Walmart Inc (NYSE:WMT, XETRA:WMT) is positioned to extend market share gains amid a price-sensitive consumer environment, according to Bank of America analysts following the company’s latest earnings report, with the firm reiterating a ‘Buy’ rating and pointing to expectations…
r a renewed beat-and-raise cycle. The analysts said the current backdrop favors Walmart’s value proposition, particularly as consumers continue to prioritize lower prices
They expect share gains to accelerate provided freight conditions remain stable, supporting continued upside to sales momentum. Walmart recently raised its full-year net sales guidance to the high end of its 3.5% to 4.5% constant-currency range, reflecting a first-quarter beat and expectations for 4% to 5% growth in the second quarter. The bank’s analysts noted Walmart’s ongoing “rollback” pricing strategy, which increased roughly 20% year over year in the first quarter, as a key driver of competitive pricing gaps.
Bank of America expects those gaps to remain in place or widen, rather than narrow, supporting continued traffic gains. The analysts also expect second quarter like-for-like inflation trends to remain broadly consistent with the first quarter, with shifts in category-level pricing dynamics as tariff-related comparisons ease and food inflation trends adjust. On costs, Walmart reiterated its full-year operating profit growth outlook of 6% to 8% in constant currency, despite roughly $1 billion in incremental freight-related costs tied to higher fuel prices, assuming current levels persist.