Shares of Wal-Mart (WMT, Financial) experienced a modest rise of 14 cents, or 0.15%, bringing the price to approximately $95.81. Trading activity revealed relatively light options volume with 18,000 contracts exchanged. Calls were more prevalent than puts, resulting in a put/call ratio of 0.4, which is lower compared to the usual level of around 0.61.
The implied volatility for WMT rose by 1.1 points to about 25.81, positioning it above the 52-week median. This suggests an anticipated daily price movement of $1.56. Additionally, the put-call skew widened, reflecting a growing interest in downside protection, as investors seek to safeguard against potential declines.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 37 analysts, the average target price for Walmart Inc (WMT, Financial) is $110.57 with a high estimate of $120.00 and a low estimate of $101.00. The average target implies an upside of 15.33% from the current price of $95.87. More detailed estimate data can be found on the Walmart Inc (WMT) Forecast page.
Based on the consensus recommendation from 43 brokerage firms, Walmart Inc's (WMT, Financial) average brokerage recommendation is currently 1.7, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Walmart Inc (WMT, Financial) in one year is $63.25, suggesting a downside of 34.03% from the current price of $95.87. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Walmart Inc (WMT) Summary page.
WMT Key Business Developments
Release Date: May 15, 2025
- Revenue Growth: Increased by 4% in constant currency.
- Profit Growth: Increased by 3% in constant currency.
- International Sales Growth: Increased by 7.8%.
- Walmart US Comp Sales: Grew by 4.5%.
- Sam's Club US Comp Sales (Excluding Fuel): Increased by 6.7%.
- E-commerce Growth: Increased by 22% globally.
- Gross Margin: Increased by 12 basis points.
- Walmart US Gross Margin: Increased by 25 basis points.
- SG&A Expenses: Deleveraged by 6 basis points.
- Adjusted Operating Income Growth: Increased by 3% in constant currency.
- Adjusted EPS: $0.61, higher than guided range.
- Inventory Level: Increased by 3.8%.
- Membership Fee Income Growth: Increased by nearly 15% across the enterprise.
- Advertising Business Growth: Increased by 50% across markets.
- Stock Repurchases: $4.6 billion in Q1.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Walmart Inc (WMT, Financial) achieved a 4% increase in sales and a 3% rise in profit in constant currency for the first quarter.
- E-commerce sales grew by 22% globally, with each segment delivering growth of at least 20%.
- The company reached a milestone by achieving profitability in its e-commerce business both in the US and globally.
- Walmart Inc (WMT) is expanding its delivery capabilities, with 95% of the US population soon to have access to delivery options of three hours or less.
- The advertising business saw a 50% increase, with Walmart Connect in the US growing by 31%.
Negative Points
- Tariffs, particularly those on Chinese imports, are creating significant cost pressures, which could lead to higher prices for consumers.
- The company faces challenges in managing inventory amid the uncertainty of tariff impacts and fluctuating demand.
- General merchandise sales declined slightly, with softness in electronics, home products, and sporting goods.
- There is a risk of larger swings in financial performance from quarter to quarter due to the dynamic and fluid operating environment.
- Higher-than-expected casualty claims expenses are impacting financial results, with expectations for this trend to persist for several quarters.
