Walmart Earnings: Undervalued Retail Giant Faces Rising Costs

Walmart (WMT) is heading into its next earnings report with a mixed setup. The retail giant has been pushing into higher-margin areas such as Walmart Connect and expanding e-commerce, but faces cost pressures from inflation and fuel.

The share price has risen 1.7% over the past week but fallen about 12% over 90 days, reflecting this uncertainty. Despite the volatility, Walmart's long-term record is strong, with a 14.4% total shareholder return over one year and a 146.5% return over five years.

Most analysts believe that Walmart is undervalued, with a fair value estimate of $154.58 per share, significantly higher than the current price of $115.20. This puts the stock at a discount of about 25.5% below its average analyst target.