Shares of Walmart (NYSE:WMT) managed to notch a modest gain in today’s session, bolstered by investors’ inclination towards defensive stocks. Despite looming recession concerns, Wall Street maintains a favorable view of the retail giant. In fact, Evercore ISI singles out Walmart as a top pick for its “Best Core Ideas” list, which spotlights long-term winning stocks that are well-positioned to outshine in the prevailing market conditions.
Greg Melich, an analyst at Evercore ISI, credits Walmart’s compelling value proposition and its role in boosting traffic growth this year as the reasons for its inclusion in the list. Walmart has a competitive edge over rivals, partially attributed to its superior geographic presence in the U.S. Moreover, Walmart’s tech-driven innovations introduced during the pandemic are now beginning to yield returns. These investments are projected to expand further into Walmart’s supply chain, aiding in 3P, advertising, and profitable e-commerce growth. Looking ahead, Evercore ISI anticipates Walmart’s U.S. business margins to stabilize and projects the retail titan to churn out earnings per share of $7 by 2024.
Turning to Wall Street, analysts have a Strong Buy consensus rating on WMT stock based on 25 Buys, four Holds, and zero Sells assigned in the past three months, as indicated by the graphic above. Nevertheless, the average price target of $169.33 per share implies only 6.84% upside potential.
