Walmart WMT is set to report its Q2 2025 earnings on Aug. 15, before the market opens.
Wall Street analysts expect the retailer to post an EPS of $0.59, down from $0.61 in the year-ago period. According to data from Benzinga Pro, quarterly revenue is expected to be $155.04 billion, down from $161.63 billion in the year-ago period.
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If You Bought Walmart Stock 20 Years Ago
The company's stock traded around $12 per share 20 years ago. If you had invested $1,000, you could have bought approximately 82 shares of Walmart stock. Currently, shares are trading at $71.02, which means your investment's value could have soared to $5,826 because of stock price appreciation. But wait, the company also paid dividends during these 20 years.
Walmart’s dividend yield is currently 1.53%. Over the last twenty years, it paid around $30 in dividends per share, which means you could have made $2,625 from dividends alone.
Summing up $5,826 and $2,625, we end up with the final value of your investment, which is $8,451. This is how much you could have made if you had invested $1,000 in Walmart stock 20 years ago. This means a total return of 745.1%. In comparison, S&P 500 total return for the same period is 567.57%.
What Could The Next 20 Years Bring?
Walmart has a consensus rating of Buy and a price target of $95.63 based on the ratings of 32 analysts. The price target implies a nearly 35% potential upside from the current stock price.
Earlier this week, according to our Benzinga Pro report, two analysts raised their price targets on Walmart. KeyBanc increased its target to $82 from $75, reiterating its Overweight rating, while Evercore ISI raised the target to $74 from $73, maintaining its Outperform rating.
On May 16, Walmart announced its Q1 2025 earnings results, which showed strong revenue and operating income growth. Consolidated revenue was $161.5 billion, up 6.0%, and better than the consensus estimate of $148.86 billion. Quarterly EPS was $0.60, beating the expected $0.49.
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Looking ahead, Walmart issued guidance for Q2, expecting net sales to increase 3.5% to 4.5% and operating income to grow 3.0% to 4.5%. It now expects to be at the high end or slightly above its previous guidance for net sales growth of 3.0% to 4.0% and operating income growth of 4.0% to 6.0% for fiscal 2025.
"Our team delivered a great quarter. Around the world, our goal is simple – we're focused on saving our customers both money and time," said Doug McMillon, President and CEO of Walmart.
In summary, income-focused investors may find Walmart stock attractive, given the historical stock price appreciation and expected upside potential. Furthermore, they can benefit from the company's consistent dividend hikes. Walmart has raised its dividend consecutively for the last 29 years.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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