Most analysts maintain a ‘hold’
Walmart (WMT) is expected to report improved sales and earnings in fiscal 2019. Its top line is expected to improve on the back of expanded pickup services, including the rollout of new pickup towers and the expansion of online grocery pickup services to new stores. Grocery delivery services, the launch of exclusive brands, and investments in price to match Amazon’s (AMZN) offerings are expected to support its sales.
The company’s bottom line is expected to continue its growth momentum and is projected to gain from improved sales, lower taxes, and share repurchases. However, a slowdown in its e-commerce business and continued pressure on margins are keeping analysts on the sidelines.
Of the 34 analysts providing recommendations for Walmart stock, 19 of them are recommending a “hold.” Fifteen analysts are recommending a “buy.” Analysts are maintaining a price target of $105.56 per share for WMT stock, which implies an upside of 22% compared to its closing price of $86.69 on April 6, 2018.
Most analysts have a “hold” rating for Target (TGT) stock since margin headwinds and increased competition could restrain sales and earnings growth. Most analysts have a “buy” rating for Costco (COST) stock due to the company’s impressive sales and earnings growth amid increased competition.