Walmart (WMT) Stock Surges Over 30% in a Year Amid Valuation Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
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Source: Fool
- Strong Stock Performance: Walmart's stock has surged over 30% in the past year, nearly doubling the S&P 500's gain, demonstrating its resilience in an uncertain macroeconomic environment.
- Accelerated Revenue Growth: In Q3 of fiscal 2026, Walmart reported a 5.8% year-over-year revenue growth, an acceleration from 4.8% in the previous quarter, indicating robust performance in its core business.
- E-commerce and Advertising Surge: Walmart's global e-commerce sales grew 27% year-over-year, while its advertising business soared by 53%, showcasing the company's successful transformation into new revenue streams and enhancing future growth potential.
- Significant Valuation Risk: Despite strong business performance, Walmart's price-to-earnings ratio stands at 42, significantly higher than many fast-growing tech companies, prompting investors to carefully consider whether the current high valuation is justified.
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: 119.200
Low
119.00
Averages
125.75
High
136.00
Current: 119.200
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.
