Walmart Inc. (WMT) is having quite the moment. Shares hit a fresh all-time high Tuesday after the retail behemoth announced it's joining the Nasdaq-100 index later this month. The stock climbed even as the broader Nasdaq slipped 0.43%, proving that sometimes company-specific news matters more than what the overall market is doing.

A Big Index Shuffle

Starting January 20, Walmart will officially become part of the Nasdaq-100 Index, the Nasdaq-100 Equal Weighted Index, and the Nasdaq-100 Ex-Tech Sector Index. The move bumps out AstraZeneca PLC, underscoring Walmart's expanding footprint in modern markets. It's not just symbolic—index inclusion means automatic buying from funds that track these benchmarks, which can provide a nice tailwind for the stock.

This week also brought news of a partnership with Google designed to upgrade Walmart's digital shopping experience. By integrating Google's Gemini AI technology, Walmart and Sam's Club customers will get personalized product recommendations and access to lightning-fast delivery, including local orders arriving in under three hours. It's a clear signal that Walmart is leaning hard into tech-powered retail to stay competitive.

The timing is interesting. While the Russell 2000 was up a modest 0.16% Tuesday morning, the Nasdaq was down, yet Walmart shares pushed higher anyway. That kind of divergence suggests investors are responding directly to the company's announcements rather than getting swept up in broader market currents.

What the Charts Are Saying

From a technical perspective, Walmart is showing real strength. The stock is trading 4.9% above its 20-day simple moving average and 12.5% above its 100-day SMA—solid evidence of short-term momentum. Over the past year, shares have climbed approximately 30.39% and are now much closer to their 52-week highs than lows.

The Relative Strength Index sits at 66.83, which falls into neutral territory—not overbought, not oversold. Meanwhile, the MACD indicator is riding above its signal line, a classic bullish sign. Put those two together and you get a mixed picture: momentum looks decent, but there's enough ambiguity to keep traders cautious.

Key support to watch sits around $110.50. If the stock pulls back, that's the level technical traders will be eyeing.

Earnings on the Horizon

The next big test comes February 19, when Walmart reports earnings. Investors are expecting solid growth, with consensus estimates calling for earnings per share of 72 cents, up from 66 cents a year ago. Revenue is projected to hit $189.18 billion, climbing from $180.55 billion in the same quarter last year.

Here's the catch: Walmart trades at a price-to-earnings ratio of 41.2x, which is definitely on the pricey side. That premium valuation means the market is betting on continued strong performance. Any stumble could lead to a sharp repricing.

Analyst sentiment remains upbeat. The consensus rating is a Buy, with an average price target of $123.88—roughly 4% above current levels. Several major firms recently raised their targets:

• Barclays: Overweight rating, target lifted to $125.00
• Oppenheimer: Outperform rating, target raised to $125.00
• Mizuho: Outperform rating, target increased to $125.00

The valuation question: Sure, the stock trades at a premium multiple, but analysts appear comfortable with it given the expected 9% earnings growth. They see the valuation as justified, not stretched.

Scorecard Snapshot

Looking at a broader evaluation of Walmart's fundamentals versus the market:

• Momentum: Bullish (Score: 77.9/100) — The stock is clearly outperforming.
• Quality: Strong (Score: 93.35/100) — The balance sheet looks healthy and stable.
• Value: Risk (Score: 44.46/100) — Trading at a steep premium compared to peers.

Bottom line: Walmart scores high on quality, which reflects solid financial health. But that low value score is a yellow flag—new investors might be buying in at a premium, which carries inherent risk if sentiment shifts or earnings disappoint.

ETF Implications

Walmart's index inclusion matters beyond just the Nasdaq-100. The stock already holds significant weight in several exchange-traded funds:

• iShares U.S. Consumer Discretionary ETF (IYC): 4.65% weight
• Motley Fool Capital Efficiency 100 Index ETF (TMFE): 5.31% weight
• Simplify Next Intangible Core Index ETF (NXTI): 5.35% weight

Why this matters: When a stock carries this much weight in a fund, any major inflows or outflows from those ETFs automatically trigger buying or selling of the underlying shares. That can amplify price moves in either direction.

Current Trading Action

At the time of publication Tuesday, Walmart (WMT) shares were trading up 1.63% at $119.89. The stock continues to hold near record territory as investors digest the index news and look ahead to the upcoming earnings report.