Is Walmart Stock Underperforming the Nasdaq?

Walmart Inc. (WMT), a global retail giant with a market cap of $820.4 billion, operates through three segments: Walmart U.S., Walmart International, and Sam s Club. The company offers merchandise, groceries, health and wellness products, and financial solutions through retail, wholesale, eCommerce platforms, and digital payment services. Walmart's EDLP philosophy and omni-channel strategy allow customers to save money and live better by combining in-store and online shopping experiences.

Despite a 23.7% decrease from its 52-week high of $135.15, WMT shares have fallen 13.3% over the past three months, trailing the Nasdaq Composite's 1.9% dip during the same period. The retail giant's stock has underperformed the broader Nasdaq by 7.5% year-to-date (YTD), while the Nasdaq has risen 13.6%. Over the past 52 weeks, Walmart's stock has risen 7.3%, compared to the Nasdaq's 21.6% surge.

In Q2 2027, Walmart reported comparable sales growth at 2.6%, below analyst estimates, while store-traffic growth slowed to 1.5% and average spending per transaction increased by only 1.1%. Investors were concerned about mounting consumer pressure from heightened gasoline prices, with Walmart expecting an additional $2 billion in fuel costs, and aggressive price rollbacks on 11,000 products due to a $2.9 billion tariff refund. Following the disappointing earnings report, WMT stock tumbled 9.2%.

Although WMT has underperformed the Nasdaq on a YTD basis, 39 out of 39 analysts covering the stock maintain a "Strong Buy" rating, with a mean price target of $128.71, representing a 24.9% premium to current levels.