Walmart stock is holding up amid the stock market shellacking

Scott Olson/Getty Images News

Walmart (WMT) is the leading gainer in the Dow Jones Industrial Average with a 2.26% gain as investors turned defensive into the tougher macro and interest rate backdrop.

The retail stock is catching attention with the broad market selling off on concerns over the impact of higher interest rates. Some analysts have noted that inflation can serve as a tailwind for Walmart (WMT) if consumers trade down and with the Bentonville giant’s ability to leverage off costs noted to be much easier than smaller peers.

Morgan Stanley thinks WMT could be a tradedown beneficiary given its value proposition and diverse product mix. Analyst Simeon Gutman also pointed out that WMT was not as outsized a COVID beneficiary as other scaled retailers and e-commerce players, so reversion risk is lower for WMT and it should display more earnings resilience.

Walmart (WMT) has outperformed the S&P 500 Index and rivals Target and Costco in 2022.

Walmart (WMT) is scheduled to report earnings on May 17. The consensus expectations are for revenue of $138B and EPS of $1.47 to be disclosed. WMT has topped sales expectations in seven straight quarters.