11:31 AM EDT, 08/22/2025 (MT Newswires) -- Walmart ( WMT ) shares' post-earnings decline represents a buying opportunity, with the retail giant's resilience likely to persist as the operating environment becomes more challenging later this year, UBS Securities said in a note e-mailed Friday.

The stock, which tumbled 4.5% on Thursday after the retailer's fiscal second-quarter earnings missed Wall Street's views, remains a buy at UBS. Walmart's ( WMT ) total revenue, however, came in stronger than expected.

"The market's reaction suggested that the retailer cannot afford to experience an earnings miss while trading at this multiple," the brokerage's analysts, including Michael Lasser, said. "Though, this is an overly isolated read."

On Thursday, Walmart ( WMT ) raised its full-year outlook amid expectations for continued market share gains, with Chief Executive Doug McMillon saying the impacts of tariffs "has been gradual enough that any behavioral adjustments by the customer have been somewhat muted."

"We believe (Walmart ( WMT )) remains a compelling story, with its transformation journey and earnings power unscathed by tariffs or other macro or external headwinds," Lasser wrote. "Importantly, we think its more favorable positioning relative to the rest of retail will probably become even more evident as the year unfolds, when the operating environment could become much more challenging."

Walmart ( WMT ) shares rose 0.2% in Friday trade. The stock is up 8.6% so far this year.

During an earnings conference call on Thursday, Walmart's ( WMT ) McMillon vowed to keep prices low for as long as possible.

This should help Walmart ( WMT ) accelerate its market share momentum in the second half and in 2026, UBS' Lasser wrote.

Price: 97.83, Change: -0.13, Percent Change: -0.14