Considering the economic context, Walmart (WMT.US) posted strong quarterly results on Thursday, reaching a record high. The American retail giant is benefiting from an influx of high-income consumers seeking low prices and the growth of the digital advertising business. After the results were announced, Wall Street analysts believed Walmart's winning streak would continue.

Morgan Stanley pointed out that Walmart's first-quarter results should inspire greater confidence that the retail giant will seize market share and drive healthy growth in same-store sales. At the same time, it is also expected that it will lead to extraordinary expansion in operating profit margins and an increase in profit before interest and tax. Both situations were reflected in the first quarter against the backdrop of fluctuating retail spending. Daima analyst Simeon Gutman said the narrative is working.

Investment agency Gordon Haskett said that Walmart, which received its “buy” rating, has achieved one of the best results in recent years. Although there were many highlights this quarter, analyst Chuck Grom said the biggest surprise was that the EBIT dollar flow-through indicator provided by Walmart's management team was better than expected, increasing 13.7% while sales increased 5.8%.

Meanwhile, Jefferies notes that Walmart's market share continues to expand as consumer convenience increases. The company was also impressed that Walmart's inventory levels are still under control. “We still believe artificial intelligence and automation can drive meaningful sales, profits, and multiple upside spaces,” said analyst Corey Tarlowe.

As far as Evercore ISI is concerned, the company maintained an “outperforming market” rating after Walmart announced its earnings report. The company warns that lower- and middle-income consumers in the US are still likely to experience a period of turbulence. However, as anti-inflation in grocery stores is likely to stabilize and SNAP's headwinds begin to cycle, Evercore expects consumer demand to improve in the second half of this year. The main positive factor is that Walmart's traffic, revenue, and market share are growing, while profit margins are being managed very well.

However, in contrast, Seeking Alpha analyst Justin Purohit is more cautious. He said Walmart is taking strategic steps to attract more shoppers, including opening a new store for the first time in nearly a decade and launching a high-end food line. But he warned: “However, the cost of these initiatives and continued competition from Amazon (AMZN.US), Aldi, and Kroger (KR.US) may eventually catch up with Walmart and drag down its financial performance for some time to come.”