Walmart is in the spotlight as investors eye defensive names amid market turmoil

Walmart (New York:WMT) barely moved in early trading Monday, despite a global selloff that rattled investors. The carnage began in Japan, where the Nikkei 225 index plunged 13.2% in its worst session since the 2011 Fukushima nuclear meltdown. Adding to the concerns The Bank of Japan’s moves toward monetary policy normalization have erased Japan’s global rally this year over the past several sessions. The S&P 500 has fallen 2.5% In early trading, the Nasdaq fell. 3.1%.

UBS analyst Michael Lasser believes that the upcoming earnings report and outlook for buy-rated Walmart (WMT) will stand out relative to other retailers. “We believe WMT’s Q2 results will signal to the market that the constructive case for its stock is still in the early stages of unfolding,” he said. Lasser and his team believe the retail giant has spent years putting the pieces in place, making the right investments, learning from its mistakes, and seizing opportunities. UBS has a higher-than-consensus estimate for Walmart (WMT) of 3.2% U.S. comparable sales growth and $0.65 EPS. The company’s $74 price target for Walmart (WMT) works out to a price-to-earnings ratio of about 25 times its 2026 EPS estimate of $3.00.

Morgan Stanley also issued a positive reading for Walmart (WMT). The company said its survey indicated that Walmart+ has about 21.5 million members, the highest level since 2020. Analyst Simon Gutman noted that “the rebound seems more consistent with the commentary from WMT that Walmart+ membership continues to grow, and that the previous variability in our survey may have been due in part to inherent volatility in responses.”

Walmart (WMT) shares fell. 0.7% In early trading, Walmart (WMT) shares were down to $67.72. Walmart (WMT) is scheduled to report earnings on August 15 (earnings preview). Walmart (WMT) shares are already up 28% year-over-year.