WMT Stock Heads For Worst Week In 3 Months Despite Earnings Beat — Here’s Why This Analyst Still Sees 10% Upside

• Analyst Georgy Vashchenko cited steady consumer demand, higher store traffic and strong e-commerce growth behind his positive view. 
• He also said Walmart’s unchanged fiscal 2027 outlook reflects confidence in its long-term strategy. 
• Walmart executives said that high fuel expenses created a roughly $175 million burden on operations. 

Walmart (WMT) received a stock upgrade from Freedom Broker, even as the stock heads for its worst week in three months after investors reacted negatively to rising fuel costs, overshadowing stronger-than-expected earnings and continued gains in digital commerce.

Walmart's stock ended Thursday’s trading session 7% lower despite its fiscal first-quarter (Q1) revenue of $177.8 billion, surpassing the Wall Street estimate of $174.84 billion.  

Freedom Broker Sees 10% Upside For WMT 

Following the earnings, Freedom Broker analyst Georgy Vashchenko upgraded the stock to ‘Hold’ from ‘Sell’ while sharply increasing the price target to $133 from $87, according to TheFly.  

The new price target implies nearly a 10% upside potential to the stock’s closing price on Thursday. 

Vashchenko pointed to durable shopping demand, increased store visits, and continued growth in digital sales as reasons for his improved stance. According to Vashchenko, Walmart’s decision to maintain its fiscal 2027 outlook signaled confidence in the company’s long-term strategy. 

Walmart stock edged up 0.5% overnight ahead of Friday. 

Fuel Costs Overshadow WMT’s Strong Sales 

The Bentonville, Arkansas-based company said its U.S. comparable sales increased 4.1%, while customer transactions rose 3%. Global e-commerce revenue jumped 26% during the quarter.

However, company executives said higher fuel costs added about $175 million in expenses to its operations during the quarter. Investors worried that ongoing inflation and shipping costs could hurt profit margins in the months ahead. 

Despite the inflationary concerns and higher logistics expenses, Walmart left its fiscal 2027 guidance, provided first in February, unchanged.

“We said at that time that we believed the first quarter operating income growth would be the lowest of any quarter and profitability would improve thereafter. We still believe that to be the case,” said CFO John Rainey during the Q1 earnings call. 

What Are WMT Retail Traders Saying

On Stocktwits, retail sentiment around the stock remained in ‘extremely bullish’ territory with message volume surging 613% in a 24-hour period. 

A user said, “I bought the dip today just a little. I plan to add if it goes down again the next few days. I liked earnings. Walmart has really been advancing itself and  looks more promising on todays dip.”

Another user wondered, “$WMT how is this down?  Every broke person shops there.”

A third user quipped, “My local Walmart is packed and the stock is down.”

WMT stock has gained nearly 9% year-to-date. 

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