Walmart Inc. (NYSE: WMT), the world’s largest retailer by revenue, continues to dominate headlines as analysts weigh its stock performance against macroeconomic headwinds and strategic pivots. As of February 3, 2025, Walmart shares trade at $97.97, reflecting a 1.7% year-to-date gain and a market capitalization of $787 billion.
Also Read-DeepSeek AI: A Revolutionary Challenger in the AI Landscape and Its Impact on Markets and Technology
Despite a volatile 2024—where shares swung between a 52-week low of $55.04 and a high of $99—the stock remains a focal point for institutional investors and retail traders alike. This article unpacks the latest developments, financial metrics, and expert forecasts shaping Walmart’s trajectory in 2025.
Why Walmart Stock Is a Top Pick for Long-Term Investors.
1. Strong Institutional Confidence Amid Strategic Shifts.
Walmart’s stock has attracted significant attention from hedge funds and asset managers. New Wave Wealth Advisors LLC reduced its stake by 1.1% in Q4 2024 but still holds 315,327 shares worth $28.49 million, making Walmart its largest portfolio position at 11.7%.
Conversely, Concord Asset Management VA increased its holdings by 102.6% during the same period , signaling divergent yet optimistic outlooks.Notably, Geode Capital Management and FMR LLC (Fidelity’s parent company) expanded their positions by 3.3% and 12.9%, respectively, in Q3 2024. These moves highlight institutional faith in Walmart’s hybrid retail model, which combines eCommerce growth (up 17% YoY) with cost-cutting measures in physical stores.
Insider Activity: A Mixed Signal
- Director Robert Edward Moritz purchased 5,446 shares at $91.81/share in November 2024, boosting his holdings by 230%.
- EVP Daniel J. Bartlett sold 1,830 shares in January 2025, trimming his stake by 0.4%.
2. Earnings Momentum and Dividend Resilience.
Walmart’s Q4 2024 earnings report (released November 19, 2024) showcased robust fundamentals:
- Revenue: $169.59B (vs. $167.69B estimate).
- EPS: $0.58 (beat consensus by $0.05).
- Net Margin: 2.92%.
- Return on Equity: 21.78%.
The company’s 1.03% dividend yield—backed by 50 consecutive years of payouts—adds appeal for income-focused investors. With a payout ratio of just 41%, Walmart’s dividend remains sustainable despite macroeconomic uncertainties.
Walmart Stock Forecast 2025: What Analysts Are Saying
Short-Term Price Targets
| Analyst Firm | Rating | Price Target | Upside Potential |
|---|---|---|---|
| Guggenheim | Buy | $100 | +2.1% |
| Wells Fargo | Overweight | $100 | +2.1% |
| Telsey Advisory | Outperform | $100 | +2.1% |
| Consensus Avg. | Moderate Buy | $95.11 | -2.9% |
Source: MarketBeat While the average target suggests modest downside, technical indicators paint a bullish picture:
- 50-Day SMA: $93.07.
- 200-Day SMA: $83.19.
- 14-Day RSI: 53.26 (neutral).
Long-Term Projections: 2025–2027
LongForecast.com predicts Walmart shares could reach $110.41 by December 2025 (+12.7% from current levels) and surge to $185.61 by November 2026—a 89.4% upside 4. Key drivers include:
- Global eCommerce Expansion: Flipkart (India) and PhonePe (digital payments) growing at 25% annually.
- Supply Chain Automation: AI-driven inventory systems reducing costs by $3B/year.
- Healthcare Ventures: Walmart Health clinics targeting $10B in revenue by 2027.
Risks to Consider in 2025
- Valuation Concerns: Walmart’s P/E ratio of 40.20 far exceeds peers like Costco (56.12) and Home Depot (25.20).
- Debt Load: A debt-to-equity ratio of 0.42 could strain liquidity if interest rates rise.
- Consumer Sentiment: 57% of analysts warn a recession could slash same-store sales growth to 1%.
WordPress-Ready Data Table: Walmart Stock Snapshot (February 2025)
| Metric | Value | Source Link |
|---|---|---|
| Current Price | $97.97 | Moneycontrol |
| Market Cap | $787B | MarketBeat |
| Dividend Yield | 1.03% | Nasdaq |
| Q4 Revenue | $169.59B | Walmart IR |
| 2025 EPS Estimate | $2.48 | Yahoo Finance |
Q1: Is Walmart stock a buy in 2025?
Answer: 29 analysts rate WMT as a “Buy” or “Strong Buy,” citing its defensive moat and eCommerce growth. However, its premium valuation warrants caution 13.Q2: What factors could drive Walmart’s stock higher?
Answer: Expansion in high-margin sectors (advertising, healthcare) and international market penetration are critical catalysts 45.Q3: How safe is Walmart’s dividend?
Answer: With a 41% payout ratio and 50-year payout history, Walmart’s dividend is among the safest in retail 57.Q4: What’s the biggest threat to Walmart’s stock price?
Answer: A consumer spending slowdown and failure to monetize digital investments could pressure margins 24.
Conclusion: Balancing Growth and Value
Walmart’s stock sits at a crossroads in 2025. While its omnichannel strategy and dividend pedigree attract long-term investors, rich valuations and macroeconomic risks demand vigilance. As the retail landscape evolves, Walmart’s ability to leverage automation, healthcare, and global eCommerce will determine whether it can reclaim its 2024 highs—or face a reality check. For now, analysts agree: This blue-chip stock remains a cornerstone of defensive portfolios.
