Wall Street Thinks Walmart Stock Is a Buy. Here's Why I Don't.

By Will Healy – Feb 13, 2026 at 4:35AM ESTKey PointsWalmart impressed investors with its AI, e-commerce, and supply chain improvements.Its revenue growth is positive but modest.The company's valuation is far above the S&P 500 and a key competitor.These 10 Stocks Could Mint the Next Wave of Millionaires ›NASDAQ: WMTWalmartMarket Cap$1.1TToday's Changeangle-down(3.78%) $4.87Current Price$133.64Price as of February 12, 2026 at 4:00 PM ETWalmart stock has made big gains on comparatively little improvement.When it comes to Walmart (WMT +3.78%) stock, most analysts rate it a buy or a strong buy. The world's largest retailer has worked to win over more high-income shoppers and has applied artificial intelligence (AI) to improve logistics and foster a growing digital ad platform. Moreover, a move to the Nasdaq seems to have attracted more investors. Nonetheless, when investors take a deeper look into the financial metrics, it calls into question whether Walmart is truly prospering in the current environment. Thus, despite those successes, now is probably not a good time to add shares of Walmart stock, and here's why. Image source: Getty Images. Where Walmart stock stands Walmart has stood out by reviving its business in recent years. After years of struggle, it has leaned into technology to boost its e-commerce presence and improve its supply chain. Additionally, after stumbling internationally in past years, it has adapted product offerings to meet local needs and focused on e-commerce in markets like Mexico, China, and India to improve sales abroad. Amid the e-commerce focus and use of AI, some analysts are now thinking of Walmart as a tech stock. With that, its stock is up by nearly 170% over the last five years, well ahead of the S&P 500. ExpandNASDAQ: WMTWalmartToday's Change(3.78%) $4.87Current Price$133.64Key Data PointsMarket Cap$1.1TDay's Range$129.31 - $134.4952wk Range$79.81 - $134.49Volume38KAvg Vol30MGross Margin23.90%Dividend Yield0.70% Unfortunately, for all of these improvements, Walmart remains a slow-growth enterprise. In the first nine months of 2025, the company reported almost $573 billion in revenue, a growth rate of 4%. However, the numbers look less encouraging when looking at them closely. Its net income for the same period of just under $18 billion was up by nearly 25% from year-ago levels. Unfortunately, "other gains and losses" accounted for most of that gain, and that primarily came from rising values in its equity investments. When factoring in the increase in selling, general, and administrative expenses, operating income actually fell by 2% over the same period. Moreover, despite that performance, Walmart arguably trades at a premium valuation. Its price-to-earnings (P/E) ratio now stands at 45. That is well above the S&P 500's average earnings multiple of 30. Still, the more surprising part of that is that it makes Walmart stock more expensive than Amazon, which now sells at 30 times earnings. Given Walmart's growth challenges, one has to wonder whether the stock is worth that premium. Do not buy Walmart stock Walmart is almost certainly going to remain a force in retail, but that likely does not make its stock a buy. Indeed, Walmart has made moves in e-commerce, AI, and in its international operations that have caught the attention of investors. Unfortunately, for all of these efforts, its financial gains appear marginal even though its stock price has risen. Consequently, investors now must pay a premium valuation for lackluster growth. Until that dynamic changes, investors should probably refrain from adding shares.Read NextFeb 12, 2026 •By Jennifer SaibilShould You Buy Walmart Stock Before Feb. 19?Feb 12, 2026 •By Jennifer SaibilThis Top Dividend Stock Just Joined Meta, Tesla, Broadcom, and Berkshire Hathaway in the $1 Trillion ClubFeb 12, 2026 •By Lawrence Rothman, CFABest Dividend Stock to Buy Right Now: Walmart vs. Macy'sFeb 11, 2026 •By Catie HoganShould You Buy Walmart Stock Before Earnings?Feb 9, 2026 •By David Jagielski, CPAWalmart Joins the Trillion-Dollar Club. Is the Stock Overvalued?Feb 6, 2026 •By William DahlWalmart Is Now a $1 Trillion Company. If You'd Invested $100 into Its IPO, Here's How Much You'd Have TodayAbout the AuthorWill Healy is a contributing Motley Fool stock market analyst covering technology and consumer goods industries.

Before The Motley Fool, Will was a freelance writer covering stocks and personal finance for MSN Money, Yahoo! Finance, and Nasdaq. Earlier in his career, he was an expert in geographic information systems, applying spatial and IT skills to perform RF and demographic analysis in the telecom industry. He holds a bachelor’s degree in journalism from Texas A&M University and an MBA in finance and strategy from the University of Texas at Dallas.TMFWillHealyX@HealyWritingStocks MentionedWalmartNASDAQ: WMT$133.64 (+3.78%) $+4.87AmazonNASDAQ: AMZN$199.57 (2.21%) $4.51*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.