On Friday, Walmart Inc. (NYSE:WMT) saw its share price target increased to $71.00 from Argus, up from the previous $71.00, by a prominent research firm, while the retailer's stock rating was kept at Buy.
The adjustment follows the company's announcement of first-quarter earnings that surpassed both the consensus and the firm's projections.
Walmart reported a robust start to fiscal year 2025, with first-quarter total revenue reaching $161.51 billion, a 6.0% increase from the previous year.
This figure exceeded the firm's estimate of $157.7 billion and the consensus of $159.6 billion. The company's return on investment also experienced growth compared to the prior year.
The impressive quarterly performance was partly attributed to a 21% surge in global e-commerce sales, buoyed by strong grocery pickup and delivery services in the U.S. Walmart's ability to attract higher-income customers, who have become a key driver of its market-share gains, was highlighted as a contributing factor to its success.
In the U.S., Walmart experienced like-for-like sales inflation of about 40 basis points during the quarter. This included mid-single-digit deflation in general merchandise and low single-digit inflation in food and consumables, as noted by CEO Doug McMillon.
The firm's decision to raise the price target reflects confidence in Walmart's continued growth and market-share expansion, particularly among more affluent shoppers. The company's latest financial results and strategic positioning have clearly resonated with both customers and investors alike.
InvestingPro Insights
Walmart Inc. (NYSE:WMT) has demonstrated a solid financial performance with key metrics indicating robust growth. According to InvestingPro data, Walmart's market capitalization stands at an impressive $515.91 billion, underlining its substantial presence in the market. The company's Price/Earnings (P/E) ratio is currently at 25.68, which, when adjusted for the last twelve months as of Q4 2024, slightly increases to 29.14. This showcases Walmart's profitability in relation to its share price.
InvestingPro Tips highlight Walmart's financial resilience and investor appeal. The company boasts a perfect Piotroski Score of 9, reflecting strong financial health. Additionally, Walmart has consistently rewarded its shareholders, raising its dividend for 29 consecutive years, with the last twelve months seeing a dividend growth of 11.16%. These factors contribute to the retailer's attractiveness as a long-term investment.
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