Why Walmart Stock Zoomed 4% Higher Today

Core Viewpoint - An analyst's upgrade of Walmart's stock recommendation has positively influenced investor sentiment, resulting in a more than 4% increase in stock value on a day when the S&P 500 index declined by nearly 0.5% [1] Recommendation Upgrade - DZ Bank's Mike Pohn upgraded Walmart's stock recommendation from hold to buy, setting a price target of $110 per share, which is approximately 13% higher than its recent closing price [2] - The timing of the upgrade coincided with Walmart's release of its fiscal 2025 results, suggesting a connection between the two events [2] Financial Performance - In the fourth quarter, Walmart achieved a revenue growth of 4% year over year, reaching nearly$ 181 billion, and improved its non-GAAP earnings per share (EPS) by 10% to $0.66, both surpassing consensus analyst estimates [3] - Despite the positive revenue and EPS growth, Walmart's guidance for adjusted EPS for fiscal 2026 is between$ 2.50 and $2.60, which falls short of the average analyst estimate of$ 2.77 [4] Future Outlook - The company is recognized as a successful retail operation with a strong potential for future sales and profitability growth, supported by a recent 13% dividend increase [5]