Walmart Inc. Stock Price Targets
Comprehensive analysis of short, mid, and long-term price targets for Walmart Inc. (WMT).
Give me a comprehensive price target analysis for Walmart Inc. (WMT).
Price Target Lines Drawn:
- Low Target ($64): Red line extending into the future
- Median Target ($110): Orange line extending into the future
- High Target ($130): Green line extending into the future
Executive Summary
Walmart (WMT) currently trades around $97.96 and exhibits moderate valuation metrics relative to its historical averages. The analyst consensus strongly supports a bullish outlook, with median and high targets at $110 and $130, respectively. Short-term momentum appears stable, with technical indicators showing some signs of consolidation. The stock's long-term potential remains attractive, considering earnings growth and operational efficiencies, albeit with notable risks from macroeconomic factors and competitive pressures.
Fundamental Analysis
| Metric | Value |
|---|---|
| Market Cap | $781.76 billion |
| Enterprise Value | $884.79 billion |
| Trailing P/E | 41.86 |
| Forward P/E | 36.01 |
| Price to Book | 9.34 |
| Return on Equity | 21.78% |
| Profit Margins | 2.75% |
| Gross Margins | 24.88% |
| Debt to Equity | 75.78% |
| Total Cash | $9.31 billion |
| Total Debt | $68.69 billion |
| Dividend Yield | 0.92% |
Valuation indicates the stock is reasonably valued considering its growth prospects, with a PEG ratio currently unavailable.
Earnings Analysis
- Recent Earnings: Consistent net income (~$4.5 billion) across recent quarters.
- EPS Trends: Moderate growth observed, with EPS increasing from approximately 0.5729 to 0.60404 in the last quarter.
- EPS Revisions: Recent upward revisions in both short and long-term EPS forecasts suggest positive sentiment among analysts.
- Earnings Quality: Revenue and gross margins remain stable, supporting earnings sustainability.
Technical Analysis
- Current Price Action: Slight consolidation near the 50-day moving average (~92.3).
- Moving Average: Price above the 50-day MA indicates a bullish trend.
- RSI: Currently at ~49, implying neither overbought nor oversold conditions.
- MACD: Slight upward momentum with MACD near zero, supporting prior bullish indications.
Analyst Consensus & Price Targets
| Metric | Value |
|---|---|
| Number of Analysts | 37 |
| Target Low/Median/High | $64 / $110 / $130 |
| Mean Price Target | $111.14 |
The consensus targets suggest a robust growth expectation, with room for appreciation from the current price.
Price Target Analysis
- Short-Term (3 months): Target ~$110 — supported by current momentum and analyst sentiment; key drivers include continued earnings growth and macroeconomic stability.
- Mid-Term (12 months): Target ~$110-$130 — driven by operational efficiencies, digital transformation, and recovery in consumer sentiment.
- Long-Term (3+ years): Target ~$110-$130 — supported by strategic initiatives, expansion, and dominance in retail sectors; risks include economic downturns and competitive pressures.
Key Risks & Opportunities
| Risks | Opportunities |
|---|---|
| Economic slowdown, inflation pressures | Growth in e-commerce and international markets |
| Competitive retail landscape | Enhanced supply chain efficiency |
| Margin compression from inflation | Strategic acquisitions and partnerships |
Investment Recommendation
Hold to Moderate Buy over a 12-24 month horizon, with an expected return potential of approximately 10-20%, fueled by earnings growth and strategic initiatives, balanced against macroeconomic risks.
Note: The drawn support and resistance lines provide visual cues for potential price zones, with the median target (~$110) aligning closely with current analyst sentiment and technical levels.