Walmart's Stock Surges 401% Over 10 Years, Attracts Attention
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: Fool
- Outstanding Stock Performance: Walmart's stock has surged by 401% over the past decade, significantly outperforming the S&P 500's return of 251%, indicating strong market performance and investor confidence.
- Stable Business Model: Leveraging its massive scale and distribution network, Walmart offers low-priced goods, and despite the low profit margins in grocery, its stability is crucial during economic uncertainties, attracting numerous consumers and shareholders.
- E-commerce Growth Potential: Walmart's e-commerce segment grew by 26% year-over-year in Q1, capturing a 9.2% market share, indicating its increasing competitiveness in the retail market; while overall growth may be slow, e-commerce is expected to drive revenue growth.
- Cautious Future Outlook: Although Walmart's forward P/E ratio stands at 41, significantly higher than the S&P 500's 22, reflecting its relatively expensive stock price, its safe business model and sustained market share suggest long-term investors can still expect it to outperform the market.
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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: 119.830
Low
119.00
Averages
125.75
High
136.00
Current: 119.830
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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- Strong Performance: Walmart reported a revenue increase of over 7% and a 5% rise in operating income for Q1 ending April 30, demonstrating resilience in the current economic climate.
- Stock Decline: Despite a 7% increase in stock price this year, Walmart's shares have slid about 8% in the past month, with its market cap now below $1 trillion, reflecting investor concerns about future performance.
- Valuation Risks: With a P/E ratio exceeding 40 times, significantly higher than the S&P 500's 26 times, investors may be overly optimistic about future growth, and if actual performance falls short, further stock price declines could be imminent.
- Declining Consumer Confidence: Rising oil prices due to Middle East conflicts and worsening economic conditions are likely to impact consumer sentiment and demand, leading Walmart's management to assert business strength during the earnings call, though the market remains skeptical.
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Walmart's Stock Surges 401% Over 10 Years, Attracts Attention
- Outstanding Stock Performance: Walmart's stock has surged by 401% over the past decade, significantly outperforming the S&P 500's return of 251%, indicating strong market performance and investor confidence.
- Stable Business Model: Leveraging its massive scale and distribution network, Walmart offers low-priced goods, and despite the low profit margins in grocery, its stability is crucial during economic uncertainties, attracting numerous consumers and shareholders.
- E-commerce Growth Potential: Walmart's e-commerce segment grew by 26% year-over-year in Q1, capturing a 9.2% market share, indicating its increasing competitiveness in the retail market; while overall growth may be slow, e-commerce is expected to drive revenue growth.
- Cautious Future Outlook: Although Walmart's forward P/E ratio stands at 41, significantly higher than the S&P 500's 22, reflecting its relatively expensive stock price, its safe business model and sustained market share suggest long-term investors can still expect it to outperform the market.
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- Significant E-commerce Growth: Walmart's e-commerce segment grew by 26% year-over-year in Q1, contributing to an overall revenue increase of 7.3% to $177.8 billion, indicating success in its digital transformation and market share expansion.
- Stable Business Model: Despite grocery profit margins typically hovering between 1% and 3%, Walmart's strategy of spreading thin profits across billions of items ensures ongoing returns for customers and shareholders, particularly amid rising economic uncertainty.
- Future Growth Potential: With a forward P/E ratio of 41, Walmart appears expensive compared to the S&P 500's 22, but its ongoing investments in e-commerce and established logistics network lay a solid foundation for stable growth moving forward.
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- Strong Performance: Walmart reported a revenue increase of over 7% and a 5% rise in operating income for Q1 ending April 30, demonstrating resilience in the current economic climate.
- Stock Decline: Despite a 7% increase in stock price this year, Walmart's shares have slid about 8% in the past month, with its market cap now below $1 trillion, reflecting investor concerns about future performance.
- Valuation Risks: With a P/E ratio exceeding 40 times, significantly higher than the S&P 500's 26 times, investors may be overly optimistic about future growth, and if actual performance falls short, further stock price declines could be imminent.
- Declining Consumer Confidence: Rising oil prices due to Middle East conflicts and worsening economic conditions are likely to impact consumer sentiment and demand, leading Walmart's management to assert business strength during the earnings call, though the market remains skeptical.
See More
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- Outstanding Stock Performance: Walmart's stock has surged by 401% over the past decade, significantly outperforming the S&P 500's return of 251%, indicating strong market performance and investor confidence.
- Stable Business Model: Leveraging its massive scale and distribution network, Walmart offers low-priced goods, and despite the low profit margins in grocery, its stability is crucial during economic uncertainties, attracting numerous consumers and shareholders.
- E-commerce Growth Potential: Walmart's e-commerce segment grew by 26% year-over-year in Q1, capturing a 9.2% market share, indicating its increasing competitiveness in the retail market; while overall growth may be slow, e-commerce is expected to drive revenue growth.
- Cautious Future Outlook: Although Walmart's forward P/E ratio stands at 41, significantly higher than the S&P 500's 22, reflecting its relatively expensive stock price, its safe business model and sustained market share suggest long-term investors can still expect it to outperform the market.
See More
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- Outstanding Stock Performance: Walmart's stock has risen by 401% over the past decade, significantly outperforming the S&P 500's return of 251%, showcasing its strong market position and investment appeal in the U.S. grocery sector.
- Significant E-commerce Growth: Walmart's e-commerce segment grew by 26% year-over-year in Q1, contributing to an overall revenue increase of 7.3% to $177.8 billion, indicating success in its digital transformation and market share expansion.
- Stable Business Model: Despite grocery profit margins typically hovering between 1% and 3%, Walmart's strategy of spreading thin profits across billions of items ensures ongoing returns for customers and shareholders, particularly amid rising economic uncertainty.
- Future Growth Potential: With a forward P/E ratio of 41, Walmart appears expensive compared to the S&P 500's 22, but its ongoing investments in e-commerce and established logistics network lay a solid foundation for stable growth moving forward.
See More
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- Resilient Performance: During the Q1 2026 earnings call, CEO Deon Stander noted a solid start to the year with a 1% organic sales increase and a 7% year-over-year rise in adjusted EPS, showcasing the company's resilience amid mixed segment results.
- Technological Investment: Avery Dennison plans to invest an additional $75 million in Wiliot and create a dedicated go-to-market team to accelerate the adoption of intelligent labels across retail, food, and logistics sectors, further solidifying its role as Wiliot's preferred commercial partner.
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- Fee Reduction Plan: The new settlement proposes to lower swipe fees by 0.1 percentage points over five years and caps standard consumer rates at 1.25%, which is expected to save merchants $38 billion and enhance their profitability.
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