Walmart (WMT) shares experienced a steep decline of nearly 10% on August 20 following its fiscal second-quarter earnings report, marking the steepest single-session drop in close to five years. The sell-off was primarily driven by decelerating U.S. comparable store sales growth, which slowed to 2.6% from the previous quarter's 4.1%, representing the weakest pace in several years amid concerns over consumer purchasing power. Despite the top-line slowdown, Walmart delivered solid financial results that exceeded Wall Street expectations. The retailer reported earnings per share of $0.81 against a consensus estimate of $0.74 and total revenue of $187.94 billion, surpassing the forecast of $186.64 billion. Management also elevated its fiscal 2027 outlook for revenue, operating income, and profitability, signaling confidence in future growth despite current headwinds. Analyst sentiment remains largely positive despite the stock's significant price drop. Major firms like BTIG Research maintained their 'Buy' recommendation with a $140 target price, while others like Tigress Financial project an even higher target of $155. The consensus among 39 analysts is a 'Moderate Buy' with an average price target of $131.88, suggesting significant potential upside from current levels. Key risks and opportunities include rising energy costs impacting both operational expenses and lower-income shoppers, as well as geopolitical tensions involving Iran affecting fuel prices. However, Walmart's supplementary business units, including its advertising platform and Walmart+ subscription service, showed robust performance. The stock currently trades at a valuation discount relative to competitor Costco, presenting a potential value opportunity for investors.