WMT - An Almost Macro-Proof P&L With Accelerating Share Gains In Key Businesses—We Maintain Our Estimates And Stay BUY-Rated With A $137 PT

Research evidence excerpt

WMT - An Almost Macro-Proof P&L With Accelerating Share Gains In Key Businesses—We Maintain Our Estimates And Stay BUY-Rated With A $137 PT

May 22, 2026

John Heinbockel john.heinbockel@guggenheimpartners.com WMT - An Almost Macro-Proof P&L With Accelerating

212 381 4135 Share Gains In Key Businesses—We Maintain Our

Steven Forbes, CFA, CPA

steven.forbes@guggenheimpartners.com Estimates And Stay BUY-Rated With A $137 PT

212 381 4188

Julio Marquez Key Message: The shares’ 700 basis points of underperformance, which we regard julio.marquez@guggenheimpartners.com as overdone, likely reflected a combination of a reserved 1Q print and go-forward 212 823 6605

guidance and price investment comments made by new KR ($67.07, BUY) CEO Greg

Jacob Nivasch Foran, a former WMT US leader. The modest 1Q EBIT shortfall stemmed primarily from

jacob.nivasch@guggenheimpartners.com unmitigated, incremental diesel costs which will be addressed via pricing in upcoming

212 338 8837 quarters while the initial top and bottom-line 2Q outlooks seem conservatively framed.

Max Horowitz Moreover, strength in food volumes, fashion comps, and WMT Connect speak to the

max.horowitz@guggenheimpartners.com health of the ecosystem in a challenging macro backdrop. Though not inexpensive, the

212 518 9974 current 20.5x 2026E Adjusted EBITDA multiple, or 2.3x PEG—see Exhibit 1—represents

a meaningful discount to large-cap peer COST ($1050.45, NEUTRAL). As a result, we

remain BUY-Rated with a $137 price target and expect at least a partial recovery in the

near-term.

WMT BUY

Walmart Inc. An Understandable 1Q EBIT Shortfall. 1Q operating results were mixed, with a significant

Sector: Food Retail top-line beat countered by a modest EBIT shortfall, almost entirely on the back of $175