Walmart (WMT) stock is one of the best Dow Jones stocks Thursday after the retail giant beat top- and bottom-line expectations for its fiscal second quarter and raised its full-year outlook.
In the three months ended July 31, Walmart's revenue increased 4.8% year-over-year to $169.3 billion, thanks in part to a 21% spike in global e-commerce sales. Its earnings per share (EPS) improved 9.8% from the year-ago period to 67 cents. At Walmart U.S. and Sam's Club, same-store sales were up 4.2% and 5.2%, respectively, excluding fuel.
"Our team delivered another strong quarter," said Walmart CEO Doug McMillon in a statement. "Each part of our business is growing – store and club sales are up, e-commerce is compounding as we layer on pickup and even faster growth in delivery as our speed improves. Our newer businesses like marketplace, advertising, and membership, are also contributing, diversifying our profits and reinforcing the resilience of our business model."
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results topped analysts' expectations. Wall Street was anticipating revenue of $168.5 billion and earnings of 65 cents per share, according to Yahoo Finance.
As a result of its strong first half, Walmart raised its full-year outlook. The company now expects fiscal 2025 revenue growth in the range of 3.75% to 4.75% and earnings per share to arrive between $2.35 to $2.43, up from its previous forecast of revenue growth between 3% to 4% and EPS of $2.23 to $2.37.
Walmart also provided guidance for its fiscal third quarter, calling for revenue to grow between 3.25% to 4.25% and earnings per share of 51 cents to 52 cents.
Is Walmart stock a buy, sell or hold?
Walmart has been the best Dow stock so far in 2024, up nearly 40% including today's pop. Unsurprisingly, Wall Street is overwhelmingly bullish on the blue chip stock.
For one, the consensus recommendation among the 40 analysts following WMT tracked by S&P Global Market Intelligence is a Buy and with strong conviction to boot. However, analysts have had a hard time keeping up with Walmart's impressive rally. Indeed, the average price target of $73.94 is right around where the stock is trading today. Price-target hikes could come down the pike after the positive earnings reaction.
"Those who have been following our work know that we have declared Walmart the poster child of our investing theme: Companies who have pivoted to digitization, robotics, the cloud and generative AI (and the suppliers of the picks and shovels)," said Nancy Tengler, CEO and chief investment officer of Laffer Tengler Investments, in a statement.
Tengler adds that Walmart is the investment firm's biggest holding among large-cap stocks in the consumer staples sector.
Related Content
-
Dow Jones Adds 463 Points as Rate-Cut Odds Rise: Stock Market TodaySome futures traders are now pricing in the possibility of a jumbo rate cut in September, which lifted stocks today.
-
Bullish IPO: Should You Buy BLSH Stock?Wall Street is buzzing about the Bullish IPO. The Peter Thiel-backed crypto company went public on August 13, and BLSH stock nearly doubled in its market debut.
-
Dow Jones Adds 463 Points as Rate-Cut Odds Rise: Stock Market Today
Some futures traders are now pricing in the possibility of a jumbo rate cut in September, which lifted stocks today.
-
Bullish IPO: Should You Buy BLSH Stock?
Wall Street is buzzing about the Bullish IPO. The Peter Thiel-backed crypto company went public on August 13, and BLSH stock nearly doubled in its market debut.
-
How to Build Your Financial Legacy Three Piggy Banks at a TimeA wealth adviser shares a childhood saving technique that taught him lessons of stewardship, generosity and responsibility and helped him answer the question we all need to answer to define our lives by impact rather than greed: 'What is this all for?'
-
Which of These Four Withdrawal Strategies Is Right for You?Your retirement savings may need to last 30 years or more, so don't pick a withdrawal strategy without considering all the options. Here are four to explore.
-
July CPI Report Ignites a Risk-On Rally: Stock Market TodayMarket participants price out worst-case scenarios for tariffs and inflation and will now turn their attention to employment and growth.
-
July CPI Report Boosts Rate-Cut Odds: What the Experts SayThe July CPI report shows that tariffs are having a slight impact on inflation, though not enough to keep the Fed from cutting interest rates.
-
DST Exit Strategies: An Expert Guide to What Happens When the Trust SellsUnderstanding the endgame: How Delaware statutory trust dispositions work, what investors can expect and why the exit is probably more important than the entrance.
-
Think Selling Your Home 'As Is' Means You'll Have No Worries? Think AgainThere are significant risks and legal obligations involved in selling a home 'as is' and by yourself, without a real estate agent.
