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Where Will Walmart Stock Be in 1 Year?
WMTWalmart(WMT) The Motley Fool·2025-03-19 01:00

Core Viewpoint - Walmart's stock has experienced significant volatility, with a 19% decline from its all-time high due to muted guidance and economic concerns [1][5][8] Group 1: Company Performance - In fiscal 2025, Walmart's net sales increased by 5.6% year-over-year on a constant currency basis, and adjusted EPS rose by 13.1% to 2.51,exceedinginitialtargets[3][7]Theecommercesegmentsawa202.51, exceeding initial targets [3][7] - The e-commerce segment saw a 20% sales increase in the fourth quarter, contributing significantly to comparable store sales growth, indicating improved competitiveness against Amazon [4][7] Group 2: Future Guidance - For fiscal 2026, Walmart expects net sales growth of 3% to 4%, a slowdown compared to the previous year [5][7] - The EPS target for fiscal 2026 is set between 2.50 and 2.60,whichisamodestincreasefromfiscal2025andbelowanalystconsensusof2.60, which is a modest increase from fiscal 2025 and below analyst consensus of 2.76 [6][7] Group 3: Market Context - The stock's valuation has decreased from nearly 40 times its consensus fiscal 2026 EPS to around 32, still slightly above its five-year average P/E ratio of 31 [8] - Economic uncertainties, including trade tariffs and mixed labor market indicators, may impact Walmart's supply chain and pricing strategy, adding risk to earnings [7][8] Group 4: Investment Outlook - Walmart is expected to remain volatile as the global economic conditions evolve, but it is well-positioned to reward shareholders over the long term [9]