Two of the most closely watched retail stocks, Walmart (WMT) and Target (TGT) recently reported earnings. Which stock looks in better shape now?
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Using TipRanks’ Stock Comparison Tool, we compared WMT and TGT across analyst ratings, price targets and key financial metrics to see which offers more upside after earnings. As can be seen below, WMT has the biggest upside.
Is Walmart Stock a Good Buy?
Walmart’s Q1 FY27 revenue grew 7.3% year-over-year to $177.8 billion surpassing the Street’s consensus estimate of $174.84. The fiscal first-quarter top line gained from 26% growth in global e-commerce sales, supported by store pickup and delivery, as well as marketplace. Additionally, the company’s advertising revenue surged 37%. U.S. comparable sales increased 4.1%. Walmart’s U.S. division benefited from strength in its grocery sales and higher general merchandise business. Also, spending by higher-income households supported Q1 revenue.
Walmart’s Q1 FY27 adjusted EPS (earnings per share) rose 8.7% year-over-year to $0.66, in line with expectations.
Walmart expects Q2 FY27 net sales growth in the range of 4% to 5% and adjusted EPS of $0.72 to $0.74. Analysts were expecting adjusted EPS of $0.75. Higher fuel prices due to the tensions in the Middle East and macro uncertainty are weighing on consumer spending.
Also, the company kept its full-year outlook intact. It continues to expect FY27 net sales growth of 3.5% to 4.5% and adjusted EPS between $2.75 and $2.85.
Is TGT a Good Stock to Buy Now?
Target reported first-quarter net sales of $25.4 billion, a 6.7% increase compared to the same period last year. Adjusted earnings per share came in at $1.71, a 31.6% jump from the adjusted EPS of $1.30 reported in the first quarter of 2025 and a clear beat of the $1.47 consensus estimate.
After four consecutive periods of declining traffic, Target saw a 4.4% increase in customer visits this quarter. This traffic boost helped drive 5.6% growth in comparable sales, a significant turnaround from the decline seen a year ago.
The company now expects net sales growth to land around 4%, which is two percentage points higher than its previous forecast. Additionally, management expects full-year adjusted EPS to finish near the high end of its prior range of $7.50 to $8.50.
Conclusion
Walmart may have the biggest upside of the two stocks but the momentum, according to earnings, appears to lie with Target. Both stocks are feeling the heat of consumer uncertainty, but TGT appears to be in a more confident position as the summer season hits. How both stocks can keep offering customers value, quality and efficiency will determine who comes out on top.