7 Reasons to Buy WMT Stock Like There's No Tomorrow

Core Viewpoint - Walmart is positioned as a strong investment opportunity due to its robust growth, strategic execution, and expansion into various sectors, outperforming the S&P 500 both year-to-date and over the past five years [1][2]. Group 1: Financial Performance and Market Position - Walmart's stock has increased over 24% year-to-date, indicating strong market performance [1]. - The company is trading at a forward price-to-earnings ratio of over 36, nearing its 52-week high of $117, yet still presents growth potential [2]. - Walmart's market capitalization stands at $888 billion, with a current stock price of $111.45 [8]. Group 2: E-commerce and Advertising Growth - Walmart's e-commerce business has shown impressive growth, with a 27% increase in the latest quarter, leveraging its physical stores as distribution hubs [5]. - The advertising segment, Walmart Connect, has grown by 33% in the U.S. and is expected to become a significant profit center, similar to Amazon Ads [6]. Group 3: Grocery and Essentials Dominance - Over 50% of Walmart's revenue is derived from its grocery business, which generated more than $276 billion in sales in fiscal 2025, making it the largest grocery seller in the U.S. [7]. - The grocery segment remains resilient, particularly during inflationary periods, driving consistent customer traffic [4]. Group 4: Global Expansion and Diversification - Walmart operates over 3,000 stores in Mexico and 400 in Canada, and holds a majority stake in India's Flipkart, which may go public soon, enhancing shareholder value [8]. - The company is expanding into high-margin sectors such as healthcare and financial services, creating new revenue streams [9]. Group 5: Operational Excellence - Walmart has a history of raising dividends for over 50 consecutive years and reported a free cash flow of $8.8 billion in its latest earnings report, showcasing strong operational cash flow [12]. - The company is recognized for its effective management and execution of strategic plans, evolving into an ecosystem beyond traditional retail [13].