Walmart Stock Down But Wall Street Strategist Sees 49% Upside Potential

Walmart (NASDAQ: WMT) has seen a significant drop in its share value, losing nearly a quarter of its 52-week high. Despite this, one Wall Street strategist believes the stock could be poised for a major rebound. Currently trading at $104.26, Walmart’s average analyst price target stands at $126.78, suggesting a 21.6% upside. However, Tigress Financial’s Chief Investment Strategist Ivan Feinseth has set a much higher target of $155, indicating a potential 48.7% gain.

The recent selloff was triggered by second-quarter earnings, where weak guidance overshadowed strong results. Adjusted EPS of $0.81 beat estimates, and revenue grew 5.9%, but management’s third-quarter EPS forecast fell short of expectations. Three key challenges, extra fuel costs, new drug pricing rules, and Flipkart’s Big Billion Days sale, are weighing on the outlook. Shares are now 22.7% below their 52-week high and trading below the 200-day moving average.

Despite the downturn, Feinseth remains bullish, citing Walmart’s shift toward higher-margin businesses. Global advertising, Walmart Connect, and U.S. marketplace sales have all shown strong growth. E-commerce efficiency, with automated facilities handling over 50% of fulfillment, further supports the positive outlook. Analysts are generally optimistic, with 37 of 43 recommending a Buy or Strong Buy. However, EPS estimates have been slipping, with recent downward revisions.

Walmart’s peer group has fared better, with Target (NYSE: TGT) up 63.92% this year. Walmart’s consensus upside of 21.6% makes it a standout in the sector. While the average target looks achievable, Feinseth’s $155 projection depends on sustained earnings growth and higher valuation multiples. With $25.1 billion left in its buyback authorization, Walmart has tools to support its stock price.