Is $129 the Next Stop for Walmart Stock in 2025?

Core Insights - Walmart has demonstrated resilience in the face of challenges such as tariffs, achieving solid sales and earnings growth, which has driven its stock to an all-time high of $106.11 [1] Financial Performance - Walmart's diversified revenue base and strength in higher-margin businesses are contributing positively to profitability, with analysts optimistic about the stock's upside potential, targeting a price of $129, indicating a potential upside of approximately 25% from its closing price of $103.16 on September 26 [2] - The company has raised its full-year sales growth outlook in constant currency by 75 basis points, now targeting a range of 3.75% to 4.75%, reflecting strong year-to-date performance and expectations for continued market share gains [4] - Walmart maintained its adjusted operating income growth forecast at 3.5% to 5.5% in constant currency, indicating steady structural margin improvements despite cost pressures, and slightly raised its full-year EPS guidance to a range of $2.52 to $2.62 per share [5] E-Commerce Growth - E-commerce is emerging as a significant growth engine for Walmart, with digital sales increasing by 25% in the second quarter compared to the same period last year, showcasing the company's ability to meet customer demand for fast and convenient delivery [6] - Walmart U.S. e-commerce sales grew by 26%, an acceleration from the previous low-20% growth rates, with delivery from stores seeing a 50% increase; one-third of recent store deliveries reached customers in three hours or less, and 20% were completed in just 30 minutes, highlighting the efficiency of Walmart's extensive store network [7]