Walmart experiences a sixth consecutive day of stock growth.
Walmart, the retail giant, has seen a mixed performance in its Q2 results, with the company beating revenue estimates but missing on EPS. This comes amidst tariff-driven margin pressure that has affected the company's profitability.
According to Seeking Alpha analysts, Walmart was rated A+ for profitability but received a C for growth. Despite this, the company's long-term fundamentals remain intact, thanks to new growth levers like e-commerce, advertising, and international sales that are driving resilience for Walmart.
The tariff-driven margin pressure was evident in Walmart's Q2 results, but strong e-commerce and advertising growth helped mitigate some of the impact. As a result, Walmart shares gained over 5% in the previous six sessions, closing 1.50% higher at $100.93 on Thursday.
However, the stock took a slight dip on Friday, closing at $100.51, marking a 0.42% decrease. In the past one month, Walmart has gained nearly 1%.
Interestingly, while one analyst recommended holding the stock, another had a Strong Sell call for Walmart. Despite this divergence, the Wall Street community has a consensus rating of Strong Buy for Walmart, with 40 out of 42 analysts giving the company a Buy and above rating.
Seeking Alpha author Vinay Utham rated Walmart as Hold, and the current rating for Walmart stock on Seeking Alpha was created by 48 analysts. According to Seeking Alpha's Quant Rating, Walmart has a Hold rating with a score of 3.36 out of 5.
It's worth noting that the S&P500 Index has gained 10% in the year so far, and Walmart shares have advanced over 11.6% in the same period. As Walmart continues to navigate the challenges posed by tariffs and other external factors, its focus on e-commerce, advertising, and international sales could provide a pathway to sustained growth in the future.
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