Why Walmart (WMT) is a Top Stock for the Long-Term


Building an investment portfolio from scratch can be difficult, especially if you’re new to investing. It’s easy to feel overwhelmed with so many different investment options out there, but focusing on stocks that are set to outperform the market over the next 12 months is an excellent place to start.

Now, let’s break down why adding this one exceptional stock, highlighted below, to your portfolio could be a recipe for success.

Walmart Inc. has evolved from just being a traditional brick-and-mortar retailer into an omnichannel player. In this regard, acquisitions; partnerships; delivery programs like Walmart + and Express Delivery; and investment in online e-commerce platform Flipkart are noteworthy. These position the company to keep pace with the changing retail ecosystem and stay firm in the presence of rivals like Amazon and Target. Markedly, Walmart’s product offerings include almost everything from grocery to cosmetics, electronics to stationery, home furnishings to health and wellness products, and apparel to entertainment products, to name a few.

Since being added to the Zacks Focus List on May 30, 2017 at $26.04 per share, shares of WMT have increased 263.9% to $94.76.

For fiscal 2025, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.01 to $2.48. WMT boasts an average earnings surprise of 9.3%.

Earnings for Walmart are forecasted to see growth of 11.7% for the current fiscal year as well.

Since stock prices respond to earnings estimate revisions, it can be very profitable to buy stocks with an increased earnings outlook. By buying a Focus List stock like WMT, then, you’re likely getting into a company whose future earnings estimates will be raised, potentially leading to price momentum.

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Walmart (WMT) has established itself as a top stock for the long-term due to several key factors that make it a strong investment choice. Here are some reasons why Walmart should be considered as a top stock for long-term investors:

1. Strong financial performance: Walmart has consistently delivered strong financial results, with steady revenue growth and profitability. The company’s scale and diverse business segments provide stability and resilience in various economic conditions.

2. E-commerce growth: Walmart has made significant investments in its e-commerce capabilities, which have led to impressive growth in online sales. The company’s strategic partnerships and acquisitions in the digital space have positioned it well to compete with e-commerce giants like Amazon.

3. Market leadership: Walmart is a dominant player in the retail industry, with a large and loyal customer base. Its network of stores, distribution centers, and supply chain infrastructure give it a competitive edge over its peers.

4. Focus on innovation: Walmart is continuously innovating and adapting to changing consumer preferences and technology trends. The company has launched new services like Walmart+, a subscription-based membership program, and expanded its offerings in areas like grocery delivery and curbside pickup.

5. Dividend growth: Walmart has a long track record of paying dividends to its shareholders, with consistent increases over time. This makes it an attractive choice for income-oriented investors looking for steady and reliable dividend income.

Overall, Walmart’s strong financial performance, e-commerce growth, market leadership, focus on innovation, and dividend growth make it a top stock for long-term investors seeking a stable and reliable investment option in the retail sector.

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