Analyst Explains How Walmart (WMT) is Benefiting From Tariffs

We recently published 10 Most Popular Analyst Calls to Watch This Week. Walmart Inc (NYSE:WMT) is one of the trending stocks.

Dana Telsey from Telsey Advisors said in a latest program on CNBC that Walmart is benefiting from tariffs as people turn to retailers offering lower prices.

“Amazon, the ease with which it is, there’s definitely share to gain and especially what you’re going to see during this holiday season because we all know that these tariffs, price increases are coming steadily, not all at once. So where’s the share going to go? It’s going to off-pricers. It’s going to Walmart Inc (NYSE:WMT). It’s going to Amazon. We have to see what those companies that are enacting change, what can they deliver that’s exciting.”

Cracks have started to appear in the labor market, and analysts believe companies like WMT are set to benefit from sticky inflation and joblessness. WMT’s revenue is growing faster than the sector median, with improving profitability. Net margin has risen from 2.37% in 2021 to 3.08% (TTM). However, the stock trades at a forward P/E of 39.54, which is 2.4x the sector median of 15.89 and 65% above the S&P 500 average of 23.65.