Is Walmart stock a buy ahead of earnings?

Core Viewpoint - Walmart is set to release its quarterly earnings report on February 19, raising questions about whether its stock is a buy ahead of this event, especially given its recent strong performance [1][5]. Group 1: Stock Performance - Walmart has become the first retailer to surpass a $1 trillion market capitalization, distinguishing itself from other blue-chip stocks that have struggled to maintain high valuations [2]. - Year-to-date, Walmart's stock has increased by 20.18%, while the S&P 500 is down 0.33% and the Dow Jones Industrial Average is up 2.31% [3]. Group 2: Earnings Expectations - The elevated valuation of Walmart's stock suggests a risk of a pullback if the upcoming earnings report does not meet expectations, as seen with other firms that faced significant market cap losses despite positive results [5][6]. - Walmart has beaten analyst earnings per share forecasts in three out of the last four quarters, indicating a likelihood of another positive outcome [7]. Group 3: Market Position and Demand - Walmart is positioned to benefit from both a strong economy and market conditions, as well as from downturns where consumers may seek its value pricing [8]. - The company is expected to see growth in its business volume, particularly in e-commerce, under favorable conditions [8]. Group 4: Analyst Ratings and Price Targets - Wall Street generally holds a positive view of Walmart, with an average 'Strong Buy' rating, although the 12-month price targets suggest a more cautious outlook, with an expected retracement of 0.63% to $133.04 [9]. - Bernstein's forecast suggests a drop to $129 while maintaining a 'Buy' rating, and the most optimistic forecast from Citi estimates a 9.79% increase to $147 [11].