Why Walmart Stock Topped the Market Today

The market wasn't so hot on Walmart (NYSE: WMT) stock on Thursday following the company's latest quarterly-earnings release, but sentiment changed the following day. Thanks in no small part to a clutch of positive analyst updates on the company, investors snapped up Walmart again, sending it to a 3% gain on the day. With that performance, it eclipsed the 0.7% increase of the S&P 500 index.

Delayed praise

As a titan in the U.S. retail sector, Walmart is closely tracked by a platoon of stock analysts. More than a few of them weighed in on the company with updates, the bulk of which had quite the bullish tone. Several even raised their price target on the shares.

Image source: Getty Images.

One of the raisers was Truist Securities's Scot Ciccarelli, who bumped his fair value assessment on the stock to $111 per share from his preceding $107. He also maintained his buy recommendation. According to reports, the pundit felt that Walmart's opening quarter of its fiscal 2026 was a strong one, especially with its nearly 5% increase in U.S. same-store sales.

He also flagged the company's reiteration of its full-year guidance despite concerns about the effect of tariffs on its fundamentals.

Thinking about tariffs

Tariffs were the key reason why Walmart's stock slumped in the immediate aftermath of the earnings release.

While I feel that investors are right to be concerned about the almost-certain detrimental effect on company finances, in the long term this company is one of the best buys in the retail sector. Management consistently proves it can grow the business -- as strongly evidenced by that nice lift in same-store sales. Even in a worst-case tariff scenario, it should find a way to thrive.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Walmart. The Motley Fool has a disclosure policy.