Ratings summary and target price
The majority of analysts providing recommendations for Wal-Mart Stores (WMT) stock have maintained a neutral stance. Walmart’s investments in accelerating sales growth appear to be paying off.
The company’s continued price investments, store remodeling, and focus on e-commerce have all helped it to generate improved comps growth amid increased competition from Amazon.com (AMZN) and other deep discount chains. However, the soft retail environment, higher competition, increased investments, and low pricing are likely to hurt WMT’s margins and keep analysts on the sidelines.
Last month, Goldman Sachs upgraded Walmart stock to a “buy” from “neutral.” Analyst Matthew Fassler stated that Walmart’s scale, strong foothold in small markets (mainly in rural areas), and significant investments into its digital arm have all positioned it well to accelerate healthy top-line growth, despite the growing threat from Amazon.
Analysts, on average, have rated Walmart stock a 2.5 on a scale of 1.0 (or “strong buy”) to 5.0 (or “strong sell”). Meanwhile, of the 33 analysts covering the stock, 39% recommend a “buy,” while 59% maintain a “hold” rating, and 9% rate it as a “sell.”
On August 10, 2017, Walmart stock was trading about 1% below the analysts’ target price of $81.41.
Analysts covering Target (TGT) stock have maintained a neutral outlook as of August 10, 2017. Of the 25 analysts providing recommendation for TGT stock, 12% rate it as a “buy,” while 68% recommend a “hold,” and 20% have maintained a “sell” rating.
For Costco Wholesale (COST), 66% of the 29 analysts have recommended a “buy,” while 34% have rated it a “hold.” Costco’s strong comparable same-store growth and higher savings are projected to drive balanced top- and bottom-line growth, which has made analysts positive about COST stock.