There's a growing number of companies that have reached trillion-dollar valuations in recent years. One stock that's nearing that milestone is retail giant Walmart (WMT +0.97%), whose market cap recently totaled around $900 billion.
For the company to reach a $1 trillion valuation, it would need to rise by a relatively modest 11% from where it is today. It seems like it might be a forgone conclusion that it'll get there. But investors shouldn't overlook the fact that the stock has already achieved significant gains in recent years, rising by more than 130% in just three years. Plus, its shares trade at a remarkably high earnings multiple.
Can Walmart's impressive rally continue in 2026, and can the company join the trillion-dollar club later this year?
Image source: Getty Images.
Why Walmart may continue to be a go-to investment in 2026
Entering 2026, investors and consumers likely have serious question marks about how the U.S. economy will do this year. Tariffs, inflation, and global trade remain big concerns.
But while many businesses may struggle in light of troubling macroeconomic conditions, one that may continue to prove to be resilient is Walmart. Over the past three years, the company has demonstrated consistently strong single-digit growth, and that's a trend that could very well continue in 2026.
WMT Revenue (Quarterly YoY Growth) data by YCharts
The retail company's strength and overall resiliency are what could enable Walmart's valuation to continue rising higher this year, as it can appear to be a good safe-haven investment to hold amid economic adversity.
Is Walmart's stock too expensive?
While there's no denying Walmart's business is strong and that it's an industry leader, investors may begin to balk at its rising price. That's because, as the retail stock has taken off, it has also become much more expensive to own. Recently, it was trading at a price-to-earnings (P/E) multiple of nearly 40.
WMT PE Ratio data by YCharts
Over the past decade, the stock has normally traded at more modest levels, averaging a P/E multiple closer to 30 than 40. While there have been periods where it rose higher to more than 40, it normally came down afterward. That hasn't happened -- yet.
However, as investors become more concerned about the overall stock market and rising valuations, there could be some hesitancy to invest in Walmart, and some investors may even opt to sell sooner rather than later. A high valuation may be justifiable for a fast-growing stock, but for a company growing in single digits, it's an extremely steep premium to be paying.
While Walmart's stock has performed well in recent years, that may not prove to be the case in 2026.
NASDAQ: WMT
Key Data Points
Will Walmart reach a $1 trillion valuation in 2026?
Ultimately, I wouldn't be surprised to see Walmart reach $1 trillion in market cap at some point this year, simply because the market still appears to be strong, and Walmart's stock doesn't need to become massively more expensive to get there.
The bigger question, however, is whether it can stay there, particularly if market conditions sour and high-priced stocks come under pressure. If that happens, the stock could end up falling sharply, perhaps even below its current market cap.
If you're a long-term investor, however, the good news is that Walmart is still a good investment for the long haul. It's a leading company in retail that's getting bigger in advertising, and it's growing its online marketplace as well. Walmart is a solid blue chip stock worth buying and holding for years, even if it may encounter some challenges along the way.
