Bottom line: Walmart stock is not a good buy right now. It drastically underperformed S&P 500 in 2021, so has a lot of ground to make up in 2022. In addition, Walmart stock is unlikely to be a huge winner due to its fundamentals, which are not outstanding.
Latest Walmart Inc (WMT) Stock News
Walmart Inc's trailing 12-month revenue is $576.0 billion with a 2.3% profit margin. Year-over-year quarterly sales growth most recently was 2.4%. Analysts expect adjusted earnings to reach $6.431 per share for the current fiscal year. Walmart Inc currently has a 1.8% dividend yield.
Walmart has received a consensus rating of Buy. The company's average rating score is 2.61, and is based on 15 buy ratings, 7 hold ratings, and 1 sell rating.
Stock Price Forecast
The 32 analysts offering 12-month price forecasts for Walmart Inc have a median target of 154.00, with a high estimate of 180.00 and a low estimate of 131.00. The median estimate represents a +17.87% increase from the last price of 130.65.
Walmart has made investments in its employees, such as increasing wages and offering benefits for same-sex partners. For investors, the company is an attractive investment, as it has outperformed the S&P 500 over the past few years.
Where Will WMT Stock Be In 10 Years? There's no crystal ball to predict exactly where WMT stock will be in 10 years, but logically it should double from the current price. This would imply a per-share price of roughly $300 or more.
Walmart Inc. just highlighted the dark side of inflation. The world's biggest retailer on Tuesday reported profit that fell short of Wall Street expectations and downgraded its outlook for full-year earnings per share from a mid-single-digit increase to a 1% decline.
Walmart stock projections
AI Pickup projected the stock price would reach $206.3 in 5 years-time, before declining to an average of $148.85 by 2030.
Walmart Inc quote is equal to 129.560 USD at 2022-07-20. Based on our forecasts, a long-term increase is expected, the "WMT" stock price prognosis for 2027-07-16 is 194.817 USD. With a 5-year investment, the revenue is expected to be around +50.37%. Your current $100 investment may be up to $150.37 in 2027.
Bottom line: Walmart stock is not a good buy right now. It drastically underperformed S&P 500 in 2021, so has a lot of ground to make up in 2022.
Now, Walmart's stock is mounting a comeback. The shares have commenced a rebound from their lows in mid-May, and now options traders are aggressively increasing their bets that Walmart will rebound another 6.5%. In total that would amount to a gain of more than 14% from two months ago.
World's third richest person Warren Buffet's Berkshire Hathaway has sold its last Walmart shares, ending a relationship of over 20 years. The world's largest retailer was once among Berkshire's five biggest equity holdings as recently as 2014, valued at over $5 billion.
Looking at the current rate of dividends, Target's yield of 2.1% is marginally better than Walmart's 1.8%. In addition, both companies are Dividend Aristocrats having paid a dividend for at least 25 years. So for Target, a dividend increase of 20-30% and more share buybacks to the tune of $7 billion.
By the financial year ending on June 30, 2018, Walmart's total assets were $204.5 billion, about five times larger than Target's comparatively modest $39 billion. In terms of market capitalization, Walmart's $319.67 billion is more than 6.5 times larger than Target's $44.41 billion, as of early July 2019.
If Walmart were to trade at 20x net profits a decade from now, its shares would be valued at $216 by the end of 2030. Compared to the current share price of $150, this equates to an upside potential of ~45%, or 4% annually.
Walmart (WMT) has 9 splits in our Walmart stock split history database. The first split for WMT took place on August 25, 1975.
Walmart has increased its annual cash dividend every year since first declaring a $0.05 per share annual dividend in March 1974. For additional historic dividend information, please see our annual reports.
WMT Stock Key Metrics
WMT stock last traded at an NTM normalized P/E of 19.48x, in line with the sector's average. As a result, we don't consider WMT stock undervalued, despite its recent massive hammering. Furthermore, its NTM EBITDA multiples and FCF yield do not indicate an undervalued WMT stock.
CEO Doug McMillon's update summed up the causes for the company's lackluster quarterly report. "Bottom line results were unexpected and reflect the unusual environment. U.S. inflation levels, particularly in food and fuel, created more pressure on margin mix and operating costs than expected.”
Meanwhile, Walmart's portion of the market share is forecasted to drop over the next several years to 12.7%, down from 13.2% in 2021. Over the past couple of decades, Amazon and Walmart have competed in a game of tug-and-war, constantly re-configuring their businesses to keep up with one another.
Walmart closed Tuesday down 11.4%, marking its worst day since October 1987. On Wednesday, Walmart fell another 7%, while Target had its worst day in 35 years.
The drop meant that for the first time in many years, Walmart did not meet Wall Street's profit expectations, an ominous signal for other companies trying to navigate the current inflationary environment. Walmart's earnings of $1.30 per share in the quarter were lower than the $1.48 expected by many analysts.