WMT Stock Stumbles—Even as Analysts Boost Targets on E-Commerce Surge

Wall Street raises price targets, but Walmart shares shrug it off—because logic left the market years ago.

E-commerce gains? Check. Analyst optimism? Double-check. Stock price reaction? A resounding 'meh.'

Another day, another disconnect between fundamentals and trader sentiment. Maybe they’re too busy chasing meme stocks to notice.

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Increased Confidence

Five-star TipRanks-rated analyst Bradley Thomas of KeyBanc increased his price target on Walmart from $105 to $110, while maintaining an Overweight rating on the stock.

Thomas attended Walmart’s annual meeting in Bentonville, Arkansas, which gave him increased confidence that it will expand its market share into 2025 and beyond. This he said WOULD be buoyed by growth in its e-commerce and advertising sectors.

With annual revenue reaching $685.09 billion and a market capitalization of $777.85 billion, Thomas said Walmart maintains its position as a prominent player in consumer staples retail. He added that Walmart also has the capacity to boost operating profit at a pace surpassing sales growth over an extended period.

He highlighted the virtuous cycle emerging within Walmart’s digital business, suggesting that its growth is likely to drive further expansion.

Looming Risks

Despite the looming risks to consumer spending due to the potential impact of tariffs, particularly as the back-to-school season approaches, Thomas said Walmart is well-equipped to navigate these challenges. This could mean increased prices but it also means the ramping up of technology such as drones to boost the consumer experience.

Four-star TipRanks-rated analyst Simeon Gutman from Morgan Stanley recently maintained a Buy rating on the stock and a price target of $115.

He said Walmart has diverse income streams which are gaining momentum, such as same-day delivery expansion, growth in merchandise sales and increased advertising income through Walmart Connect.

Gutman also talked up the early-stage potential of Walmart’s e-commerce operations, which are showing accelerated sales and higher profit conversion rates.

Is WMT a Good Stock to Buy Now?

On TipRanks, WMT has a Strong Buy consensus based on 28 Buy and 2 Hold ratings. Its highest price target is $120. WMT stock’s consensus price target is $109.66 implying a 13.10% upside.

See more WMT analyst ratings