What Do Analysts Recommend for Walmart Stock?
Ratings and target price
Most analysts covering Walmart (WMT) still have a “neutral” stance on the stock. Analysts think that Walmart’s margins will likely be impacted by the company’s continued price investments to remain competitive. However, this could change in coming quarters given the company’s scale, strong performance amid challenges, growing digital business, and ability to drive store traffic.
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On average, analysts have rated Walmart stock as a 2.6 on a scale where one represents a “strong buy,” and five denotes a “strong sell.” Meanwhile, of the 32 analysts covering the stock as of July 14, 2017, 38.0% recommended a “buy,” 53.0% recommended a “hold,” and 9.0% maintained a “sell” rating. Currently, analysts maintain a 12-month target price of $80.59 per share on Walmart stock, which reflects 5.6% upside to its closing price of $76.34 on July 14.
Walmart’s investments to create an omnichannel presence are paying off. The company’s acquisitions on the digital front, store remodeling, and lower pricing result in higher sales. The company’s strong cash position allows it to continue to invest in the price and fortify its digital business. All of these factors differentiate Walmart from other retailers and position it well to defend its market share amid the growing threat from Amazon (AMZN).
Of the 25 analysts covering Target (TGT) stock, 12.0% recommended a “buy,” 68.0% maintained a “hold,” and 20.0% recommended a “sell.” As for Costco (COST), 66% of the 29 analysts covering the stock recommended a “buy” and 34.0% maintained a “hold” rating.