Anticipating Q1 Earnings
As retailers unveil their first-quarter results in a bid to attract small investors, Walmart remains in the spotlight with their upcoming report scheduled for May 16. The retail giant’s performance will offer vital insights into current consumer trends, especially with Target’s earnings on the horizon. Investors are eagerly contemplating whether now presents a ripe opportunity to purchase Walmart’s stock.
Expectations for Q1
Zacks estimates forecast a 6% increase in Walmart’s Q1 earnings to $0.52 per share, alongside a presumed 4% growth in quarterly sales up to $159.33 billion. Projections hint at Walmart potentially surpassing earnings predictions, with an anticipated EPS of $0.54—2% higher than the Zacks Consensus.
Growth Trajectory and Future Outlook
In the fiscal year 2025, Walmart’s annual earnings are expected to climb by 6%, with an additional 8% hike in fiscal year 2026 to reach $2.55 per share. Total sales are projected to swell by 4% in FY25, and another 4% leap to $699.86 billion is forecasted for FY26.
Performance and Valuation Analysis
Despite Walmart’s stock lagging behind the S&P 500’s growth, its defensive hedge against inflation has seen a commendable 18% surge over the past year, outperforming Target. While Walmart trades at 25.6X forward earnings—slightly higher than the S&P 500—it maintains a promising forward P/S ratio of 0.7X, indicating a potential buying opportunity.
Strategic Takeaways
With a Zacks Rank #3 (Hold) going into the Q1 report, Walmart’s stock demonstrates a strong start in 2025. Although valuation signals a chance for better buying prospects in the future, long-term investors may find the current levels rewarding in the long run.
