Walmart Inc. shares declined approximately 1% during Tuesday's trading session, settling at $127.75. This retreat follows a recent surge that propelled the retailer's market valuation beyond the $1 trillion threshold last week.
Analysts Boost Targets Ahead of Earnings
In anticipation of the company's fiscal fourth-quarter report scheduled for February 19, analysts at Wells Fargo and Oppenheimer have increased their price objectives for Walmart to $140. Wells Fargo analyst Edward Kelly maintained an Overweight rating, citing expectations for a solid fourth quarter with U.S. comparable store sales growth exceeding 4.5%.
Oppenheimer's Rupesh Parikh similarly reiterated an Outperform rating, elevating his earnings per share estimate toward the upper end of management's projected range. He noted potential benefits from holiday season strength and modest weather impacts, while cautioning that the company's initial 2026 outlook may fall below current Wall Street consensus estimates.
Key Focus Areas for Investors
Market participants will scrutinize several metrics in the upcoming release, including U.S. comparable sales performance and Walmart's continued market share gains in groceries and general merchandise. Commentary regarding operating income, e-commerce growth, and advertising revenue will also be closely analyzed.
The broader market context includes mixed U.S. equity performance as investors assessed unexpectedly flat December retail sales data. This softer consumer momentum has heightened attention on Walmart's forthcoming guidance, given the company's dual role as both a consumer bellwether and defensive holding during economic uncertainty.
With the stock having rallied significantly, analysts note that the bar for positive surprises is elevated. Any cautious forecast, increased promotional retail environment, or indication of accelerated consumer trade-down behavior could trigger profit-taking, even if quarterly results meet expectations.
