Buy, Sell, or Hold Walmart Stock After Q1 Earnings?

From Nasdaq: 2025-05-15 19:44:00

Walmart reported Q1 results, exceeding expectations but warning of price increases due to tariffs. Market rebounded +0.41%, but WMT fell 0.5%. Walmart stock is up 7% this year and nearly 100% in 3 years, making it a topic of interest for investors.

Q1 sales for Walmart were up 2% to $165.6 billion, with international sales up 8% and global e-commerce growing by 22%. Q1 EPS was $0.61, beating expectations by 7%. Walmart has consistently exceeded earnings expectations for the past 11 quarters.

Walmart expects Q2 sales to increase by 3.5%-4.5% and maintained full-year forecasts for sales growth of 3%-4% and adjusted EPS of $2.50-$2.60. Walmart CFO David Rainey noted the company tends to gain market share during economic uncertainty.

Walmart stock is trading at a P/E premium compared to peers and the S&P 500. At 37.3X forward earnings, it’s above Target’s 10.6X. Despite the premium, Walmart’s price-to-sales ratio is less than 2X, making it a consideration for investors.

Following Q1 results, Walmart stock is rated a Zacks Rank #3 (Hold) and remains a viable long-term investment. Analysts will monitor earnings estimate revisions to assess the impact of higher prices on Walmart’s outlook. Considerations for buying, selling, or holding Walmart stock remain relevant.



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