NEW YORK, July 18, 2026, 18:11 (EDT)
- U.S. cash markets did not open on Saturday. Shares of Walmart ended Friday at $114.24, a decline of 0.6%.
- Shares rose 0.3% over the week, while the S&P 500 dropped 1.6%.
- Kyle Kinnard is set to succeed Kieran Shanahan as U.S. chief operating officer. Walmart’s shares are trading at 40.1 times earnings.
Walmart Inc. NASDAQ:WMT rose 0.3% last week, even as the S&P 500 slipped 1.6%. The 1.9-point defensive gap remained intact, despite another exit of a senior operations leader.
The difference is significant as Walmart is valued at 40.1 times its trailing earnings. Target Corp. NYSE:TGT has a price-to-earnings ratio of 18.4, while Costco Wholesale Corp. NASDAQ:COST trades at 47.3 times.
Walmart’s valuation multiple is more than double Target’s at 2.2 times, and sits just 15% under Costco’s. Investors are valuing Walmart as more than just a defensive grocery retailer.
They are investing in quicker, higher-margin revenue streams throughout the retail platform. Global advertising climbed 37% in the first quarter, membership-fee revenue increased 17.4%, and e-commerce was up 26%.
Walmart CEO John Furner said the company was “growing higher-margin commerce solutions.” Walmart’s overall gross profit rate increased by six basis points. SEC
| Company or index | July 17 close | Weekly change | Trailing P/E |
|---|---|---|---|
| Walmart NASDAQ:WMT | $114.24 | up 0.3% | 40.1x |
| Target NYSE:TGT | $139.60 | rising 3.3% | 18.4x |
| Costco NASDAQ:COST | $940.87 | gained 2.7% | 47.3x |
| S&P 500 | 7,457.69 | down 1.6% | — |
Weekly changes are based on closing figures from July 17 versus July 10. Price-to-earnings ratios reflect trailing values.
The table displays a mixed result. Walmart outperformed the index by 1.9 percentage points, but trailed both of its retail peers. The company’s valuation premium is driven more by its profit mix than by defensive demand alone.
Friday’s session showed reduced defensive activity. Walmart started trading at $116.96, touched a high of $118.09 and finished at $114.24. Trading volume was 29% higher than the 65-day average.
The broader market declined significantly. The S&P 500 fell 1.0% as weakness among chip stocks led to wider risk aversion, complicating attribution.
Kieran Shanahan will step down as Walmart’s U.S. chief operating officer, with Kyle Kinnard, the international division’s COO, set to succeed him.
Kinnard, who has been with Walmart for over 25 years, formerly oversaw the company’s U.S. health and wellness division. His appointment maintains the leadership transition within Walmart.
The changes go further. In May, two additional top operating executives exited Walmart. Furner also reorganized the leadership teams overseeing the company’s U.S. and international units.
Walmart is reducing prices on summer staples but is keeping its annual targets conservative. The company’s operating test remains straightforward, as investors look to see if increased volume supports margins rather than puts pressure on them.
Walmart projects second-quarter net sales to rise by 4% to 5%, while forecasting adjusted operating income will increase by 7% to 10% in constant currency terms. The company expects adjusted EPS in the range of $0.72 to $0.74.
Over 80 S&P 500 companies are set to announce results next week. Walmart will release its next earnings update on Aug. 20. Broad risk sentiment could steer daily stock movement until then.
Risks: Intensified competition on grocery pricing may pressure margins. Increased fuel expenses reduced first-quarter operating-income growth by 250 basis points. Tariff refunds are still unresolved, and recent management changes heighten execution uncertainty.
Walmart continues to provide investors with protection during times of market volatility. But with a price-to-earnings ratio of 40, this safety net also needs to produce growth.
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