Walmart trades at 42.5 times earnings, the second-highest P/E in its six-retailer peer group after Costco Wholesale at 47.1 times, while Amazon trades at 20.2 times. Over the latest four fiscal quarters, Walmart's revenue grew 6.2% with a 4.4% operating margin, compared with Amazon's 15.8% revenue growth and 12.1% operating margin. Management forecasts adjusted operating income growth of 7% to 8.5% for fiscal 2027, above its 4% to 5% sales growth outlook, and fiscal Q2 2027 profit was helped by tariff refunds that added about 7.5 percentage points to growth. For fiscal Q3 2027, Walmart forecasts operating income growth of 2% to 4% and sales growth of 3% to 3.75%, with refund money being reinvested in lower prices. The article argues the share price appears to assume Walmart will keep growing profit faster than sales, and notes that a large holding in one stock can concentrate a portfolio's risk.
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