WMT

The article compares Alibaba and Walmart as retail investment options for 2026. While Alibaba trades at a valuation discount with strong cloud computing potential, the author recommends Walmart due to its regulatory clarity, omnichannel dominance, and consistent growth. Alibaba faces geopolitical risks and regulatory uncertainty in China, whereas Walmart demonstrates strong e-commerce expansion and operational stability.

The article highlights how the Zacks Earnings ESP (Expected Surprise Prediction) filter can help investors identify stocks likely to beat earnings estimates. Two retail and wholesale stocks are featured: Walmart with a +1.44% ESP ahead of its November 19, 2026 earnings report, and O'Reilly Automotive with a +2.11% ESP before its October 28, 2026 earnings release. Both stocks hold #3 (Hold) Zacks Rank ratings and positive ESPs, suggesting potential for earnings beats.

Walmart has been heavily searched on Zacks.com and has outperformed the S&P 500 with a +10.5% return over the past month. The company shows strong earnings growth expectations (+9.1% for current fiscal year, +12.1% for next year) and has consistently beaten consensus estimates. However, it carries a Zacks Rank #3 (Hold) rating and trades at a premium valuation (Grade D) compared to peers, suggesting it may perform in line with the broader market in the near term.