Once upon a time, the idea of a company's market cap ascending to $1 trillion was unheard of. Apple was the first publicly traded company in the U.S. to surpass that lofty benchmark, making the grade in 2018. The ranks have swelled in recent years, with an even dozen companies populating the list (as of this writing). Most of those companies are, unsurprisingly, in the tech sector, but the latest to make the grade bucks that trend.
Walmart (WMT +1.00%) is the latest company to join the $1 trillion club, and the company needs little introduction. It's the world's largest retailer by sales, according to the National Retail Federation.
It has also been an incredible investment. Since Walmart's IPO in 1970, the stock has gained 4,755,356% (as of this writing). Those results aren't part of some distant past, either. Walmart has gained 29% over the past year -- more than double the returns of the S&P 500 -- and the stock is still a buy right now, according to Wall Street.
Image source: Getty Images.
Taking low prices to the next level
Walmart opened its first discount store in 1962, and rivals initially dismissed founder Sam Walton's focus on low prices. Yet the company's results speak for themselves. The discount retail chain now has more than 5,200 locations and has earned its place as an e-commerce powerhouse.
One of the things that sets Walmart apart from its brick-and-mortar competitors is the company's relentless use of technology to achieve its goal of consistently low prices. CFO David Rainey laid out the reasons for its recent move to the Nasdaq index:
Moving to Nasdaq aligns with the people-led, tech-powered approach to our long-term strategy. Walmart is setting a new standard for omnichannel retail by integrating automation and artificial intelligence (AI) to build smarter, faster, and more connected experiences for customers, while enabling our associates to deliver even greater value at scale.
Walmart's recent results help illustrate its ongoing success. In its fiscal 2026 third quarter (ended Oct. 31), Walmart's net sales climbed 5.8% year over year to $177 billion, driving adjusted earnings per share (EPS) up 7% to $0.62. Global e-commerce sales climbed 27% and CEO Doug McMillon said Walmart continues to gain market share. U.S. comps increased 4.8%, as transactions climbed 1.8% and the average ticket rose 2.7%.
Management believes there's more to come. Walmart raised its full-year outlook, guiding for net sales to rise 5% at the midpoint of its guidance, up from its prior forecast of 3.5% growth.
Rainey noted that shoppers are increasingly joining its Walmart+ subscription program, which boasted double-digit growth. Its third-quarter net additions were "the strongest on record," laying the foundation for future growth.
NASDAQ: WMT
Key Data Points
Analysts are bullish on Walmart
Wall Street is known for its diverse opinions, so it's worth noting that the majority of analysts who cover Walmart are bullish. Of the 43 analysts who offered an opinion in February, 93% rate the stock a buy or strong buy, and it has no sell ratings.
Morgan Stanley (MS 4.54%) analyst Simeon Gutman is among the most bullish. He maintains a buy rating on the stock and recently increased his price target to $135. The analyst has also made a bull case of $150, representing potential upside of 17% compared to Tuesday's closing price. He cites the growing Walmart+ membership as providing greater customer insight, which in turn increases sales and profits, strengthening the company's "core value proposition." He goes on the say, "This flywheel has never been stronger."
To be clear, Walmart stock isn't cheap. It's currently trading at 45 times earnings, well above its 5-year average multiple of 35.
That said, Walmart's record speaks for itself. The blue chip stock has gained 482% over the past five years, outperforming both the Nasdaq Composite and the S&P 500, which notched gains of 406% and 259%, respectively (as of this writing).
Given Walmart's impressive track record, its incorporation of the latest technology, and market share gains, it's clear Walmart is worth a look.
