Walmart Outperforms Peers as Customers Flock to Grocery Aisles

As the U.S. labor market cools and inflation ticks up, investors expect Walmart's management to adopt a more cautious tone on customer demand when the company reports its second-quarter results on Thursday. However, Walmart's low-price model and dominance in the grocery sector have positioned it to weather the economic storms better than its competitors.

The Arkansas-based retailer has surpassed earnings estimates for 11 consecutive quarters, according to LSEG data, sending its valuation soaring even as other consumer staples companies have struggled this year. Walmart's stock has gained nearly 37% in the last 12 months, one of the notable non-tech companies leading a market that has largely shrugged off the effects of the ongoing trade war.

Analysts view Walmart as a barometer for the state of the U.S. consumer, as it is one of the largest and most recognizable companies in the country. While U.S. shoppers remain resilient, they are becoming more selective in their purchases and have shown signs of trading down. Walmart's ability to navigate this environment and maintain its strong performance will be closely watched by investors and analysts alike.