Walmart Inc. (WMT) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Walmart Inc. (WMT) Consumer Business Overview

Walmart Inc. is a global leader in retail, operating a vast network of stores and e-commerce platforms. With a focus on low prices and a wide assortment of products, Walmart serves millions of customers worldwide, competing with other major retailers and e-commerce giants in the consumer defensive sector.

What Is the Investment Thesis for WMT?

Walmart Inc. presents a stable investment opportunity within the consumer defensive sector, driven by its established market position and diverse revenue streams. With a market capitalization of $910B and a dividend yield of 0.74%, Walmart offers a blend of value and income. The company's focus on e-commerce and international expansion provides growth catalysts, while its scale offers competitive advantages. However, a P/E ratio of 40.6 indicates a premium valuation. Ongoing investments in technology and supply chain optimization are expected to drive future efficiencies. Investors should monitor the company's ability to maintain margins amid inflationary pressures and evolving consumer preferences. The beta of 0.66 suggests lower volatility compared to the broader market.

Based on FMP financials and quantitative analysis

WMT Key Highlights

Market Cap of $910B reflects Walmart's dominant position in the retail sector.

• P/E ratio of 40.6 indicates a premium valuation compared to some peers, reflecting investor expectations for future growth.
• Gross Margin of 24.9% demonstrates Walmart's ability to manage costs and maintain profitability.
• Dividend Yield of 0.74% provides a steady income stream for investors.
• Beta of 0.66 suggests lower volatility compared to the broader market, making it a relatively stable investment.

Who Are WMT's Competitors?

WMT is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are WMT's Key Strengths?

Large scale and extensive store network.

• Strong brand recognition and reputation for low prices.
• Efficient supply chain and logistics.
• Growing e-commerce platform.

What Are WMT's Weaknesses?

Relatively low profit margins.

• Dependence on the U.S. market.
• Negative perception related to labor practices.
• Exposure to intense competition.

What Could Drive WMT Stock Higher?

Continued expansion of e-commerce capabilities and online sales growth.

• Strategic investments in technology and supply chain optimization.
• Potential acquisitions or partnerships to expand market reach and product offerings.
• Development and promotion of private label brands to improve margins.
• Expansion of financial and healthcare services to diversify revenue streams.

What Are the Key Risks for WMT?

Rich valuation — a P/E of 40.6 runs well above the Consumer Defensive sector’s ~28x, leaving little room for a miss.

• Insider selling — insiders were net sellers of roughly $537.8M recently.
• Intense competition from other retailers and e-commerce companies.
• Economic downturns and inflationary pressures affecting consumer spending.
• Supply chain disruptions and rising costs impacting profitability.
• Changes in consumer preferences and shopping habits.
• Negative perception related to labor practices and environmental impact.

What Are the Growth Opportunities for WMT?

• E-commerce Expansion: Walmart's continued investment in its e-commerce platform, including walmart.com and other sites, presents a significant growth opportunity. This expansion allows Walmart to reach a broader customer base and drive revenue growth.
• International Market Penetration: Walmart's international segment offers substantial growth potential, particularly in emerging markets. By expanding its presence in countries like Mexico, Canada, and India (through Flipkart and PhonePe), Walmart can tap into new customer bases and diversify its revenue streams. The growth of middle-class populations and increasing disposable incomes in these markets create favorable conditions for Walmart's expansion efforts. The company's ability to adapt its business model to local preferences will be crucial for success.
• Enhancement of Private Label Brands: Walmart's focus on developing and marketing its private label brands, such as Allswell, Athletic Works, and Equate, provides an opportunity to improve margins and build customer loyalty. Private label brands typically offer higher profit margins compared to national brands, and Walmart's scale allows it to negotiate favorable terms with suppliers. By expanding its private label offerings and enhancing their quality and appeal, Walmart can attract price-conscious consumers and strengthen its competitive position.
• Financial Services Expansion: Walmart's provision of financial services, including money transfers, bill payments, and co-branded credit cards, represents a growth opportunity. By expanding its financial services offerings and making them more accessible to its customer base, Walmart can generate additional revenue and enhance customer loyalty. The increasing demand for convenient and affordable financial services, particularly among underserved populations, creates a favorable environment for Walmart's financial services business.
• Healthcare Services: Walmart's expansion into healthcare services, including pharmacy, optical, and hearing services, offers a significant growth opportunity. The aging population and rising healthcare costs are driving demand for accessible and affordable healthcare solutions. By leveraging its existing store network and customer base, Walmart can provide convenient and cost-effective healthcare services, attracting new customers and enhancing its brand image. The company's focus on preventative care and wellness programs can further differentiate its healthcare offerings.

What Are WMT's Competitive Advantages?

• Scale: Walmart's vast scale provides significant cost advantages and bargaining power with suppliers.
• Brand Recognition: Walmart is a well-known and trusted brand with a strong reputation for low prices.
• Supply Chain Efficiency: Walmart's efficient supply chain enables it to offer competitive prices and maintain inventory levels.
• Extensive Store Network: Walmart's large network of stores provides convenient access for millions of customers.
• E-commerce Platform: Walmart's growing e-commerce platform expands its reach and provides additional revenue streams.

What Does WMT Do?

Walmart Inc., founded in 1945 and headquartered in Bentonville, Arkansas, is a multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores. The company was initially known as Wal-Mart Stores, Inc. before changing its name to Walmart Inc. in February 2018. Walmart operates through three segments: Walmart U.S., Walmart International, and Sam's Club. Walmart U.S. constitutes the largest portion of the company’s revenue, focusing on retail operations within the United States. Walmart International includes retail operations and eCommerce websites in various countries, such as Mexico (walmart.com.mx) and Canada (walmart.ca), as well as investments like Flipkart and PhonePe. Sam's Club operates membership-only warehouse clubs. Walmart offers a wide array of products, including grocery and consumables, health and wellness products, and home and apparel. The company also provides consumer electronics, software, video games, and financial services. Walmart's business model emphasizes everyday low prices and a broad selection of merchandise, appealing to a wide range of customers. The company markets merchandise under private brands, including Allswell, Athletic Works, Equate, and Free Assembly.

What Products and Services Does WMT Offer?

• Operates retail stores, including supercenters, supermarkets, and discount stores.
• Manages membership-only warehouse clubs under the Sam's Club brand.
• Runs e-commerce websites, such as walmart.com, walmart.ca, and flipkart.com.
• Offers a wide range of products, including grocery, consumables, health and wellness items, and home and apparel.
• Provides financial services, such as money transfers, bill payments, and co-branded credit cards.
• Markets merchandise under private brands, including Allswell, Athletic Works, and Equate.
• Operates digital payment platforms like PhonePe.

How Does WMT Make Money?

• Generates revenue through the sale of goods and services in its retail stores and online platforms.
• Emphasizes everyday low prices to attract price-conscious consumers.
• Leverages its scale and supply chain to negotiate favorable terms with suppliers.
• Offers a wide assortment of merchandise to cater to diverse customer needs.
• Provides membership-based services through Sam's Club.

What Industry Does WMT Operate In?

Walmart operates in the competitive discount stores industry within the broader consumer defensive sector. The industry is characterized by intense competition, evolving consumer preferences, and the increasing importance of e-commerce. Market trends include a growing demand for online shopping, a focus on value and convenience, and the expansion of private-label brands. Walmart competes with companies like Costco Wholesale Corporation (COST), The Kroger Co. (KR), Dollar General Corporation (DG), and Dollar Tree, Inc. (DLTR). The consumer defensive sector is generally considered stable, as demand for essential goods remains relatively constant regardless of economic conditions.

Who Are WMT's Key Customers?

• Price-sensitive consumers seeking value and convenience.
• Families and households looking for a wide range of products.
• Members of Sam's Club who pay for access to bulk discounts.
• Online shoppers seeking a convenient and accessible shopping experience.
• Individuals and families utilizing Walmart's financial and healthcare services.

Company Profile

Walmart Inc. operates in the Discount Stores industry within the Consumer Defensive sector. It is headquartered in Bentonville, US. The company is led by CEO John R. Furner. WMT has traded publicly since 1972.

Return on equity for Walmart Inc. stands at 22.7%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 7.5%, showing how much profit it generates from its asset base. WMT trades at a trailing price-to-earnings ratio of 40.56, above the Consumer Defensive sector average of ~28x. Its free cash flow yield is 1.6%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.77 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 2.7%, the inverse of the P/E and a quick read on earnings relative to price.

WMT Valuation & Market Position

With a $910B market cap, Walmart Inc. sits in the mega-cap segment of the market. Relative to its peer group, WMT's quantitative score of 62/100 is roughly in line with the peer average of 68/100.

Quarterly Financial Performance: Walmart Inc.

Revenue for Walmart Inc. came in at $177.75B during Q2 2026, a 6.8% contraction versus the preceding quarter. The company recorded net income of $5.33B, with diluted EPS of $0.67. Quarter-over-quarter revenue has been mixed, typical for a mega-cap company operating in Consumer Defensive. Across the four most recent quarters, WMT averaged $0.71 in diluted EPS.

Walmart Inc.'s Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 6.18 places it in the safe zone, indicating low near-term bankruptcy risk.

Walmart Inc. has beaten Wall Street's EPS estimate in 6 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 3.1% above estimates on average.

Wall Street analysts project Walmart Inc. revenue of about $712.77B for fiscal 2026, with EPS near $2.64. The estimate reflects 14 contributing analysts.

Over the past six months, Walmart Inc. insiders filed 30 SEC Form 4 transactions — 21 sales and 9 purchases. On net that is roughly 7.8M shares disposed (about $537.8M), a signal worth weighing alongside the fundamentals.

WMT Financials

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WMT Latest News

WMT Analyst Consensus

WMT MoonshotScore

Latest Walmart Inc. Analysis

Common Questions About WMT (Consumer Defensive)

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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