Walmart(WMT) ZACKS·2025-01-24 15:26Stock Performance - Walmart's shares have rallied 13% over the past three months, outperforming the broader industry's rise of 11.7%, the Zacks Retail – Wholesale sector's growth of 11%, and the S&P 500's increase of 5.7% [1] - WMT stock closed at $93.81, just 2.5% below its 52-week high of $96.18, and trades above its 50 and 200-day moving averages, indicating strong upward momentum and price stability [4] Growth Drivers - Walmart's omnichannel strategy integrates online and in-store shopping, with initiatives like curbside pickup, delivery services, and Sam's Club "Just Go" checkout system enhancing customer convenience [6] - Global e-commerce sales grew 27% in Q3 FY2025, driven by expanded pickup and delivery options, a thriving marketplace, and advanced supply-chain automation [7] - High-margin businesses, including advertising, membership programs, and marketplace services, contributed to a 28% rise in advertising revenues and double-digit growth in Walmart+ and Sam's Club memberships [8] Financial Outlook - For FY2025, Walmart expects consolidated net sales growth of 4.8-5.1% (at constant currency), adjusted operating income growth of 8.5-9.25%, and adjusted EPS in the range of $2.42-$2.47, up from $2.22 in FY2024 [9] - Analysts have upgraded earnings estimates for the current fiscal year, reflecting optimism around Walmart's prospects [10] Valuation - Walmart's forward 12-month P/E ratio of 34.35 exceeds the industry average of 31.09, indicating market confidence in the company's long-term growth potential and resilience [11] Strategic Positioning - Walmart's expansive scale, digital transformation, and focus on value have made it a preferred destination for cost-conscious shoppers, with higher-income households now accounting for 75% of its U.S. market share gains [5][6] - International operations in key regions such as Mexico (Walmex), India (Flipkart and PhonePe), and China are vital components of Walmart's long-term growth strategy [8]