Three consecutive quarterly earnings beats offer near-term support, but a forward P/E of 36.4x and PEG of 4.68 leave the shares richly valued relative to growth, while free cash flow at only 30% of net income signals a quality shortfall. With approximately 5.9% remaining to the analyst price target and a risk/reward that barely clears 1-to-1, the setup favors patience over new exposure.
Thesis pillars
- Stretched Valuation Headwind→Stable
- Oversold Uptrend Momentum↑Improving
- Weak Free Cash Conversion→Stable
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Jul 3, 2026, based on the 10-K filed Mar 13, 2026
Walmart Inc. (WMT) Stock Analysis
Recovery setup
Consumer Defensive · Discount Stores
Sell if holding. Engine safety override at $118.77: Quality below floor (3.8 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.2/10. Specifically: Elevated put/call ratio: 1.46; Below-average business quality; Rich valuation.
Walmart Inc. ("Walmart," the "Company" or "we") is a people-led, technology-powered omnichannel retailer dedicated to helping people around the world save money and live better by providing the opportunity to shop in both retail stores and through eCommerce, and to access our... Read more
Sell if holding. Engine safety override at $118.77: Quality below floor (3.8 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.2/10. Specifically: Elevated put/call ratio: 1.46; Below-average business quality; Rich valuation. Chart setup: Death cross but MACD improving, RSI 74. Score 4.2/10, moderate confidence.
Passes 6/10 gates (positive momentum, clean insider activity, no SEC red flags, earnings proximity 21d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio and death cross (50MA < 200MA) and news legal. Suitability: moderate.
Recent developments
updated 2026-10-29Recent Developments — Walmart Inc.
Latest news
- NEWS Target Skids Despite Beat-And-Raise Report. Walmart Earnings Due. - Investor's Business Daily — Investor's Business Daily positive
- NEWS How To Earn $500 A Month From Walmart Stock Ahead Of Q1 Earnings - Benzinga — Benzinga neutral
- NEWS Walmart (WMT) Research Report - StockStory — StockStory neutral
- NEWS Walmart Earnings: The Biggest And Most Influential Retail Report Looms - Investor's Business Daily — Investor's Business Daily positive
- NEWS Walmart stock dubbed a 'valuation concern' ahead of Q2 earnings - TradingView — TradingView negative
Generated 2026-10-29T11:14:36Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
Show full disclosure ▾Hide full disclosure ▴
About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.
Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.
Conflicts and positions. People who build TrendMatrix, or entities they control, may hold positions, long or short, in securities it covers, and may trade them at any time. Positions are not disclosed individually. Verdicts are generated by an automated model applied by the same rules to every covered stock, and are not adjusted for any position held by the people who build TrendMatrix. We do not accept payment from issuers for coverage.
No paid promotion. TrendMatrix does not accept payment from any issuer, broker, or third party in exchange for coverage of any security.
No fiduciary duty. No fiduciary, advisory, or agency relationship is created between you and TrendMatrix by reading our content or subscribing to our service.
Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.
Rating Breakdown
4 floor-breakers
Growth below the gate floor. Component breakdown shows what dragged the score down.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static
Quality below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $118.77: Quality below floor (3.8 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.2/10. Specifically: Elevated put/call ratio: 1.46; Below-average business quality; Rich valuation. Chart setup: Death cross but MACD improving, RSI 74. Prior stop was $113.89. Score 4.2/10, moderate confidence.
Analyst target $117.28 reached (−1.3% from $118.77); no take-profit level is published. Prior stop was $113.89. Stop-loss: $113.89.
Target reached (-1.3% upside); Quality below floor (3.8 < 4.0).
Walmart Inc. trades at a P/E of 43.0 (forward 36.8). TrendMatrix value score: 3.6/10. Verdict: Sell.
48 analysts cover WMT with a consensus score of 4.1/5. Average price target: $127.
What does Walmart Inc. do?Walmart Inc. ("Walmart," the "Company" or "we") is a people-led, technology-powered omnichannel retailer dedicated to...
Walmart Inc. ("Walmart," the "Company" or "we") is a people-led, technology-powered omnichannel retailer dedicated to helping people around the world save money and live better by providing the opportunity to shop in both retail stores and through eCommerce, and to access our other service offerings.