Walmart Stock Still Has Room to Grow Despite Skeptics' Doubts. Here's Why.

Core Insights - Walmart has shown strong performance in the first half of the year, with stock up over 32%, outperforming the S&P 500's 14% gain [1] - Despite skepticism about further upside, Walmart's robust core retail business and growth in advertising and eCommerce suggest continued potential [1] Advertising Segment Growth - Walmart's advertising segment has become a significant growth driver, leveraging its reach across approximately 4,700 U.S. stores [3] - The company has transformed 170,000 digital screens in stores for third-party ads, enhancing customer engagement and sales [3] - Walmart Connect's revenue is projected to reach $6.18 billion by 2025, with a 26% increase in the first quarter of fiscal year 2025 [3][4] - The active advertiser base grew by about 19%, supported by a 50% increase in marketplace sellers [4] E-Commerce Expansion - Walmart is the second-largest eCommerce retailer in the U.S., with online sales rising from $39.7 billion to $64.9 billion during the pandemic [5] - Online sales have continued to grow by at least $9 billion annually, contributing to $100 billion in sales last year [5] - From 2018 to 2023, Walmart's online sales increased by 31.8% [5] Data Analytics and Competitive Edge - Walmart's analytics tool, Luminate, allows retailers to utilize first-party shopping data for better decision-making [6] - This initiative is part of a broader strategy to enhance Walmart's competitive position in the market [6] Overall Performance and Outlook - Walmart has consistently performed well, even during economic downturns, and continues to reward shareholders with growing dividends [7] - Despite concerns about stock price sustainability, growth in advertising and eCommerce segments alleviates these worries, with analysts giving a strong buy rating and forecasting a 7% upside [8]