Buy Walmart Stock on Likely Q4 Earnings Beat and Ongoing Rally
From Nasdaq: 2025-02-18 08:54:00
Walmart Inc. (WMT) is scheduled to report fourth-quarter fiscal 2025 earnings on Feb. 2, 2025, with a Zacks Rank #2 (Buy) and an Earnings ESP of +2.15%. Positive earnings surprises have been reported in the last four quarters, with an average beat of 9.3%.
For first-quarter fiscal 2025, revenue estimates stand at $179.18 billion, up 3.3% year over year, with an EPS of $0.64, a 6.7% increase. The Zacks Consensus Estimate for fiscal 2025 earnings has improved by 0.4% over the last 30 days.
Walmart’s strong omnichannel business, innovative data analytics, and digital expansion efforts have helped drive growth. The company’s strategic investments in e-commerce operations, including partnerships and acquisitions, have positioned it well against competitors like Amazon.com Inc. (AMZN).
Walmart’s return on equity is 21.78%, higher than the industry average, with healthy cash flows supporting shareholder-friendly initiatives. The company repurchased 46 million shares for $3 billion in the first nine months of 2024 and has $13.5 billion remaining under its share buyback plan.
Future catalysts for Walmart include innovations in supply chain, investments in digital platforms like PhonePe, and aggressive expansion in the online grocery space. The company’s focus on enhancing delivery capabilities and strategic partnerships indicate a strong growth trajectory in the e-commerce sector.
Despite a 15.2% stock price appreciation year-to-date, Walmart’s favorable Zacks Rank and potential earnings beat suggest further upside. The company’s initiatives in digital innovation, delivery services, and strategic acquisitions position it for continued success in the competitive retail landscape.
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