Walmart Stock Upgraded to 'Strong-Buy' Amid Strong Earnings Report

Walmart (NASDAQ: WMT) has seen its stock rating upgraded by Freedom Capital from 'hold' to 'strong-buy'. This upgrade is part of a series of recent changes in ratings and price targets for Walmart stock. Analysts at Wells Fargo & Company, Raymond James Financial, Royal Bank Of Canada, BNP Paribas Exane, and TD Cowen have all maintained or upgraded their ratings for the company.

Walmart's latest earnings report showed a beat on adjusted earnings per share of $0.81 and revenue of $187.94 billion, exceeding consensus estimates of $0.74 and $186.64 billion respectively. The company's global e-commerce sales rose 23%, advertising revenue increased 38%, and global membership revenue grew 17%.

Despite these positives, some analysts have expressed caution due to slower core-store growth and concerns about the health of U.S. retail spending. Walmart has set its Q3 2027 guidance at $0.62-$0.64 EPS and its FY 2027 guidance at $2.800-$2.870 EPS.

The company's stock has been impacted by these factors, with a current market cap of $825.25 billion and a PE ratio of 37.44. However, the upgraded rating from Freedom Capital suggests that some analysts still see significant upside potential for Walmart stock.