Walmart Stock Jumps 22% in Six Months: Hold Steady or Take Profits?

Walmart Inc. WMT has kept investor momentum alive, with its stock rallying 21.5% over the past six months. The retail giant’s robust strategies, operational excellence and ability to adapt to shifting consumer dynamics have reinforced confidence in its business model. However, the key debate for investors now is whether Walmart’s strong fundamentals can justify its rich valuation in the months ahead.WMT Stock PerformanceIn the past six months, Walmart has outperformed the broader industry’s rise of 17.7% while surpassing the Zacks Retail – Wholesale sector’s growth of 15.1% and the S&P 500’s increase of 19.8%. The stock’s upward momentum is supported by its leadership in value pricing, omnichannel reach, and market share gains in grocery and health & wellness.The supermarket biggie has outpaced peers such as Kroger KR, Costco COST and Target TGT in the same time frame. While shares of Kroger and Costco have risen 1.7% and 8.3%, respectively, in the past year, Target has tumbled 12.4%.WMT Price Performance vs. Industry, S&P 500 & SectorImage Source: Zacks Investment ResearchClosing the trading session at $102.65 on Thursday, WMT stock stands just 2.5% shy of its 52-week high mark of $105.3 attained on Feb. 14, 2025. The Bentonville, AR-based company also trades above its 50 and 200-day moving averages, signaling strong upward momentum and price stability. The moving average is an important indicator for gauging market trends and momentum. This technical strength indicates positive market sentiment and confidence in the company's financial health and prospects. Let’s delve into Walmart’s growth drivers and explore its prospects as an investment opportunity.WMT Trades Above 50 and 200-Day Moving AveragesImage Source: Zacks Investment ResearchA Close Look at Walmart StockWalmart’s success story extends far beyond shelves and checkout counters. The company has transformed into a diversified growth engine, blending its unmatched scale with innovation, technology and high-margin businesses that position it to flourish in any economic backdrop. For investors seeking a combination of stability, adaptability and consistent market share expansion, Walmart presents a compelling case for long-term investment.In the recently reported second-quarter fiscal 2026 results, Walmart’s total revenues rose 4.8% year over year to $177.4 billion. On a constant-currency basis, revenues grew 5.6%. Comparable sales in Walmart U.S. were up 4.6%, supported by strong growth in grocery, mid-teens expansion in health & wellness, and a rebound in general merchandise categories. Sam’s Club delivered nearly 6% comp growth, while international operations surged 10.5% in constant currency, led by 30% growth in China and steady gains in Mexico and Flipkart.One of the company’s most powerful levers is its digital transformation. Walmart has successfully built one of the fastest-growing e-commerce ecosystems, with momentum across store-fulfilled delivery, marketplace expansion and last-mile capabilities. The integration of its physical store base with digital platforms not only drives customer loyalty but also creates solid efficiencies. In the second quarter of fiscal 2026, WMT’s e-commerce sales jumped 25% globally, with Walmart U.S. up 26%.High-margin businesses are another pillar of Walmart’s investment appeal. Advertising through Walmart Connect is scaling rapidly, both in the United States and internationally, and membership income from Walmart+ and Sam’s Club continues to rise as renewal rates strengthen and premium tiers gain traction. Global diversification adds further strength. Markets such as China, Mexico and India’s Flipkart are fueling double-digit growth and expanding Walmart’s footprint in regions with rising consumer spending power. At the same time, Walmart is contending with rising costs. Wage investments and higher technology spending remain a drag on margins, while liability-related expenses have weighed on profitability. The mix shift into grocery and health & wellness categories, which carry structurally lower margins than general merchandise, has also limited profitability. Apart from this, external pressures related to tariffs and currency fluctuations create uncertainty around Walmart’s ability to protect margins while maintaining its competitive pricing edge.How Is WMT Placed for FY26?As Walmart continues to innovate and expand its offerings, its prospects remain strong, supported by its market leadership and ability to adapt to evolving consumer needs. For fiscal 2026, WMT expects consolidated net sales growth of 3.75-4.75% (at constant currency or cc). Adjusted operating income is expected to increase 3.5-5.5% at cc. Walmart anticipates adjusted earnings per share (EPS) for fiscal 2026 in the $2.52-$2.62 range. The guidance suggests growth from the adjusted EPS of $2.51 recorded in fiscal 2024.Reflecting optimism around WMT’s prospects, analysts have upgraded their earnings estimates for the current and next fiscal quarters over the past 30 days.Image Source: Zacks Investment ResearchWMT’s Valuation Under the SpotlightWalmart is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 36.73, which exceeds the industry average of 32.87. This higher multiple reflects investor confidence in the company’s consistent sales momentum, digital strength and expansion into high-margin businesses. However, it also raises the risk that any slowdown could weigh heavily on the stock, especially considering the cost and margin-related headwinds.Image Source: Zacks Investment ResearchBottom Line for Walmart’s InvestorsWalmart’s scale, adaptability, and growing focus on technology and higher-margin businesses make it a reliable long-term player. Its investments in e-commerce, advertising and memberships are reshaping its growth profile, while international expansion strengthens its global reach. That said, its premium valuation and ongoing economic pressures, including tariff costs and currency swings, suggest some caution in the short run. For investors seeking long-term stability and structural growth, Walmart remains a solid hold, while more value-oriented buyers may prefer to wait for a better entry point. WMT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.See our %%CTA_TEXT%% report – free today!7 Best Stocks for the Next 30 DaysWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Target Corporation (TGT): Free Stock Analysis Report Walmart Inc. (WMT): Free Stock Analysis Report The Kroger Co. (KR): Free Stock Analysis Report Costco Wholesale Corporation (COST): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks