Walmart is basically a tech company now. Honestly, if you still think of it as just a place to buy bulk paper towels and cheap cereal, you're missing the bigger picture of what's happening with WMT right now. The stock is hovering near its all-time highs for a reason. Specifically, as of January 16, 2026, Walmart closed at $119.20, just a hair below its 52-week peak of $121.23.
It's been a wild ride. While other retailers are struggling to keep their heads above water, Walmart is somehow speeding up.
What is actually driving Walmart stock news today?
The big news hitting the wires this week isn't just about the price on the screen. It's about the massive leadership change happening right now. Doug McMillon is stepping down, and John Furner is set to take the reins as CEO on February 1.
Wolfe Research recently reiterated an Outperform rating with a $130 price target because they trust this "deep leadership bench." It's not a panic move. It's a passing of the torch. Furner has been running the U.S. division, which is the heart of the beast, so investors aren't exactly shaking in their boots.
But let’s look at the numbers because they’re kind of insane:
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- eCommerce Growth: Online sales jumped 27% globally in the last reported quarter.
- Advertising Power: Walmart Connect (their ad business) grew 33% in the U.S.
- Delivery Speed: They can now hit 95% of U.S. households with delivery in under three hours.
That last point is key. Walmart is using its 10,000+ stores as mini-warehouses. Amazon has to build massive fulfillment centers; Walmart already has them on every corner. It’s a logistical cheat code.
The Dividend King status is real
If you're into passive income, you've probably noticed that Walmart just marked its 52nd consecutive year of dividend increases. They hiked the payout by 13% to $0.94 per share annually. That’s a big jump for a company this size. Usually, these "Dividend Kings" give you a tiny 1-2% bump just to keep the streak alive. Not this time.
Management is basically screaming that they have too much cash. They’ve returned about $132 billion to shareholders through buybacks and dividends over the last decade. That’s more than the entire market cap of most S&P 500 companies.
Is the valuation getting too spicy?
Now, for the "kinda" bad news. Or at least the part that should make you pause.
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Walmart is currently trading at a P/E ratio of about 41. For a grocery-heavy retailer, that is historically expensive. To put it in perspective, the median S&P 500 P/E is usually much lower. You’re paying a premium because the market treats Walmart like a high-growth tech platform rather than a discount store.
Some analysts, like those at InvestingPro, suggest the stock is trading above its "Fair Value." There's a slight execution risk with the CEO transition, even if Furner is a veteran. If the February 19 earnings report shows even a tiny crack in consumer spending, that 41x multiple might feel heavy.
Why higher-income shoppers are changing the game
One of the weirdest parts of the recent data is who is shopping there. It’s not just the budget-conscious crowd anymore. Walmart is gaining massive market share with households making over $100,000 a year.
Why? Because the Walmart+ membership and the revamped app actually work. People who used to exclusively shop at Target or Whole Foods are realized that getting groceries delivered in two hours for a lower price is a better deal. It turns out convenience is the ultimate equalizer.
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What to watch for in the coming weeks
The market is waiting for the February 19 earnings report. This will be the first big test for the post-McMillon era. Investors want to see if the "Big Billion Days" event in India (via Flipkart) and the U.S. holiday season lived up to the hype.
If you're holding the stock or thinking about jumping in, keep these specific triggers in mind:
- Operating Margins: Watch if the high-margin ad business is actually offsetting the cost of labor and shipping.
- Inventory Levels: They’ve kept inventory growth at about half the rate of sales growth lately. If that stays lean, profits stay fat.
- Membership Income: If Walmart+ renewals start to lag, the "Amazon Prime competitor" narrative takes a hit.
Actionable insights for investors
Don't chase the high without a plan. If you’re a long-term dividend investor, the current price is less important than the 52-year track record of raises. You’re buying a fortress. However, if you're looking for a quick swing trade, wait for a potential pullback toward the $112-$115 support zone before entries.
Keep an eye on the February 1 transition. John Furner is expected to keep the strategy consistent, but any "conservative guidance" during his first earnings call as CEO could trigger a temporary dip. That might be the opening most sidelined investors have been waiting for.