Walmart stock seems fully priced
Wall Street maintains a consensus price target of $110.89 on Walmart (WMT) stock, which is roughly on par with its closing price of $111.13 on June 21. Analysts’ consensus price target indicates that positives are reflected in Walmart stock.
Walmart stock is trading close to its 52-week high. Meanwhile, it has marked substantial gains so far this year on the back of continued growth in comparable sales, improved product mix, digital expansion, and better-than-expected earnings.
While Walmart’s base business is expected to sustain momentum, its high valuation could restrict the upside in the stock. Analysts expect Walmart’s comparable sales to benefit from expanded delivery options, new products, and price investments. Moreover, analysts expect Walmart’s adjusted earnings to return to growth in the coming quarters. However, its low earnings growth rate might not impress investors, especially with a high valuation.
18 out of the 32 analysts covering WMT stock maintain a “buy,” 13 analysts suggest a “hold,” and one analyst has a “sell.” Besides WMT stock, the majority of analysts also recommend a “buy” on Costco (COST) stock owing to its industry-leading comparable sales growth and strong bottom-line performance. Meanwhile, Wall Street has a “neutral” view on Target (TGT) stock.