From Zacks Investment Research: 2025-02-24 05:08:11

Walmart Inc. saw its shares decline 6.5% following its Q4 fiscal 2025 earnings release, despite growth in top and bottom lines beating expectations. The company’s cautious guidance for fiscal 2026, cost pressures, and macroeconomic uncertainties led to the stock price drop. Walmart anticipates sales growth to slow in fiscal 2026, with a 3-4% increase, down from 5.6% in fiscal 2025. Operating expenses deleveraged in Q4, and currency fluctuations remain a challenge. However, Walmart’s long-term prospects are strong, driven by omnichannel expansion and e-commerce growth. The company’s stock soared 66.3% in the past year, trading at a premium valuation.

While Walmart faces short-term challenges, its long-term strategic positioning remains strong. The company is transitioning to a digital-first, omnichannel powerhouse with a focus on high-margin businesses like advertising and automation. Despite near-term headwinds, Walmart’s adaptability and innovation make it a resilient retail leader. Potential investors may want to wait, while long-term investors should stay invested. Walmart stock carries a Zacks Rank #3 (Hold), with strong long-term growth potential.



Read more at Zacks Investment Research: The Zacks Analyst Blog Highlights Walmart, Kroger, Target and Costco – February 24, 2025