Second-quarter results from major retailers will continue to shine in this week’s earnings spotlight with Walmart WMT
set to release its Q2 report on Thursday, August 15.
A top-notch performer in Zacks Retail-Supermarkets Industry, Walmart’s stock proudly carries a Zacks Rank #2 (Buy), beckoning investors at this opportune moment.
Anticipated Q2 Performance
Estimates suggest a 4% surge in Walmart’s Q2 sales to reach $168.5 billion. Earnings per share are projected to rise by 6% to $0.65 from $0.61 in the previous year’s quarter.
The upswing can be credited to increased sales volumes and market share expansions, especially in general merchandise – exemplified by Walmart surpassing sales projections for 17 consecutive quarters and surpassing earnings forecasts in three of the last four reports, with an average EPS surprise of 8.34%.
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Comparative Growth
Walmart’s iconic rollback prices continue to beckon customers in what remains a rising inflationary climate, positioning the company ahead of counterparts like Target TGT
and Kroger KR.
This price leadership is mirrored in Walmart’s impressive stock surge of almost +30% year to date, eclipsing Kroger’s +12% and Target’s -5%.
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Promising Growth Trajectory
Walmart’s total sales are forecasted to climb by 4% in fiscal year 2025 and are expected to see another 3% boost in FY26, hitting $700.3 billion. Furthermore, annual earnings are set to spike by 9% in FY25 and are projected to leap by another 10% in FY26 to reach $2.67 per share.
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In Conclusion
Walmart’s stamp of authority in the supermarket realm has solidified in recent times, propelling the rally in WMT that could sustain given the projected robust growth in Q2. Noteworthy too is the Average Zacks Price Target of $73.74, indicating a potential 7% upside in Walmart’s stock.
The Wildcard: Unlocking Hydrogen Energy Potential?
As gossip swirls about the juggernaut Walmart’s domination in the market, whispers of a different nature persist. The mysterious allure of clean hydrogen energy is on the horizon at a time when Walmart’s star is ascendant. Could these developments be parallel paths towards success or diverging narratives in the making? Investors beware, for the game may be afoot.