Walmart Earnings: Top Line Expands Further as Consumers Seek Value Amid Tighter Economic Conditions

Wide-moat Walmart delivered third-quarter results that were mostly in line with our expectations as it continued to attract value-conscious consumers to its stores. The stock tumbled, though, as management cited tumultuous spending patterns leading into the holiday season as inflation and tighter economic conditions remain headwinds. We believe Walmart is well positioned to navigate a slower spending environment given its impressive scale and enticing low-price value proposition in high-frequency categories such as grocery. We plan to modestly raise our $145 fair value estimate due to time value of money as shares approach fairly valued territory.