Schaeffer's Top Stock Picks for '25

Walmart Stock Extends Underperformance Into June

WMT closed out May with a 16% decrease in price

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Walmart Inc (NYSE:WMT) is a one of the largest retailers in the United States and globally with a market cap of $354 billion. The retailer operates a chain of supercenters, discount department stores, and grocery stores, employing approximately 2.3 million associates worldwide. WMT operates under 46 banners in 24 countries and ecommerce websites, including Sam's Club retail warehouses. WMT closed Thursday at $127.51.

On May 31, Walmart announced plans to hold its Associate Celebration on Friday, June 3. Following the event, the retailer will host a Q&A session with the investment community that will be led by Walmart's President and CEO, Doug McMillon.

Walmart stock has decreased about 9% year-over-year and WMT is currently trading down 20% since reaching up to its all-time high of $160.77 in mid-April. Additionally, shares of WMT have dropped 11% year-to-date and are down 16% over the past month.

Nonetheless, WMT continues to trade at a rich price-earnings ratio of 27.67. Walmart stock also maintains a forward price-earnings of 17.76, which is a relatively high figure considering the business slow growth rate.  

In addition, Walmart stock offers a dividend yield of 1.74% with a forward dividend of $2.24, ultimately making WMT best suited for long-term investors willing to accept minimal appreciation in exchange for low market volatility.

The good news for buyers is, Walmart stock tends to outperform options traders' volatility expectations. This is per the equity's Schaeffer's Volatility Scorecard (SVS), which comes in at 82 (out of 100).

 
 
 

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