Wells Fargo Sees Opportunity at Walmart (WMT) Despite Uneven Sector Backdrop

Walmart Inc. (NASDAQ:WMT) is included among the 14 Best Dividend Growth Stocks to Buy and Hold in 2026.

Wells Fargo Sees Opportunity at Walmart (WMT) Despite Uneven Sector Backdrop

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On December 19, Wells Fargo raised its price target on Walmart Inc. (NASDAQ:WMT) to $130 from $120 and kept an Overweight rating on the shares. The firm described the 2026 outlook for the group as mixed, though still offering opportunity. Wells remains constructive on broadlines and food service, noting that fiscal and tariff-related trade is already underway. It also expects momentum to carry through the first half of EPS revisions. At the same time, the firm sees food retail as more challenging, with company-specific factors likely to matter most.

More than half of Walmart’s revenue comes from groceries. Affordable pricing keeps customers coming back week after week, especially when inflation is running high. That scale shows up both in stores and online. The company sells groceries through its Supercenters, Neighborhood Markets, and Sam’s Club locations. In fiscal 2025, Walmart Inc. (NASDAQ:WMT) generated more than $276 billion in grocery sales. Sam’s Club added another $59 billion during the same period. That combination makes Walmart the largest grocery seller in the US.

The company continues to build its international footprint. Walmart Inc. (NASDAQ:WMT) operates more than 3,000 stores in Mexico and over 400 in Canada. It also owns a majority stake in India’s Flipkart. A potential IPO for Flipkart remains a possibility and could unlock additional value for shareholders. Operating across 19 countries gives Walmart added diversification and multiple growth levers.

Walmart Inc. (NASDAQ:WMT) is a large, tech-enabled omnichannel retailer, selling everything from groceries and electronics to clothing and home goods.

While we acknowledge the potential of WMT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than WMT and that has a 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None.