Walmart stock has surged due to growth in revenue and EPS, but high valuation may limit gains

From Nasdaq: 2025-04-05 03:25:00

Walmart’s stock has surged nearly 50% in the past year, outperforming the S&P 500 due to its resilience in the face of economic challenges. The retail giant invested in store renovations, e-commerce, and international expansion to stay ahead. Revenue and EPS have grown steadily, and Walmart remains a Dividend King with 52 years of annual payout increases. The company serves millions of customers globally and is expanding its Walmart+ subscription service to compete with Amazon Prime. Analysts expect Walmart’s stock to rise over the next year, but its high valuation may limit gains.

In fiscal 2025, Walmart’s sales and EPS grew, and the company expects continued growth in 2026 despite temporary headwinds. Walmart is prepared to manage potential tariffs on its overseas goods, leveraging its scale and strategies to mitigate costs. Analysts project solid EPS growth for Walmart in the coming years, but the stock’s current high valuation may impact future returns. While Walmart remains a strong long-term investment, investors should consider waiting for a potential pullback before buying.

The Motley Fool’s Stock Advisor team recommends 10 stocks for investors, but Walmart is not among them. The service has a history of identifying high-performing stocks, like Nvidia in 2005, which saw significant returns. Stock Advisor offers guidance on building a successful portfolio and regularly updates investors with new stock picks. While Walmart is a reliable investment, investors may want to explore other opportunities for potentially higher returns in the future.



Read more at Nasdaq: Where Will Walmart Stock Be in 1 Year?