growth: The company achieved sales of $190.70 billion, a 5.6% year-over-year increase, with a 4.9% rise in constant currency, exceeding the analyst consensus estimate of $190.43 billion, reflecting Walmart's success in diversifying its business.
- Bullish Analyst Ratings: Telsey Advisory Group's analyst Joseph Feldman raised Walmart's price target from $135 to $140, citing the company's higher-margin new businesses in advertising, merchant services, and last-mile delivery, which could accelerate operating income growth.
- Positive Future Outlook: DA Davidson's analyst Michael Baker expects Walmart to continue exceeding sales growth targets in 2026, emphasizing that investments in automation, AI, and alternative businesses will yield new profit growth, further enhancing its competitive position in the market.
See More
Retail Investors Hype Five Hot Stocks This Week
- Super Micro Computer Buzz: Retail investors are so bullish on Super Micro Computer (SMCI) that they jokingly consider betting their entire portfolio on it, despite a 45.74% annual decline and current trading around $32 to $35, indicating high risk and potential reward in the short term.
- Hims & Hers Health Outlook: Hims & Hers (HIMS) is believed to potentially break above $20, even though it has seen a staggering 76.18% decline over the year, trading around $15 to $16, reflecting a mix of investor optimism and inherent risks regarding its recovery prospects.
- Blue Owl Capital Concerns: Blue Owl Capital (OWL) faces investor concerns over withdrawal limits, with current trading between $11 to $13 and a 49.87% annual decline, yet it maintains a solid growth score, suggesting potential investment opportunities amidst the challenges.
- Walmart Market Performance: Walmart (WMT) is viewed as a catalyst for a rotation back into tech stocks, trading around $124 to $125 with a 28.45% annual return, demonstrating relative strength in a volatile market environment.
See More
U.S. Stocks Rise as Economic Data and Supreme Court Ruling Impact Markets
- Economic Slowdown: The annualized GDP growth rate for Q4 2025 fell to 1.4%, down from 4.4% in the previous quarter and below the 2.8% consensus estimate, indicating a slowdown that could affect investor confidence and consumer spending.
- Supreme Court Ruling: The U.S. Supreme Court ruled 6-3 to strike down tariffs imposed by the Trump administration, limiting the executive branch's ability to impose broad trade levies without congressional approval, which may impact future trade policies and market stability.
- Corporate Earnings Impact: Walmart (WMT) reported solid sales and earnings but issued a cautious outlook for FY27, guiding for EPS between $2.75 and $2.85, below the $2.97 consensus, which could lead to stock price volatility.
- M&A Activity: ZIM Integrated Shipping (ZIM) announced an acquisition agreement with German shipping company Hapag-Lloyd for $35 per share in cash, representing a 58% premium, with the deal expected to provide ZIM with approximately $4.2 billion in equity value, reflecting positive market response to its strategic review.
See More
Amazon and Meta: Growth Stocks to Hold for the Next Decade
- Amazon's Market Leadership: Amazon (AMZN) leads in both e-commerce and cloud computing, with its North American operating income rising 24% last year, showcasing strong operating leverage driven by its largest global logistics network.
- Cloud Business Growth: Amazon Web Services (AWS) is the company's most profitable and fastest-growing segment, achieving 24% revenue growth last quarter, with capital expenditures ramping up to $200 billion this year to seize market opportunities.
- Valuation Advantage: Amazon's forward P/E ratio is below 27 times, contrasting sharply with peers like Walmart and Costco, which trade above 40 times, indicating its stock's attractiveness for long-term investors.
- Meta's AI-Driven Growth: Meta (META) has leveraged AI to enhance its recommendation engine, accelerating revenue growth to 24%, with projections for Q1 growth between 26% and 34%, while also introducing ads on new platforms like WhatsApp and Threads to expand revenue streams.
See More
Three Top Real Estate Investment Trusts to Know
- Federal Realty Investment Trust: Federal Realty stands out with 58 consecutive years of dividend increases, qualifying as a Dividend King, focusing on high-quality open-air retail and mixed-use properties, and despite a smaller portfolio, it excels in high-income markets, likely continuing its dividend growth.
- Realty Income: As the sixth-largest REIT globally, Realty Income boasts over $61 billion in real estate across nine countries, relying on stable net-leased properties for dependable monthly dividends, having raised its payout for over 30 years, and will continue to drive dividend growth through new investments.
- Prologis: Prologis, one of the largest REITs, manages over $215 billion in assets, primarily investing in warehouses that support the global economy, with $3.2 trillion in goods flowing through its distribution centers annually, and plans to invest $30 billion to $50 billion in data centers over the next decade, creating $25 billion in value for investors.
- Dividend Growth Potential: These three REITs have a strong history of dividend growth, with Federal Realty, Realty Income, and Prologis employing investment strategies that make them ideal long-term holds, providing sustainable returns for investors.
See More
United Airlines Revamps Rewards Program to Attract Credit Card Customers
- Program Overhaul: United Airlines is reforming its rewards program to attract credit card customers, a move that may upset some as non-cardholders will lose certain mileage accrual opportunities.
- Mileage Earning Restrictions: Under the new policy, MileagePlus members without a United credit card will earn fewer miles on United flights, highlighting the airline's focus on credit card relationships.
- Premium Customer Benefits: Cardholders will receive a 10% discount on every United award flight booked, while non-cardholders will no longer earn any miles when booking basic economy, intensifying the airline's appeal to premium customers.
- Industry Trend Reflection: This shift in the airline industry aligns with broader economic trends, showcasing the bifurcation of consumer habits, as United's Chief Commercial Officer emphasizes that loyal customers deserve the best benefits in the industry.
See More
