WMT shares drop, but growth drivers remain strong – Magic Post

WMT shares drop, but growth drivers remain strong

 – Magic Post

Wal Mart today

Walmart Inc. Logo. Stock
97.90 dollars -4.67 (-4.55 %)

As of 08/21/2025 03:59 pm

52 weeks
75.01 dollars

105.30 dollars

Profit
0.96 %

P/E ratio.
41.84

The target price
109.93 dollars

American -made Galleot Mart Nyse: wmt The undisputed shares of the world in the consumer food sector. As of the closure of August 21, walmart shares have achieved a total return of about 141 % over the past five years, as the market value has achieved about 782 billion dollars.

However, amazon.com Nasdaq: amzn It increases its competitor against the Wall Mart, which puts a continuation of the company’s concern. Wall Mart also missed profits. Below, we will avoid the latest financial results for Walmart, which was issued on August 21 and analyze the competition between these two companies. In the end, is Walmart still one of the best plays in consumer foodstuffs?

Why was Eps Walmart’s Eps exaggerated

Wall Mart share expectations today

The stock price expectations for 12 months:
109.89 dollars
He buys
Based on 31 analyst classification
The current price 97.91 dollars
High expectations 130.00 dollars
Average expectations 109.89 dollars
Low expectations 91.00 dollars

Details of Wall Mart shares.

In the fiscal year 2026 Q2, Walmart has made revenues From about 177 billion dollarsIt is equal to a growth rate of 4.8 %. Because of the international imprint of Walmart, this number was negatively affected by $ 1.5 billion of the coin opposite winds. Walmart sets a continuous currency growth rate at 5.6 %. In general, these figures beat Wall Street.

However, the company erred the modified arrow profits (EPS), which came in 68 cents. This was less than 6 cents less than expected. The shares decreased by 4.5 % after issuing profits.

However, this Miss EPS was almost fully calculated, an increase of $ 450 million at the expected costs of the company for public responsibility and workers’ compensation claims. Although the number of claims is low, the cost of solving each is increasing. As a result, the company now puts more money to pay these claims to move forward. Although this is definitely not positive, it is not likely to be a frequent problem. This makes the company’s profits “Miss” not excessively. Walmart has strengthened its directives on multiple fronts as a positive sign for investors.

The company is now expecting a net sales of fixed currency between 3.75 % and 4.75 % for the full fiscal year, with a significant increase from a range from 3 % to 4 % previously. Walmart also increased from the middle point of the modified EPS directions in the full fiscal year to $ 2.57, up from $ 2.55 by.

The company enhances EPS instructions for the entire year that it expects the charge of entitlement to some stage during the fiscal year 2026. This guidance is raised even though Miss Q2 indicates that the company’s expectations rise even in the face of the opposite winds.

Delivery of basic measures and growth drivers

One of the most important standards of Wall Mart is the similar sales growth in the United States. This number came by 4.6 %, which is a strong acceleration of 4.2 % a year ago. In addition, the company US e -commerce sales increased by 26 %A strong acceleration of 22 % a quarter. Walmart’s global advertising business has grown 46 %, and is a moderate slowdown of 50 % in the last quarter. Finally, the company’s organic fee growth contract is 15 %.

These fees refer to the subscriptions in the Walmart+ Walmart service, which include privileges such as today’s delivery and fuel discounts. Walmart+ is Walmart’s answer to Amazon Prime. The advertising and membership work of the company is especially important as investors are the future of this stock.

They are the sources of revenue higher than the margin, allowing Walmart to increase the profitability of the total business because they become larger ingredients.

However, Amazon is definitely fierce competition for Wall Mart. In the first quarter, Amazon said it had made more than $ 100 billion in US grocery sales in the previous year. This number significantly excludes full food companies and fresh companies.

The company intensifies its efforts more, which recently adds a delivery service on the same day to the damable groceries. However, industry experts note that there is a great task.GapWhen consumers comes to buy a new grocery from Amazon.

In general, investors will have to wait and know if this offer is really holding. Meanwhile, Walmart continues to take the market share.

Walmart Strong Q2 maintains the upside down expectations

The Wal -Mart price rate rose forward to about 37X. However, the strong growth of the emerging revenue drivers in the upper margin plays a major role in this.

In general, with the company’s ability to continue to find new ways to grow, the stock still seems to be one of the best plays in consumer food. However, the progress of the new Amazon offer needs close monitoring. The signs that they put a large service in its market share in Walmart will be worried.

Before you think about Walmart, you will want to hear this.

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