Yahoo Finance
Walmartjust handed Wall Street a mixed bag.
Despite rising revenue and profits, shares of the big-box retailer fell more than 9%, following its recent quarterly results.
Soon after,JPMorganadjusted its stock price target for Walmart (WMT).
At the time of writing, WMT stock trades around $104.
Valued at a market cap of $825 billion, Walmart has returned more than 400% to shareholders over the past decade, after adjusting for dividend reinvestments.
The stock's decade-long outperformance has meant it trades at 35x forward earnings, which is steep for a companyprojected to grow earningsat a compounded annual rate of 8.7% over the next five years.
Related: Walmart shoppers must consider one major shift coming to prices By comparison,Walmart's10-year average P/E multiple is much lower at 25x.
JPMorgan lowered its price target on Walmart to $125 from $137, while maintaining its "Overweight" rating on the blue-chip stock.
JPMorgan had already cut its same-store sales estimate for Walmart three weeks before earnings.
When the actual number landed, it came in below the lowered projection.
The analyst described the setup heading into results as a "hairball," a messy tangle of moving pieces that made the stock hard to call.
Walmart's health and wellness business has weighed on revenue and margins in fiscal Q2 of 2027 (ended in July).
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