Core Insights - Walmart (WMT) shares have significantly outperformed broader market indexes and peers, including Target (TGT) and Amazon (AMZN), with a year-to-date increase of +11.7% [1][2] - The upcoming quarterly results on August 21 will be crucial in determining if Walmart can sustain its stock momentum [1] Performance Comparison - Year-to-date performance shows Walmart up +11.7%, compared to the Magnificent 7 group at +15.6%, S&P 500 at +9.9%, Amazon at +5.3%, and Target down -22.8% [2] - Performance dynamics shifted post-April 8 market lows, with Walmart lagging behind the Magnificent 7, Amazon, and S&P 500 during that recovery period [3][7] Market Position and Strategy - Walmart's low-beta status and focus on essential goods contribute to its defensive stock attributes, providing stability amid market fluctuations [7][8] - The company has gained market share among higher-income households, driven by inflationary pressures and enhanced e-commerce capabilities [9][10] E-commerce and Revenue Growth - Walmart's e-commerce segment is now profitable, accounting for approximately 15% of total sales, with expectations to double this figure over time [12] - The company anticipates a +4% sales growth and operating income growth exceeding sales growth, having achieved +5.5% sales and +9.5% operating income growth in the past two years [15] Upcoming Earnings Expectations - Walmart is projected to report $0.73 in EPS on $175.51 billion in revenues, reflecting a year-over-year increase of +8.9% and +3.6%, respectively [16] - Same-store sales in the U.S. (excluding fuel) are expected to grow by +4.17%, slightly lower than the previous quarter's +4.8% [17] Retail Sector Overview - The retail sector is seeing strong earnings growth, with 21 of 32 S&P 500 retailers reporting a +20.5% increase in earnings year-over-year [21] - The overall earnings picture for the S&P 500 indicates a +11.4% increase in earnings and +5.8% revenue growth for 462 members that have reported [30][32]