In a case of a giant company getting even more massive, Walmart (NYSE: WMT) has been on quite a tear lately -- both in terms of its fundamentals and its share price. The latter has improved by more than 85% this year, trouncing the 28% growth of the S&P 500 index.
Some market-watchers think there's still room for the high-profile retailer to run. One analyst tracking Walmart stock recently boosted his price target by a beefy 34%. What's behind this latest burst of optimism and, more importantly, is it justified?
Bull in a retail shop
The Walmart bull in question is Ivan Feinseth of Tigress Financial Partners. In mid-December, he cranked his price target on the shares $29 higher to $115 apiece. As that suggests the stock could rise by 22% in value, Feinseth maintained his existing buy recommendation.
According to reports, Feinseth's latest take on Walmart is based on what he believes to be the company's broad and sustainable growth of late. In his analysis, he pointed out that the retail powerhouse is gaining market share across all income levels -- which is saying something, given its already considerable popularity.
For years, Walmart has been renowned as a company that very effectively leverages technology to hone its competitive edge. The Tigress analyst wrote that it is currently harnessing artificial intelligence (AI) for an in-house tool called My Assistant that allows employees to access corporate information quickly, using plain-language queries.
A restless company
Walmart is justifiably celebrated for its culture of innovation, and it shows zero signs of abandoning its fruitful embrace of technology. This is most evident in the success of its online segment, which has been helping power the fundamentals higher since the company began pushing it assertively.
Walmart is the 800-pound gorilla of American retail for a reason. Personally, I like the fact that it never rests on its laurels, and insists on moving forward harder than nearly every other peer. Feinseth's latest evaluation feels realistic to me, and like him, I'm very bullish on this stock's potential.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Walmart. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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