Three consecutive quarterly earnings beats offer near-term support, but a forward P/E of 36.4x and PEG of 4.68 leave the shares richly valued relative to growth, while free cash flow at only 30% of net income signals a quality shortfall. With approximately 5.9% remaining to the analyst price target and a risk/reward that barely clears 1-to-1, the setup favors patience over new exposure.
Thesis pillars
- Stretched Valuation Headwind→Stable
- Oversold Uptrend Momentum↑Improving
- Weak Free Cash Conversion→Stable
- +1 more pillar — see the Why tab for full reasoning
Walmart Inc. (WMT) Stock Analysis
Range Bound setup
Consumer Defensive · Discount Stores
Sell if holding. Momentum 4.4/10 is below the 5.0 floor at $110.62 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Value-trap signals (2/5): Margin compression (op margin 4.2%), Material insider selling (25 sells, 0.12% of cap).
Walmart Inc. ("Walmart," the "Company" or "we") is a people-led, technology-powered omnichannel retailer dedicated to helping people around the world save money and live better by providing the opportunity to shop in both retail stores and through eCommerce, and to access our... Read more
Sell if holding. Momentum 4.4/10 is below the 5.0 floor at $110.62 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Value-trap signals (2/5): Margin compression (op margin 4.2%), Material insider selling (25 sells, 0.12% of cap). Chart setup: RSI 42 mid-range, Bollinger mid-band. Score 5.0/10, moderate confidence.
Passes 7/8 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity 17d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum. Suitability: moderate.
Recent developments
updated 2026-08-04Recent Developments — Walmart Inc.
Latest news
- NEWS Target Skids Despite Beat-And-Raise Report. Walmart Earnings Due. - Investor's Business Daily — Investor's Business Daily positive
- NEWS How To Earn $500 A Month From Walmart Stock Ahead Of Q1 Earnings - Benzinga — Benzinga neutral
- NEWS Walmart (WMT) Research Report - StockStory — StockStory neutral
- NEWS Ahead of Walmart Earnings, Here Is What Barchart Options Data Shows for WMT Stock - Barchart.com — Barchart.com neutral
- NEWS WMT Stock Quote Price and Forecast - CNN — CNN neutral
Generated 2026-08-04T07:03:28Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
10 dimensions · all in-band
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Momentum 4.4/10 is below the 5.0 floor at $110.62 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Value-trap signals (2/5): Margin compression (op margin 4.2%), Material insider selling (25 sells, 0.12% of cap). Chart setup: RSI 42 mid-range, Bollinger mid-band. Prior stop was $105.13. Score 5.0/10, moderate confidence.
Take-profit target: $126.98 (+14.7% upside). Prior stop was $105.13. Stop-loss: $105.13.
Value-trap signals (2/5): Margin compression (op margin 4.2%), Material insider selling (25 sells, 0.12% of cap).
Walmart Inc. trades at a P/E of 39.2 (forward 33.9). TrendMatrix value score: 4.1/10. Verdict: Sell.
48 analysts cover WMT with a consensus score of 4.2/5. Average price target: $138.
What does Walmart Inc. do?Walmart Inc. ("Walmart," the "Company" or "we") is a people-led, technology-powered omnichannel retailer dedicated to...
Walmart Inc. ("Walmart," the "Company" or "we") is a people-led, technology-powered omnichannel retailer dedicated to helping people around the world save money and live better by providing the opportunity to shop in both retail stores and through eCommerce, and to access our other service offerings.