Walmart Earnings Loom: Will Guidance Boost Stock Price?

Walmart (WMT) is set to release its second-quarter earnings for fiscal 2027 on August 20. The retail giant's stock price has been lagging behind its 52-week high of $135.16, prompting investors to hope that the company will raise its full-year guidance and boost the stock's value.

However, analysts warn that expecting a boost in guidance is not a reliable reason to buy Walmart before August 20. The company faced challenges in the first quarter due to higher fuel costs and stress on lower-income consumers, leading to a cautious outlook for Q2.

While it's possible that Walmart may see revenue growth through its advertising business, online shopping, and increased Walmart+ memberships, there is no guarantee of a guidance boost. In fact, if the company bases its guidance solely on the issues of fuel costs and consumer stress, it would be unlikely to raise its outlook.

That being said, Walmart's long-term prospects are promising, with global online sales growing 26% in Q1 2027 and advertising revenue increasing 37%. Additionally, the company is a Dividend King, having increased its dividend payout for over 50 consecutive years. With a long-term investing horizon, Walmart could be worth considering as an investment.