Walmart’s Q2 Results Gets Wall Street Talking, Retail Bulls Stay Strong Despite Brief Selloff

Walmart (WMT) saw multiple price target hikes following its second-quarter results, with brokerage Mizuho noting that the post-earnings selloff in shares is a buying opportunity.

Retail sentiment on Walmart remained unchanged in the ‘extremely bullish’ territory, with message volumes at ‘extremely high’ levels, according to data from Stocktwits.

Mizuho analyst David Bellinger noted that there was nothing thesis-changing in the second-quarter earnings miss as insurance cost true-ups “should not stick around forever.” The retailer’s adjusted earnings per share (EPS) came in at $0.68, compared with Wall Street expectations of $0.74, according to data compiled by Fiscal AI.

Bernstein raised its price target on Walmart to $117 from $113 and maintained an ‘Outperform’ rating, according to TheFly. The brokerage noted that Walmart is on an improved earnings algorithm in the long term.

Walmart CEO Doug McMillon on Thursday said that the company expects costs tied to post-tariff price hikes to increase each week, with it to continue into the second half of the year as well. The retailer’s stock had closed down 4.5% at $97.96 on Thursday. Shares of Walmart were down marginally before the bell.

A user on Stocktwits noted that there was no reason for Walmart stock to be down after five brokerage upgrades.

Truist Securities said that the momentum across the business remains strong and the firm expects more of the same in the second half of the year as consumers continue to seek “value.”

Telsey Advisory Group raised its price target on Walmart to $118 from $115 and maintained its ‘Outperform’ rating. UBS has kept its ‘Buy’ rating on Walmart with a price target of $110.00. 

A bullish user on Stocktwits advised holding on to the stock.

Walmart stock has gained over 8% so far this year and jumped nearly 30% in the last 12 months.

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