Walmart is an omnichannel powerhouse that excels in strategy execution.
While some may argue that Walmart stock is overpriced because it’s trading at a forward price-to-earnings ratio of more than 36 and is approaching its 52-week high of $117, there is still plenty of room for growth. Walmart is expanding globally and has ambitious plans. It’s also far more than a traditional retailer now.
Let’s have a look at seven reasons why investors should be very bullish on Walmart’s stock and buy like there’s no tomorrow.
Image source: Getty Images.
Walmart wins in all economic environments
In good economies and bad, Walmart is a household name because it competes on low prices. As shoppers’ wallets become more sensitive, Walmart’s convenience and low-cost inventory become more appealing. Walmart is also expanding its premium offerings, which are bringing in higher-earning shoppers. Most impressively, more than 95% of consumers in the U.S. visit a Walmart at least twice per year, according to Capital One‘s Shopping Research.
Walmart wants to close the Amazon gap in e-commerce
Walmart’s e-commerce business is growing at double-digit rates year over year. In its latest quarter, Walmart impressed with 27% growth in its e-commerce business. Walmart has its brick-and-mortar stores to serve as hubs for a quickly growing online business. This is hugely important, as 90% of the U.S. population lives within 10 miles of a Walmart. Walmart is demonstrating its ability to compete with Amazon in terms of speed and efficiency and is working to narrow the gap in e-commerce market share.
Walmart Connect’s revenue is growing fast
You may not have known that Walmart has an aggressively growing advertising business. Walmart Connect is similar to Amazon Ads and has the potential to become a multibillion-dollar profit center for the company. The company’s ad business grew 33% in the U.S. in its latest quarter. Walmart Connect launched in 2021 following the rebranding of Walmart Media Group. This is a high-margin business and another avenue in which Walmart is matching the strategy of its rival Amazon.
Walmart’s grocery and essentials business is gigantic
More than 50% of Walmart’s revenue comes from its grocery business. Low-cost groceries keep consumers coming back every week, particularly during periods of high inflation. Walmart’s grocery business dominates its competitors both in brick-and-mortar and online. In addition to its regular stores, Walmart also sells groceries through its Neighborhood Markets chain, Supercenters, and Sam’s Clubs. Walmart sold more than $276 billion in groceries in fiscal 2025. Sam’s Clubs added another $59 billion in grocery sales in the same period. This makes Walmart the biggest grocery seller in the U.S.
(1.17%) $1.30
Current Price
$112.71
Key Data Points
$899B
Day’s Range
$111.12 – $112.78
52wk Range
$79.81 – $117.45
Volume
617K
Avg Vol
18M
Gross Margin
23.90%
Dividend Yield
0.83%
Walmart is expanding globally
Walmart is expanding in Mexico and Canada, operating more than 3,000 and 400 stores, respectively. The company also owns the majority stake in India’s Flipkart. There’s a chance Flipkart could go public soon, which would unlock even more shareholder value. Global retail growth provides Walmart with further diversification and revenue. Walmart now operates in 19 countries.
Walmart is expanding into high-margin health spaces
Walmart is expanding into other high-margin industries, such as health clinics and prescription services, as it seeks to become an affordable and convenient entry point for healthcare in the United States. The retail giant is also creating new revenue opportunities through banking, bill pay, and partnerships in financial services. Its major “everything app,” OnePay, has more than 3 million active users.
Walmart is a supremely well-run company
It’s safe to say Walmart has succeeded in becoming an omnichannel giant that’s far beyond the traditional retailer. It aspires to be a one-stop shop that competes head-to-head with Amazon.
The company has raised its dividend for more than 50 consecutive years. It boasts excellent cash flow from its operations in the U.S. and abroad and has made significant investments in technology that will keep it at the forefront of the retail industry for many years to come. In its most recent earnings report, Walmart’s free cash flow had increased to $8.8 billion.
Walmart isn’t a flashy start-up, but it is extremely well run and has consistently executed its plans. The company has several highly profitable revenue streams and growth engines. It’s not just a retailer; Walmart has become an ecosystem unto itself. Investors can buy Walmart with confidence that it’ll continue to grow for many more years.
