Walmart Q2 Preview: Analysts Expect Strong Report As Retailer’s Scale, Staples Stronghold Likely Offset Macro Pressures

Analysts and retail investors broadly expect smooth sailing for Walmart, ahead of its quarterly results early Thursday morning, even as they expect to dig into the company's comments on the consumer economy amid mixed signals.

The scale of the world's largest retailer by sales, its dominant position in staples like groceries, and pricing power are helping it offset weak consumer spending and tariff-related pressures.

In a recent note, Bank of America, which maintained its 'Buy' rating on the chain's shares, stated that it expects strong comparable sales growth and continued margin expansion. Last week, several analysts, including Guggenheim and Evercore ISI, raised their price targets on the stock, based on similar views.

Analysts expect Walmart to report a nearly 4% rise in second-quarter revenue, and over 10% growth in adjusted earnings per share (EPS), according to estimates from Koyfin. Walmart has surpassed earnings estimates in the last 11 quarters, according to Reuters/LSEG.

On Stocktwits, the retail sentiment for the company shifted to 'extremely bullish' as of early Thursday, from 'bullish' the previous day. The stock ranked among the top five trending tickers on Stocktwits, with users viewing it as a key defensive stock in the volatile market.

Smaller peer Target reported Wednesday quarterly same-store sales and revenue that beat expectations. At the same time, home improvement retailer Home Depot missed estimates for quarterly revenue and profit but kept its annual forecasts intact.

Walmart's stock is up 13.5% year-to-date, compared to the nearly 6% growth in the Consumer Staples Select Sector SPDR Fund (XLP).

In May, the company posted an unexpected annual increase in first-quarter earnings and maintained its full-year outlook. CEO Doug McMillon warned at the time that the company would have to raise prices due to the tariffs.

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