From Nasdaq: 2025-02-23 05:25:00

Walmart’s shares slipped after issuing a cautious 2025 outlook, but the stock is still up 65% over the past year. The retail giant saw solid sales growth in the fourth quarter, with revenue up 4.1% to $180.6 billion and adjusted EPS up 10% to $0.66. E-commerce sales soared 20%, and Walmart+ memberships grew by double digits. Despite the dip, Walmart continues to see strong growth in its various business segments, with grocery, health, and wellness leading the way. The company’s outlook for fiscal 2026 includes revenue growth of 3% to 4% and adjusted EPS of $2.50 to $2.60.

While Walmart’s full-year guidance may have disappointed investors, the company’s story remains intact. Upper-income households are driving growth, and Walmart is capitalizing on e-commerce and advertising opportunities. However, with a forward P/E ratio of about 35 times, the stock’s valuation is high. It may be better to hold onto shares rather than add new positions at this time. Walmart’s consistent growth and strong performance in various segments make it a solid long-term investment, despite the current valuation concerns.



Read more at Nasdaq: Walmart Shares Sink on Soft Sales Forecast. Is It Time to Buy the Stock on the Dip?