Walmart (WMT) is the best Dow Jones stock Tuesday after the retail giant beat top- and bottom-line expectations for its fiscal 2025 third quarter and raised its full-year outlook.
In the three months ended October 31, Walmart's revenue increased 5.5% year over year to $169.6 billion, including a 27% jump in global e-commerce sales. Its earnings per share (EPS) improved 13.7% from the year-ago period to 58 cents. At Walmart U.S. and Sam's Club, comparable-store sales rose 5.1% and 3.7%, respectively, excluding fuel.
"We had a strong quarter, continuing our momentum," said Walmart CEO Doug McMillon in a statement. "In the U.S., in-store volumes grew, pickup from store grew faster, and delivery from store grew even faster than that."
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free 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 beat analysts' expectations. Wall Street was anticipating revenue of $167.7 billion and earnings of 53 cents per share, according to Yahoo Finance.
As a result of its performance in the first nine months of the year, Walmart raised its full-year outlook. The company now expects to achieve revenue growth in the range of 4.8% to 5.1% and EPS between $2.42 to $2.47. This is up from its previous outlook for revenue growth in the range of 3.75% to 4.75% and earnings per share of $2.35 to $2.43.
"Our teams are executing and delighting our customers and members with the value and convenience they expect from Walmart," McMillon said.
"The company is simply a juggernaut. This quarter was the epitome of what type of company WMT is trying to become as the strong beat and rise was driven by omni-channel momentum," says David Wagner, portfolio manager at Aptus Capital Advisors. "This industry is starting to become more bifurcated between the 'has beens' and the 'winners' and WMT, alongside Amazon (AMZN) and Costco (COST), are biggest winners as they've skated to where the puck is going in the retail space."
Is Walmart stock a buy, sell or hold?
Walmart has turned in a stellar performance on the price charts, up 67% for the year to date on a total return basis (price change plus dividends). This easily outperforms the S&P 500's total return of 25%. Unsurprisingly, Wall Street is bullish on the blue chip stock.
According to S&P Global Market Intelligence, the average analyst target price for WMT stock is $87.64, representing implied upside of just over 2% from current levels. Additionally, the consensus recommendation is Buy.
Financial services firm Jefferies is one of the most bullish outfits on the consumer staples stock with a Buy rating and a Street-high $100 price target.
"WMT is scaling its investments in tech and e-commerce, and continued price investment has positioned it for future share gains," said Jefferies analyst Corey Tarlowe in a November 15 note. "Overall, we expect WMT to command an increasingly large share of customer spending through bolstered omnichannel capabilities, partnerships, and services. This justifies above-historical-average growth."
Related Content
-
Fed's Rate Cuts Could Have Impacts You Might Not AnticipateUnderstanding how lower interest rates could impact your wallet can help you determine the right financial moves to make.
-
Past Performance Is Not Indicative of Your Adviser's ExpertiseMany people find a financial adviser by searching online or asking for referrals from friends or family. This can actually end up costing you big-time.
-
I'm want to give my 3 grandkids $5K each for Christmas.You're comfortably retired and want to give your grandkids a big Christmas check, but their parents are worried they might spend it all. We ask the pros for help.
-
Past Performance Is Not Indicative of Your Financial Adviser's Expertise
Many people find a financial adviser by searching online or asking for referrals from friends or family. This can actually end up costing you big-time.
-
I'm a Financial Planner: If You're Not Doing Roth Conversions, You Need to Read ThisRoth conversions and other Roth strategies can be complex, but don't dismiss these tax planning tools outright. They could really work for you and your heirs.
-
Could Traditional Retirement Expectations Be Killing Us? A Retirement Psychologist Makes the CaseA retirement psychologist makes the case: A fulfilling retirement begins with a blueprint for living, rather than simply the accumulation of a large nest egg.
-
I'm a Financial Adviser: This Is How You Can Adapt to Social Security UncertaintyRather than letting the unknowns make you anxious, focus on building a flexible income strategy that can adapt to possible future Social Security changes.
-
I'm a Financial Planner for Millionaires: Here's How to Give Your Kids Cash Gifts Without Triggering IRS PaperworkMost people can gift large sums without paying tax or filing a return, especially by structuring gifts across two tax years or splitting gifts with a spouse.
-
'Boomer Candy' Investments Might Seem Sweet, But They Can Have a Sour AftertasteProducts such as index annuities, structured notes and buffered ETFs might seem appealing, but sometimes they can rob you of flexibility and trap your capital.
-
AI Stocks Lead Nasdaq's 398-Point Nosedive: Stock Market TodayThe major stock market indexes do not yet reflect the bullish tendencies of sector rotation and broadening participation.
-
Got $100 to Gamble? These Penny Stocks Could Be Worth the RideVolatile penny stocks are high-risk plays with potentially high rewards. If you have $100 you can afford to lose, these three names are worth a look.
