Alexander Farnsworth
Walmart (NYSE: WMT) pursued 1.25% It rose in late afternoon trading and was the biggest gainer in the Dow Jones Industrial Average during the session.
Evercore ISI issued a positive tactical trading call for Walmart (WMT) earlier in the day as It called the stock a stable ship that provides a haven in the storm of consumer volatility. “We believe Walmart can hold its full-year sales/earnings guidance (unlike most of retail),” noted analyst Greg Melich. “We see near-term upside to the mid-$70s with upside bias to consensus estimates and stable traffic, share gain to stand out ahead of the choppy retail environment in the second and third quarters,” he added.
Analyst consensus estimates call for Walmart (WMT) to report revenue of $167.3 billion, earnings per share of $0.65, and U.S. comparable sales growth of 3.3%. The general view is that Walmart (WMT) will continue to benefit as a defensive stock pick as jittery trading in global markets continues, but the retail sector as a whole is eagerly waiting to hear the pulse of the Bentonville-based retail giant regarding the U.S. consumer.
Morgan Stanley expects another mega quarter for Walmart (WMT) as the company proves its leadership position in the market ahead of a weaker consumer environment. Analyst Simeon Gutman believes if Walmart (WMT) hits comparable sales estimates, it will be acceptable for the stock, especially as the rest of retail grows at a slower pace. “Given weak retail data for July, rising risks of a consumer slowdown, and an upcoming election in the second half of 2024, we think maintaining guidance should be acceptable given these uncertainties,” he stressed. On Seeking Alpha, analyst Uttam Dey believes an increased mix of higher-margin digital advertising revenue and membership growth should improve Walmart’s (WMT) margin profile.
