Core Insights - Walmart reported better-than-expected first-quarter fiscal 2026 results, with earnings per share at 61 cents, surpassing the Zacks Consensus Estimate of 57 cents, and a revenue increase of 2.5% year over year to $165.6 billion, exceeding the consensus mark of $165.59 billion [1][3] - The company maintained its full-year outlook but warned of potential tariff-related price hikes later this month [1] - U.S. comparable sales rose 4.6% year over year, and e-commerce sales increased by 22% globally, driven by in-store pickup, delivery, and its advertising platform [3] Revenue Guidance - Walmart issued revenue guidance for the second quarter of fiscal 2026, expecting revenue growth of 3.5%-4.5% [4] - For the full fiscal year 2026, Walmart anticipates revenue growth of 3%-4% to $674.5 billion and earnings per share in the range of $2.50-$2.60 [4] ETF Exposure - Several ETFs have significant allocations to Walmart, including: - Fidelity MSCI Consumer Staples Index ETF (FSTA) with a 12.1% allocation and $1.3 billion in assets [2][4] - Vanguard Consumer Staples ETF (VDC) with a 12.3% allocation and $7.4 billion in assets [5] - Consumer Staples Select Sector SPDR Fund (XLP) with a 9.9% allocation and $15.5 billion in assets [6] - VanEck Vectors Retail ETF (RTH) with a 9.4% allocation and $244.3 million in assets [7] - iShares U.S. Consumer Focused ETF (IEDI) with an 8.6% allocation and $35 million in assets [9]

Core Viewpoint - The consumer staples sector is demonstrating resilience amid a broader market downturn, outperforming the S&P 500 and breaking through previous resistance levels [1][2]. Group 1: Market Performance - The S&P 500 ETF has declined nearly 3% in a week, with most sectors following this downward trend due to rising economic uncertainty [1]. - The Consumer Staples Select Sector SPDR Fund (XLP) has outperformed the broader market, showcasing its defensive nature during turbulent times [2][3]. Group 2: Sector Characteristics - Consumer staples include essential goods such as food, beverages, household items, and personal care products, which maintain steady demand regardless of economic conditions [2]. - This sector is considered a "defensive" investment, providing consistent revenue and earnings, especially when growth stocks falter [3][4]. Group 3: Investment Opportunities - The XLP ETF offers diversified exposure to the consumer staples sector with a low expense ratio of 0.09% and a dividend yield of 2.2%, making it a cost-effective choice for long-term investors [6]. - Costco Wholesale, as XLP's largest holding, has seen its stock rise over 43% in the past year, with a projected EPS of $4.09 for its upcoming earnings report [8][9]. - Philip Morris International has surged 72% over the past year, with a robust dividend yield of 3.43% and strong earnings guidance for 2025, driven by a significant increase in oral product shipments [10][11].