11:23 AM EDT, 08/15/2024 (MT Newswires) -- Walmart's ( WMT ) fiscal Q2 results were slightly better than expected due to its heavy investments in pricing, store improvements, technology, and supply chain have helped the company keep gaining market share, Truist Securities said in a note Thursday.

The results were "in-line/a touch above our expectations," analysts, including Scot Ciccarelli, said, adding that growth in Walmart's ( WMT ) other businesses like third-party sales, memberships, and advertising is helping increase its profit margins even though consumer spending seems to be slowing down.

"While a more aggressive rate cutting cycle may favor more cyclical stocks like Buy-rated The Home Depot or Lowe's, Walmart ( WMT ) currently provides investors with a bastion of stability in a tougher environment," the analysts said.

The company's plan to increase profit margins over the long term had an "inconsistent" start due to heavy investments in various projects like store remodels. However, margin expansion has been more consistent recently, due to growth in its non-retail businesses, the analysts said.

Truist Securities has a hold rating and a $64 price target on Walmart ( WMT ).

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