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."
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 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
-
The Best Aerospace and Defense ETFs to BuyThe best aerospace and defense ETFs can help investors capitalize on higher government defense spending or hedge against the potential of a large-scale conflict.
-
Walmart Takes on Prime Day With Competing July Deals EventWalmart is launching its own multi-day sales event to rival Amazon Prime Day — and it could be a smart time to shop, even if you're not a member.
-
The Best Aerospace and Defense ETFs to Buy
The best aerospace and defense ETFs can help investors capitalize on higher government defense spending or hedge against the potential of a large-scale conflict.
-
Roth IRA Conversions in the Summer? Why Now May Be the Sweet SpotConverting now would enable you to spread a possible tax hit over more than one payment while reducing future taxes.
-
A Financial Expert's Three Steps to Becoming Debt-Free (Even in This Economy)If debt has you spiraling, now is the time to take a few common-sense steps to help knock it down and get it under control.
-
I'm an Insurance Expert: This Is How Your Insurance Protects You While You're on VacationHere are three key things to consider about your insurance (auto, property and health) when traveling within the U.S., including coverage for rental cars, personal belongings and medical emergencies.
-
Stock Market Today: It's 'Most Sectors Go' Ahead of Independence DayThe resilience trade continues to work, even for sectors and stocks with specific uncertainties.
-
June Jobs Report Dashes July Rate Cut Hopes: What the Experts Are SayingThe June jobs report shows that hiring remains strong and gives the Fed a little extra breathing room when it comes to interest rates.
-
Investing Professionals Agree: Discipline Beats Drama Right NowBig portfolio adjustments can do more harm than good. Financial experts suggest making thoughtful, strategic moves that fit your long-term goals.
-
'Doing Something' Because of Volatility Can Hurt You: Portfolio Manager Recommends Doing This InsteadYes, it's hard, but if you tune out the siren song of high-flying sectors, resist acting on impulse and focus on your goals, you and your portfolio could be much better off.
