Is Walmart Stock Underperforming the Nasdaq?

With a market cap of $820.4 billion, Walmart Inc. (WMT) is a global retailer that operates through three main segments: Walmart U.S., Walmart International, and Sam’s Club. The company runs retail and wholesale stores, eCommerce platforms, and digital payment services, offering a broad assortment of merchandise, groceries, health and wellness products, and financial solutions. 

Companies valued at more than $200 billion are generally considered “mega-cap” stocks, and Walmart fits this criterion perfectly. Guided by its everyday low price (EDLP) philosophy and omni-channel strategy, Walmart helps customers save money and live better by seamlessly integrating in-store and online shopping experiences.

Shares of the Bentonville, Arkansas-based company have decreased 23.7% from its 52-week high of $135.15. Over the past three months, its shares have fallen 13.3%, lagging behind the broader Nasdaq Composite’s ($NASX) 1.9% dip during the same period.

WMT stock is down 7.5% on a YTD basis, underperforming NASX’s 13.6% return. Longer term, shares of the retail giant have risen 7.3% over the past 52 weeks, compared to NASX's 21.6% surge over the same time frame.

Despite recent fluctuations, the stock has been trading below its 50-day moving average since late May.

Shares of Walmart tumbled 9.2% after the company reported Q2 2027 results on Aug. 20, as comparable sales grew just 2.6%, well below the analyst estimate, and store-traffic growth slowed to 1.5% and average spending per transaction rose only 1.1%. Investors were also concerned about mounting consumer pressure from elevated gasoline prices, with Walmart expecting an additional $2 billion in fuel costs, and aggressive price rollbacks on 11,000 products relying partly on a one-time $2.9 billion tariff refund. 

The selloff intensified after Walmart guided Q3 adjusted EPS to $0.62 - $0.64, below the consensus, despite raising fiscal 2027 net-sales growth guidance to 4% - 5%.

In comparison, WMT stock has underperformed its rival, Costco Wholesale Corporation (COST) on a YTD basis, with COST shares increasing 9.6%. However, over the past 52 weeks, COST stock has risen marginally, trailing WMT stock’s performance.

Despite WMT’s underperformance relative to the Nasdaq over the past year, analysts remain bullish about its prospects. The stock has a consensus rating of “Strong Buy” from 39 analysts in coverage, and the mean price target of $128.71 is a premium of 24.9% to current levels.