Dorothy

It did lower its price target to $125 from $137, though that still suggests nearly 21% upside from Thursday's close. "We are buyers – we view wash out as done as bears got their price and trends should improve while alternate profit pools accelerated," analyst Christopher Horvers said Friday in a note to clients. "Looking ahead, the short case feels greedy to us and is largely based on relative valuation (vs. being long dollar stores and conventional supermarkets) with expectations that (1) there won't be a lagging elasticity curve on price investments (contrary to history), so not looking beyond this morning's data, and (2) WMT will have to lap the tariff refunds in 2027, creating a divot in the [profit and loss]." Shares closed 9% lower on Thursday — marking their biggest one-day decline since May 17, 2022, when they shed 11% — after Walmart issued lackluster guidance and posted a big miss on same-store sales.

Chief financial officer John David Rainey said those lower prices were already lifting transactions and unit sales, especially in food and other staples like toys.

But lower-income shoppers have continued to cut back as they fork over a larger share of their pay at the gas pumps amid the Iran war, as global energy supply disruptions keep prices stubbornly above $4 a gallon.