Why This Top-Rated Analyst Says Walmart Stock (WMT) Is No Longer a Buy

FomoAnxiety · 2026-03-05T21:53:15+00:00

Walmart's stock fell 3.7% after a downgrade to Hold by analyst Hans Engel, citing its high price-to-earnings ratio compared to peers. The downgrade follows a 30% stock rally over the past year amid broader market concerns.

FomoAnxiety

2026-03-05 21:53:15

Abstract generation in progress

Walmart’s WMT -3.33% ▼ stock fell 3.7% on March 5 after a top-rated analyst downgrade the company’s shares.

Claim 70% Off TipRanks Premium

Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
Stay ahead of the market with the latest news and analysis and maximize your portfolio’s potential

Hans Engel, a top four-star rated analyst at Erste Group downgraded WMT stock to Hold from Buy previously, citing valuation concerns. In a note to clients, Engel said that the stock’s price-to-earnings ratio of 45 is much higher than the average among its peers that include Target TGT +0.23% ▲ and even Amazon AMZN +1.01% ▲ .

“The expected P/E ratio is currently much higher than the average of peer companies. We therefore do not expect the stock to outperform the sector index in the medium term,” wrote Engel in his commentary. The downgrade comes after WMT stock has rallied nearly 30% in the past year, including a 10% gain year-to-date.

The broader market selloff extended Thursday afternoon as the Middle East conflict entered its sixth day, spurring worries about inflation and whether the Federal Reserve will cut interest rates. The S&P 500 Consumer Staples Index posted its worst intraday performance since April 21, falling as much as 2.2%. Other notable decliners in the sector included Dollar General, Philip Morris, Costco, and Procter & Gamble.

Disclaimer & DisclosureReport an Issue

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.