Stock Price & Analysis

Based on the provided data and recent market activity, here's my analysis on whether to buy or sell WMT stock:

Technical Analysis

The stock is showing bearish signals in the short term:

• RSI(14) at 39.05 indicates neutral to slightly oversold conditions
• MACD shows bearish divergence with MACD(1.58) crossing below signal line(2.43)
• Stock is trading below its 5-day SMA of 100.76 and 10-day SMA of 101.90

Recent Price Action

• Current price: $94.82 (as of Feb 21 close)
• Regular market decline of -2.50% on Feb 21
• Trading significantly below recent highs around $102-103

Fundamental Concerns

The stock appears overvalued:

• Current P/E of 35x vs 5-year average of 24x (50% premium)
• EV/EBITDA of 18x vs 5-year average of 12x (50% premium)
• EV/Sales of 1.2x vs 5-year average of 0.8x (50% premium)

Recommendation: SELL

The combination of technical weakness and stretched valuations suggests taking profits at current levels. While Walmart remains a strong company fundamentally, the stock price has run too far ahead of fundamentals. The recent earnings-related selloff likely marks the start of a period of consolidation or decline as valuations normalize.

Based on the provided data and recent news, here's a price prediction analysis for Walmart (WMT) stock in 2025:

Price Target Analysis for 2025

WMT stock is expected to reach $96-98 by end of 2025, representing a moderate upside from current levels, driven by three key factors:

1. Recent Q4 FY2025 earnings beat expectations with revenue of $180.6 billion and adjusted EPS of $0.66 vs $0.65 estimated. However, management warned about potential first quarterly profit decline in three years.

2. E-commerce growth remains strong at 16% YoY, with digital advertising revenue (Walmart Connect) up 24% in US market, suggesting continued momentum in high-margin business segments.

3. Forward guidance indicates net sales growth of 3-4% and adjusted operating income growth of 3.5-5.5% for FY2026, pointing to steady but modest expansion.

Key Supporting Evidence:

• Current analyst consensus shows a "Strong Buy" rating with mean price target of $99.92
• Goldman Sachs maintains Buy rating with $101 target, citing market share gains and improving profitability profile
• Morgan Stanley raised price target to $106, highlighting WMT's scale and investment in retail tech

The stock is likely to face resistance around $104.56 (Fibonacci R1) with support at $94.49 (Fibonacci S1), suggesting a consolidation phase ahead after recent gains.

The S1 support level for WMT Stock is $94.11 ,The R1 resistant level for WMT Stock is $104.18.

As of the end of day on 2025-02-27, the price of WMT Stock was $97.05.

The target price for WMT Stock according to analyst rating is 112.24, with the highest price target at 120.00 and the lowest at 99.00. Analysts have a Strong Buy rating on WMT Stock overall.

The market cap of WMT is $772.8B.

Based on the provided data and recent market performance, here's a concise analysis of WMT's valuation:

Current Valuation Analysis: WMT appears overvalued based on several key metrics. The stock's P/E ratio has risen dramatically to 86.38x in FY2024 from 33.68x in FY2023 [Relevant Data], significantly above its historical average. The EV/EBITDA multiple has also increased to 12.57x, showing premium pricing compared to historical levels.

Growth vs. Valuation: While WMT shows solid revenue growth (648.1B in FY2024 vs 611.3B in FY2023), the current valuation multiples appear stretched relative to this growth rate. The stock's price appreciation of 72% in 2024 has pushed valuations well beyond fundamental justification.

Technical Indicators: The stock is currently showing bearish signals with RSI at 39.05 and MACD turning negative (-0.86), suggesting potential downward pressure on the price.

Market Position: At $94.78, WMT is trading significantly below its recent high of $96.18, with technical indicators suggesting further potential downside. The current price represents a premium valuation that appears difficult to justify even considering WMT's market leadership and e-commerce growth.

Conclusion: WMT is currently overvalued due to stretched multiples, technical weakness, and a valuation disconnect from fundamental growth rates. The stock's significant price appreciation in 2024 has pushed it beyond reasonable valuation levels, despite solid underlying business performance.

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 e-commerce websites and mobile applications, located throughout the United States, Africa, Canada, Central America, Chile, China, India and Mexico. It operates through three segments: Walmart U.S., Walmart International and Sam's Club. The Walmart U.S. segment includes the Company's mass merchant concept in the United States, as well as e-commerce, which includes omni-channel initiatives and certain other business offerings such as advertising services through Walmart Connect. It operates under the Walmart and Walmart Neighborhood Market brands. The Walmart International segment consists of the Company's operations outside of the United States, as well as e-commerce and omni-channel initiatives. The Sam's Club segment includes the warehouse membership clubs in the United States, as well as e-commerce and omni-channel initiatives.

Based on the provided references and data, here is a concise 3-sentence price prediction for Walmart (WMT) stock in 2030:

According to multiple analyst forecasts, Walmart's stock price is expected to reach between $187-$250 by 2030, with a base case target of $225, driven by its expanding e-commerce business, digital advertising revenue growth, and international market penetration. The bullish case for $250 assumes successful execution of Walmart's digital transformation strategy and expansion of its high-margin advertising business from current $3.4 billion to potentially $15-20 billion annually by 2030, similar to Amazon's current ad revenue scale. The bear case of $187 factors in increased competition, potential regulatory headwinds, and margin pressure that could limit EPS growth to below 4% annually.

WMT has a total of 2100000 employees.