Buy Walmart Stock for Steady Growth as Q4 Earnings Approach?

Walmart WMT will give insight into the current state of consumer shopping behavior, with the omnichannel retailer set to release its Q4 results on Thursday, February 20.Broadly speaking, inflationary pressures have started to ease following several rate cuts in 2024, but Walmart has kept a competitive advantage over Target TGT, which tends to offer premium goods at a higher cost. Furthermore, Walmart’s online expansion has put the company in a better position to compete with e-commerce titan Amazon AMZN. Walmart’s Q4 Expectations Year over year, Walmart’s Q4 sales are thought to have increased 3% to $179.18 billion. On the bottom line, Q4 EPS is expected to be up 6% to $0.64. More intriguing, The Zacks ESP (Expected Surprise Prediction) indicates Walmart could surpass earnings expectations with the most up-to-date analyst revisions (Most Accurate Estimate)  having Q4 EPS pegged at $0.66 and 2% above the Zacks Consensus.Image Source: Zacks Investment Research Notably, Walmart has reached or exceeded earnings expectations for 10 consecutive quarters with an average EPS surprise of 9.25% in its last four quarterly reports.Image Source: Zacks Investment Research Tracking Walmart’s Outlook Wrapping up its current fiscal year 2025, Walmart’s total sales are slated to increase 5% to $678.56 billion versus $648.13 billion in FY24. Based on Zacks estimates, Walmart’s top line is projected to expand another 4% in FY26 to $704.61 billion.Even better, Walmart’s annual earnings are slotted to rise 12% to $2.48 per share, from EPS of $2.22 in FY24. Plus, Zacks projections call for Walmart’s EPS to expand another 11% in FY26 to $2.74.  Image Source: Zacks Investment Research WMT Performance & Valuation Pounding the question of whether it’s time to buy WMT for more upside, Walmart’s stock has already risen over +70% since its 3-1 stock split last February. Over the last year, WMT has impressively outperformed the broader market and Amazon’s +33%, with Target shares down a dismal -13%.Image Source: Zacks Investment Research Trading around $103, Walmart stock is at a 37.9X forward earnings multiple, a noticeable premium to the benchmark S&P 500’s 23X. WMT also trades well above Target’s 13.7X but is near Amazon’s 36.2X.Image Source: Zacks Investment Research Takeaway Ahead of its Q4 report, Walmart’s stock sports a Zacks Rank #2 (Buy). To that point, Walmart’s EPS growth has started to justify its price-to-earnings premium to the broader market, especially with the Zacks ESP suggesting the company could exceed Q4 bottom line expectations.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Walmart Inc. (WMT): Free Stock Analysis Report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Target Corporation (TGT): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks