Walmart stock (WMT) is up 72% in 2024. Over the last two years, the company has picked up steam and become the top retail option in the US. Investors have doubled down their confidence in the stock in 2024, seeing it reach new highs heading into 2025.
What’s so impressive about Walmart’s performance in recent quarters is that it is delivering record results during a time when so many of its peers are struggling. Target; Costco; and more have struggled in 2024, while WMT has rocketed ahead. In the recent quarter, income from Walmart+ grew double digits, something the company has kept up consistently this year.
With investors and Walmart both confident in the stock’s Q4 results, 2025 may be a big year for WMT. For the full fiscal year, which ends Jan. 31, Walmart is guiding for increased sales from 4.8% to 5.1% year-over-year. That updated project exceeds the previous 3,75% to 4.75% previously. Moreover, they project an increase in earnings per share (EPS) to a range of $2.41 and $2.47., and capital expenditures (capex) of 3% to 3.5% of net sales, which would be around $21.9 billion.
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Furthermore, Walmart’s aggressive capex paired with its stock repurchase behavior shows that the company prefers to invest in long-term growth through business improvements. It has put just as much back into the company as it has spent outside, using its profits to bolster its position. WMT has invested in new stores and existing store remodels to improve the customer experience. Additionally, it bought back just $3 billion in stock so far this fiscal year.
Walmart stock is still expected to continue its growth trajectory well into next year. It could be one of the most promising stocks if it continues to overperform on analysis and company expectations.
