Walmart Shares Rise Following Major US-India Trade Agreement
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
0mins
Should l Buy WMT?
Source: Fool
- Stock Price Surge: Walmart (WMT) shares rose over 4% on Monday, closing at $124.08, reflecting market optimism regarding the US-India trade agreement and investor confidence in the company's growth prospects.
- Trade Agreement Impact: The trade deal between the US and India will reduce tariffs on each other's exports, with Indian Prime Minister Modi pledging to purchase more American goods, creating significant business growth opportunities for retailers like Walmart with substantial exposure to the Indian market.
- Supply Chain Strategy: Walmart has shifted more of its supply chain operations to India in recent years to reduce dependence on China, aiming to source $10 billion worth of goods from India by 2027, demonstrating its adaptability and responsiveness in global supply chain management.
- E-commerce Investment Returns: Walmart holds approximately 80% equity in the Indian e-commerce platform Flipkart, having invested around $16 billion since 2018, and is expected to enhance its competitiveness and profitability in the market as India's economy expands.
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Analyst Views on WMT
Wall Street analysts forecast WMT stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for WMT is 125.75 USD with a low forecast of 119.00 USD and a high forecast of 136.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
26 Analyst Rating
25 Buy
1 Hold
0 Sell
Strong Buy
Current: 126.940
Low
119.00
Averages
125.75
High
136.00
Current: 126.940
Low
119.00
Averages
125.75
High
136.00
About WMT
Walmart Inc. is a technology-powered omnichannel retailer. The Company is engaged in the operation of retail and wholesale stores and clubs, as well as eCommerce Websites and mobile applications, located throughout the United States (U.S.), Africa, Canada, Central America, Chile, China, India and Mexico. It operates in three reportable segments: Walmart U.S., Walmart International and Sam's Club U.S. The Walmart U.S. segment includes the Company's mass merchandising concept in the U.S., as well as eCommerce, which includes omni-channel initiatives and certain other business offerings such as advertising services. The Walmart International segment consists of the Company's operations outside of the U.S. through its subsidiaries, as well as eCommerce and omni-channel initiatives. The Sam's Club U.S. segment includes the warehouse membership clubs in the U.S., as well as samsclub.com and omni-channel initiatives.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Substantial Shareholder Returns: An investment of $16.50 at Walmart's IPO would be worth $786,432 today, illustrating the immense benefits of long-term holding and underscoring the importance of patient investing.
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- Substantial Shareholder Returns: Early investors who purchased Walmart stock at $16.50 during its IPO would now hold shares worth $786,432, illustrating the immense potential of long-term holding.
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- Significant Sales Growth: In Q3 of fiscal 2026, Walmart reported net sales of $177 billion, a 5.8% increase, demonstrating resilience and adaptability in uncertain economic conditions, further solidifying its position as the world's largest retailer.
- Strong E-commerce Performance: Global e-commerce sales surged by 27%, indicating Walmart's successful transformation and market share gains in digital retail, enhancing its competitive edge and driving future growth potential.
- Substantial Shareholder Returns: An investment of $16.50 at Walmart's IPO would be worth $786,432 today, illustrating the immense benefits of long-term holding and underscoring the importance of patient investing.
- Outstanding Market Performance: Over the past decade, Walmart's stock has delivered a 480% return, significantly outperforming the S&P 500's 260%, reflecting not only the company's successful transformation in the retail sector but also the trust it has built among investors.
See More
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- Significant Sales Growth: In Q3 of fiscal 2026, Walmart reported net sales of $177 billion, a 5.8% increase, demonstrating resilience and adaptability in the face of economic uncertainty.
- Strong E-commerce Performance: Global e-commerce sales surged by 27%, indicating Walmart's successful digital transformation and further solidifying its market share, enhancing future growth potential.
- Substantial Shareholder Returns: Early investors who purchased Walmart stock at $16.50 during its IPO would now hold shares worth $786,432, illustrating the immense potential of long-term holding.
- Enhanced Market Competitiveness: Despite experiencing stock price fluctuations exceeding 30%, Walmart has successfully maintained its position as the world's largest retailer through multiple strategic pivots and innovations, showcasing its leadership in the retail sector.
See More
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- Investor Sentiment Shift: Following earnings calls from tech giants like Microsoft, Google, and Amazon, investor confusion about future directions led to Amazon losing over $300 billion in market cap, reflecting strong skepticism regarding its $200 billion AI investment plan.
- Capital Expenditure Comparison: Google announced an increase in capital expenditures to $175 billion to $185 billion, exceeding the expected $115 billion to $120 billion, indicating a proactive approach in AI despite challenges from slowing ad revenues.
- Changing Competitive Landscape: With Alphabet's ongoing investments and successes in AI, YouTube's user base has grown to 750 million, and Waymo's self-driving business is outpacing Tesla, suggesting a strengthening competitive advantage that may attract more investor interest.
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- Enhanced Profitability: Adjusted earnings per share (EPS) surged 68% from $0.74 to $1.24, surpassing the analyst expectation of $0.72, reflecting the company's success in cost control and operational efficiency.
- Market Share Expansion: The e.l.f. brand gained 130 basis points in the mass cosmetics market, with U.S. and international revenues rising 36% and 44% respectively, despite weak consumption in the U.K., showcasing the brand's global appeal.
- Optimistic Outlook: The company raised its fiscal 2026 sales guidance to a growth range of 22% to 33%, expecting Rhode to contribute $260 million to $265 million in revenue, demonstrating confidence in future growth and strategic positioning.
See More
e.l.f. Beauty Reports Strong Q3 Results Exceeding Expectations
- Significant Sales Growth: e.l.f. Beauty's Q3 sales soared 38% year-over-year to $489.5 million, easily surpassing the analyst consensus of $460 million, indicating strong market demand and brand appeal.
- Improved Profitability: Adjusted earnings per share (EPS) surged 68% from $0.74 to $1.24, exceeding the analyst estimate of $0.72, reflecting the company's success in cost control and operational efficiency.
- Rhode Brand Contribution: The Rhode brand contributed $128 million in revenue during the quarter, bolstered by its successful launch at Sephora, further solidifying e.l.f.'s position in the rapidly growing beauty market.
- Optimistic Outlook: e.l.f. raised its fiscal 2026 sales guidance to an increase of 22% to 33%, with Rhode expected to contribute $260 million to $265 million in revenue, demonstrating the company's confidence in future growth and strategic positioning.
See More
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- Consumer Budget Pressure: CEO Ramon Laguarta highlights that despite a strong economy, middle and lower-income consumers are still facing budget constraints, particularly in discretionary categories, prompting the company to strategically adjust product pricing to maintain consumer loyalty.
- Functional Food Innovation: PepsiCo is introducing more functional and high-density foods to meet consumer demands for health and nutrition, particularly with the launch of artificial-free products like the Naked line, aimed at attracting ingredient-sensitive consumers and expanding market share.
- Pricing Adjustment Strategy: The company has conducted a six-month price testing across multiple U.S. markets, aiming to boost sales through moderate price reductions, especially on brands like Doritos, with plans for flexible adjustments based on market feedback to ensure affordability for consumers.
- Brand Investment and Growth: PepsiCo plans to make targeted investments to help consumers afford its products at both the beginning and end of the month, expecting this strategy to drive brand growth and reflect a positive trend in its overall food business, showcasing the company's keen insight into market demands.
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