As many companies have pointed to weakened consumer spending as a headwind, all eyes are on Walmart's (WMT) second quarter earnings on Thursday, August 15. UBS US hardline and broadline and food retail analyst Michael Lasser joins Market Domination to break down what investors need to know before heading into Walmart's earnings report.

"What we're expecting to hear is the consumer overall has been consistent. Which, keep in mind that Walmart sells mostly groceries and other household products, and it's taking market share. So what it has been experiencing is going to be a bit different than what other retailers have been experiencing," Lasser explains. He expects to see alternative profit areas, like advertising and membership fees, to grow "very rapidly," as it's has caused the stock to rise so much recently. He also anticipates Walmart to raise its full-year guidance, adding, "All of this means that the bull case on Walmart is well intact and is likely to support the stock from here."

He notes that while consumers continue to face inflationary pressures, Walmart will likely benefit as it is perceived as offering "the best value in retail." As dining continues to be an expensive area, consumers will be relying more on Walmart for their groceries at a reasonable price. Lasser explains that Walmart sells one out of every five grocery dollars in the US and is set to benefit from the trend of home-cooked meals.

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This post was written by Melanie Riehl