12:27 PM EDT, 05/13/2024 (MT Newswires) -- Walmart ( WMT ) is expected to report "solid" Q1 financial results and reaffirm its full-year guidance amid a challenging retail backdrop in the US, Oppenheimer said in a note Monday.

Analysts, including Rupesh Parikh, said they see the retail giant hitting the high end of its expected adjusted earnings range of $0.49 to $0.52 when it reports its Q1 earnings on Thursday. The company's US stores are expected to keep gaining customers and online sales are likely to keep growing and push up sales by at least 3%. However, big sales boosts from lower inflation are unlikely, they added.

The company also continues to have a superior value proposition compared with Amazon.com ( AMZN ) in grocery, mostly due to lower annual subscription costs and more attractive pricing, the analysts said.

Walmart's ( WMT ) long-term positives include "potential for continued grocery share gains, increasing contribution from alternative revenue streams, ongoing benefits from e-commerce investments, and an improved international footprint," the analysts said, adding that the stock remains one of their top picks.

Oppenheimer has an outperform rating and a $67 price target on Walmart ( WMT ).

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