12:05 PM EST, 11/12/2024 (MT Newswires) -- Walmart ( WMT ) is expected to see a potential upside in fiscal Q3 US comparable sales and continued gross margin expansion, BofA Securities said in a note emailed Tuesday.

BofA estimates a 3.5% US comparable sales growth for the quarter, below the consensus estimates of 3.6%, but the investment firm said it still sees potential for upside as Bloomberg Second Measure credit and debit card data shows an acceleration in observed sales for Walmart ( WMT ).

BofA also forecasts fiscal Q3 adjusted earnings of $0.52 per share on revenue of $167.11 billion, versus consensus estimates of $0.53 and $167.62 billion, respectively.

The retail giant is set to release its fiscal Q3 results on Nov. 19.

Walmart ( WMT ) is poised for continued gross margin expansion, driven by increasing contributions from higher-margin profit streams such as digital advertising, fulfillment services, and third-party marketplace, BofA said.

The company also continues to gain market share across incomes and product categories given its value offering and digital convenience. Furthermore, Walmart's ( WMT ) investments in supply chain, automation, digital technologies, and third-party marketplace offerings could further support sales and gross margin upside, BofA added.

BofA reiterated its buy rating on Walmart ( WMT ), with a price target of $95.

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