Walmart just had its worst day in four years, opening up an opportunity to scoop up shares on the cheap, according to JPMorgan. The investment has an overweight rating on the retailer. 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. WMT mountain 2026-08-20 Shares of Walmart fell 9% on Thursday. However, investors shouldn’t let that decline deter them from investing in Walmart, particularly as the superstore chain is poised to benefit from alternative profit pools and AI automation benefits, according to JPMorgan. “Ultimately, we believe the next iteration is for buyside estimates to move up, not down,” Horvers wrote. “Surely, there is often a day or two stock lag and geopolitics weigh, but this is a lower-income consumer problem … and the long-term share story via marketplace growth and alternative profit pool expansion was actually affirmed.” JPMorgan’s call falls in line with consensus on Wall Street. Of the 44 analysts covering Walmart, 40 have a buy or strong buy on the stock, LSEG data shows. Shares have fallen 7% in 2026.
