Walmart Stock Performance and Valuation Concerns

Walmart (WMT) shares have surged 13% year-to-date, outpacing broader market trends, yet analysts caution the stock may be overvalued. The retailer's 29% gain over the past year reflects strong momentum, driven by innovative initiatives like live-streamed shopping events and consistent revenue beats. However, recent pressure emerged after Q2 earnings missed estimates—the first shortfall since 2022—with adjusted EPS of $0.68 versus $0.74 expected.

CEO Doug McMillon remains bullish on 2025 prospects, citing inventory replenishment and cost management as key focus areas. At $102.20 per share, valuation debates intensify as Simply Wall St analysts scrutinize price-to-fair-value metrics. The stock's current trajectory mirrors broader retail sector tensions between growth narratives and macroeconomic headwinds.