The market wasn't so hot on Walmart (WMT 0.06%) stock on Thursday following the company's latest quarterly-earnings release, but sentiment changed the following day. Thanks in no small part to a clutch of positive analyst updates on the company, investors snapped up Walmart again, sending it to a 3% gain on the day. With that performance, it eclipsed the 0.7% increase of the S&P 500 index.
Delayed praise
As a titan in the U.S. retail sector, Walmart is closely tracked by a platoon of stock analysts. More than a few of them weighed in on the company with updates, the bulk of which had quite the bullish tone. Several even raised their price target on the shares.
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One of the raisers was Truist Securities's Scot Ciccarelli, who bumped his fair value assessment on the stock to $111 per share from his preceding $107. He also maintained his buy recommendation. According to reports, the pundit felt that Walmart's opening quarter of its fiscal 2026 was a strong one, especially with its nearly 5% increase in U.S. same-store sales.
He also flagged the company's reiteration of its full-year guidance despite concerns about the effect of tariffs on its fundamentals.
NYSE: WMT
Key Data Points
Thinking about tariffs
Tariffs were the key reason why Walmart's stock slumped in the immediate aftermath of the earnings release.
While I feel that investors are right to be concerned about the almost-certain detrimental effect on company finances, in the long term this company is one of the best buys in the retail sector. Management consistently proves it can grow the business -- as strongly evidenced by that nice lift in same-store sales. Even in a worst-case tariff scenario, it should find a way to thrive.
