Quick Read – Walmart (WMT) trades at a trailing P/E of 48 and price-to-free-cash-flow of 70 driven by advertising revenue growth of 37% to $6.4B and 24% eCommerce growth, while Q4 net income fell 19.36% year-over-year to $4.24B and net profit margin sits at just 3.07%.
Kroger (KR) trades at a forward P/E of 13, offers a 2.06% dividend yield with a $2B buyback authorized, and its Our Brands private label portfolio expanded gross margin to 23.1% while guiding FY26 adjusted EPS of $5.10 to $5.30. – Walmart’s valuation has detached from grocery fundamentals and now reflects advertising and eCommerce growth priced at levels richer than the S&P 500 and NVIDIA, while Kroger’s private label margin expansion and eCommerce path to profitability in 2026 remain undervalued. – The analyst who called NVIDIA in 2010 just named his top 10 stocks and Kroger wasn’t one of them
Get them here FREE. Walmart (NYSE:WMT) is the grocery story everyone wants to own right now, with a $1.047 trillion market cap and a stock that has climbed 34.53% over the past year. But here’s what you should actually be watching.
The Walmart Trade Has Gotten Ahead of the Story The pitch you keep hearing is that Walmart is winning groceries. Fine. The problem is that the multiple you are paying has almost nothing to do with the groceries.