Analysts’ Recommendations for Walmart Stock after Fiscal 2Q18

Majority of analysts remain neutral

Most of the analysts covering Walmart (WMT) stock maintained a neutral outlook despite the company’s strong first-half results. Walmart’s focus on multichannel offerings is driving its top-line growth.

Price investments and strong performance of its digital arm supplement the retail giant’s top-line growth. Also, the company’s innovative offerings, including Scan & Go and automated pickup towers, resonate well with consumers and could help drive sales in the coming quarters.

Analysts’ Recommendations for Walmart Stock after Fiscal 2Q18

However, Walmart’s margins could remain muted due to the increased investment in price and the e-commerce business. Meanwhile, Amazon’s (AMZN) growing market share and the expansion of German discount retailers Aldi and Lidl pose challenges and keep analysts on the sidelines.

Analysts have a consensus score of 2.5 on Walmart stock on a scale of 1.0 to 5.0, where 1.0 signifies a “strong buy” and 5.0 denotes a “strong sell.” Meanwhile, 48% of the 33 analysts covering WMT stock maintained a “hold,” 42% recommended a “buy,” and 9% rated it a “sell.” Walmart stock closed at $79.70 on August 17, reflecting an upside of 3.2% to the analysts’ price target of $82.27.

Peer comparisons

Analysts providing recommendations for Target (TGT) stock maintained a neutral outlook on August 17, 2017. Of the 24 analysts covering TGT stock, 17% rated it as a “buy,” 71% maintained a “hold,” and 12% recommended a “sell” rating.

As for Costco Wholesale (COST), analysts have a positive outlook given the company’s industry-leading sales growth. Of the 29 analysts covering Costco stock, 66% maintained a “buy,” while 34% recommended a “hold.”