Has Walmart overcome its earlier disappointments and turned into a buy?
Justin Sullivan

Walmart (NYSE:WMT) shares popped earlier this week after the retailing giant delivered strong financial figures for the second quarter. The advance allowed the stock to regain some of the massive losses it incurred after the firm released a devastating first-quarter report back in May.
Has WMT moved past the worst of the inflation pressures to become a buy?
Q2 Earnings and the State of Retail
The Arkansas-based retailer posted well-received second quarter earnings earlier this week. The firm topped expectations for both earnings and revenue.
Looking at the numbers, WMT posted Q2 non-GAAP EPS of $1.77, surpassing estimates by $0.17. At the same time, the company recorded revenue of $152.6B, rising 8% from last year and topping analysts' consensus by $2.64B.
Additionally, for the second quarter, U.S. comp sales grew 6.5% and 11.7% on a two-year stack. Meanwhile, e-commerce growth was 12% on a one-year basis and 18% on a two-year stack. Walmart also continued to gain additional market share in the grocery space.
In response to the results, Morgan Stanley stated that Walmart has appeared to demonstrate that inventory and markdown issues were under control. The investment bank also noted that it sees more upside than downside potential for the near-term.
On the other hand, John Hancock argued that Walmart (WMT) and many other companies have benefitted from revenue gains supported by inflation.
In May, WMT suffered a major setback, dropping 11% in a single session following the announcement of disappointing Q1 results. The company missed expectations and lowered its forecast as inflation pressures weighed on margins.
Following the release, shares eventually reached a 52-week low of $117.27. From there, shares have come off that level in fits and starts over the last three months. This includes a recent streak where the stock finished higher in 14 out of 16 sessions.
WMT is now trading near $137, about 17% off its 52-week low. Still, shares remain about 5% lower for 2022.
While WMT sits in the red for the year, it has outperformed many of its rivals. For instance, Target (TGT) and Home Depot (HD) have both fallen more than 20% so far this year. Meanwhile, Costco Wholesale (COST) has held up even better, with a year-to-date decline of about 2%.
Is WMT a Buy?
Wall Street has taken a relatively bullish stance on Walmart (WMT), with 20 of 39 analysts over the past 90 days labeling the stock as a Strong Buy. Another seven analysts see Walmart as a Buy. The remaining group of 12 analysts believe WMT is a Hold.
At the same time, analysts have an average target of $150.93 share. The high-water mark target for WMT is $170 a share while its lowest target is for $130 a share. 
Seeking Alpha's Quant Ratings take a more conservative stance than the average Wall Street analyst, placing the stock as a Hold. The system of grading quantitative measures gives WMT an A+ for profitability and a B for momentum. Moderating these strong qualities, WMT received a D+ and a D as it pertains to its valuation and growth.
See a complete breakdown below:

The Value Investor, a Seeking Alpha contributor, placed a Hold rating on Walmart, stating that the company is "not ringing the register yet." At the same time, fellow SA contributor Cavenagh Research outlined that Walmart is still trading at a relatively expensive price, valued at an x22.6 one-year forward P/E multiple.