While certainly, retail giant Walmart (WMT) has been a winner in its own right on several fronts, the idea that Walmart could not only beat, but trounce, rival Amazon (AMZN) might seem like a bridge too far. A Fox Business report, however, suggest that is just what we are looking at, and Walmart shares gained fractionally in the closing minutes of Monday’s trading as a result.
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Fox Business spoke to Keith Fitz, who advanced the notion that, somehow, Walmart stock would “radically outperform” Amazon stock in 2025. That might sound like the kind of thing that would leave you spraying coffee at your monitor, but Fitz had a surprising rationale for such an assertion.
Fitz noted that this was likely the year that we would see “a renewed customer confidence” in the Walmart brand, which in turn would mean surging sales and profits accordingly. Amazon, in turn, is the “weaker play” here by Fitz’s reckoning, as Walmart has been making inroads on Amazon’s online business for some time now, and that in turn would give Walmart an extra advantage.
And Then The Recall Hit
Fitz, however, may have missed some news recently, after Walmart locations in 20 states issued a recall notice over contaminated grocery items. Word from The Street revealed that the Walmart locations released the recall notice over pre-sliced cucumbers, which apparently may have been contaminated with salmonella.
This is only just the most recent such alert; a “voluntary precautionary advisory” emerged not long ago over Braga Fresh broccoli florets, the report noted, over potential Listeria contamination. Walmart, for its part, noted that there were “…no reported illnesses associated with this advisory,” and further noted that it was “…working with the supplier to investigate.”
Is Walmart Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Strong Buy consensus rating on WMT stock based on 26 Buys and two Holds assigned in the past three months, as indicated by the graphic below. After a 75.23% rally in its share price over the past year, the average WMT price target of $97.34 per share implies 6.57% upside potential.
