Walmart Inc Stock Forecast:
Based on 31 analyst’s forecasts for Walmart Inc. stock the average target price is USD 159.87 over the next 12 months. The analysts average rating for the stock is a “Strong Buy”. However, Stock Target Advisor’s analysis of the company is “Neutral” based on 8 positive and 9 negative indicators. The recent closing price of Walmart Inc.’s stock was USD 141.71. The stock price has decreased by 1.11% in the past week, 1.09% in the past month, and increased by 1.71% over the last year.
Walmart Inc. News:
Walmart’s stock has demonstrated its ability to withstand market turbulence, as it has only slightly increased by 0.2% over the past year, while the S&P 500 index has dropped by 8%.
The company’s success can be attributed to its strong online and in-store operations, as well as its efforts to improve delivery services through acquisitions and partnerships.
During the third quarter of fiscal 2023, Walmart’s U.S. sales rose thanks to an increased market share in grocery, which led to better-than-expected results for the top and bottom lines. This strong performance prompted the company to raise its guidance for the year, but its consolidated operating income and earnings per share are expected to be lower compared to the previous year due to ongoing cost inflation
Analysts Coverage Change:
Oppenheimer & Co. has a rating of “Outperform” and lowers the price target to USD 160 from USD 165 on Walmart (WMT:NYE) stock.
Positive Fundamentals:
Walmart Inc. stock is considered a good investment opportunity due to its various positive attributes. Firstly, it has a high market capitalization, making it one of the largest entities in its sector and among the top quartile of companies in terms of stability. Additionally, the stock has shown superior risk-adjusted returns compared to its peers, with low volatility and stable, consistent annual returns. The stock is also considered underpriced compared to book value and has a low debt-to-asset ratio, making it more flexible. Furthermore, the company has positive cash flow and free cash flow, with a high Gross Profit to Asset Ratio. These factors make Walmart Inc. stock a good option for value investors seeking long-term returns.
Negative Fundamentals:
Walmart Inc. stock has received criticism for several reasons including below median total returns, below median dividend returns, being overpriced compared to earnings and cashflow, poor return on equity and capital utilization, and low revenue and dividend growth. The company has underperformed its peers in terms of annual average total returns over the past 5 years, with a low average income yield compared to peers. The stock is also trading high compared to peers on a price-to-earnings and price-to-cash flow basis, which could be concerning for those considering buying it. Additionally, the company has delivered below median returns on equity and invested capital in recent quarters. The stock is also overpriced on a price-to-free-cash-flow basis, and the company has shown below median revenue and dividend growth in the past 5 years compared to its sector.
FA Score (Fundamental Analysis):
The fundamental analysis of Walmart Inc. is “Neutral” with a FA score of 4.7 out of 10, where 0 is very bearish and 10 is very bullish.
