"Walmart stock is trading at an all-time high, but history suggests that alone does not mean the rally is finished. In prior cycles, the shares have shown an ability to break out and sustain momentum well beyond initial peaks. Notably, during 2017 and again in 2020, Walmart delivered gains of more than 25% over relatively short periods as investors reassessed the company's earnings power and long-term growth profile."
"Walmart finds itself at a similar crossroads. The business is no longer being valued solely as a defensive retailer. Instead, investors are increasingly focused on margin expansion, monetization of its massive customer ecosystem, and renewed growth opportunities outside the U.S. If these factors continue to materialize, the stock's current highs could prove to be a base rather than a ceiling."
Walmart reached all-time-high stock levels while historic cycles show the shares can extend rallies well beyond initial peaks. Investors now emphasize margin expansion, monetization of a large customer ecosystem, and renewed international growth instead of viewing the company solely as defensive. Key catalysts include an e-commerce profitability inflection, the unlocking of high-margin ancillary revenues like advertising and data monetization, and re-acceleration of international expansion. Evidence includes global e-commerce profitability in Q1 FY2026 and a 22% e-commerce sales increase that materially contributed to earnings, with potential valuation re-rating by mid-2026 and throughout 2026.
Read at Forbes
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