Walmart Shares Jump 40% in a Year: Should You Still Buy Now?

Core Insights - Walmart Inc. (WMT) maintains its position as a retail leader, driven by a strong omnichannel strategy, broad scale, and continuous innovation, resulting in a stock growth of 40.1% over the past year, closely matching the industry's 40.2% growth [1][3][7] Performance Comparison - Walmart's stock performance is notably superior compared to peers such as Kroger Co. (KR) with 36% growth, Ross Stores, Inc. (ROST) with a 12% decline, and Target Corporation (TGT) with a 29.8% drop, indicating Walmart's adaptability in a challenging retail environment [3][7] Stock Price and Technical Indicators - As of the latest trading session, Walmart's stock closed at $96.81, which is 8.1% below its 52-week high of $105.30, with a solid upward trajectory supported by being above the 200-day simple moving average of $91.20, indicating sustained bullish momentum [4][5] Operational Strength - Walmart demonstrates operational strength through a diversified business model and effective execution across physical and digital retail channels, enhancing customer engagement [9] Omnichannel Ecosystem - The robust omnichannel ecosystem integrates stores with digital infrastructure, creating a seamless shopping experience, supported by data analytics and technology investments [10] Comparable Sales Growth - In the first quarter of fiscal 2026, Walmart's comparable sales (excluding fuel) increased by 4.5%, driven by a 1.6% rise in transactions and a 2.8% gain in average ticket size, with the grocery segment showing mid-single-digit comp growth [11] E-commerce Growth - Walmart's global e-commerce sales surged by 22% in the fiscal first quarter, with U.S. e-commerce sales rising by 21%, highlighting strong fulfillment and marketplace activity [12] External Pressures - Near-term headwinds include tariff-related pressures and foreign exchange volatility, with adverse currency movements impacting reported sales by $2.4 billion in the first quarter of fiscal 2026 [13][14] Valuation Metrics - Walmart's forward 12-month price-to-earnings (P/E) ratio is 35.48, higher than the industry average of 32.62, indicating potential overvaluation compared to peers like Kroger, Ross Stores, and Target [17] Investment Guidance - Despite external pressures, Walmart's scale, agility, and investments in digital infrastructure and high-margin verticals support sustainable growth, though elevated valuation metrics suggest a cautious approach for near-term investors [19]