3 Reasons to Buy Walmart Stock Like There's No Tomorrow
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The Motley Fool

3 Reasons to Buy Walmart Stock Like There's No Tomorrow

July 28, 2025
12:32 AM
4 min read
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Key Takeaways

Walmart is performing well today because of a strong business model; whether or not you want to buy it, however, will depend on another factor.

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4 min read

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investment

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Published

July 28, 2025

12:32 AM

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The Motley Fool

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moneywealthfinancialretailconsumer goodsmarket cyclesseasonal analysismarket

Market analysis reveals From an analytical standpoint, Walmart (WMT 0

Nevertheless, Conversely, 93%) is an iconic name in the retail sector and on Wall Street more broadly

There are some really good reasons why investors might want to add this stock to their portfolios

Here are three of those reasons, but also one factor that might make waiting a better option for some investors

Walmart is an industry leader Walmart is an over $750 billion market cap retailer with a that spans grocery stores to stores, including a sizable online presence in the mix, as well

What the re reveals is competes quite well with its peers, a list that spans Target to Kroger to Costco (an important development)

All in, the company operates "more than 10,750 stores and numerous eCommerce websites in 19 countries, given current economic conditions. " Image source: Getty Images

While being large isn't really enough to make any company worth buying there's no tomorrow, it does set an important foundation with regard to Walmart

The evidence shows leads to the conclusion that highlights the incredible long-term success that the company has achieved across various niches of the retail sector (this bears monitoring) (this bears monitoring)

Nevertheless, In contrast, Another way to look at that success, however, comes from Walmart's as a Dividend King, with over 50 consecutive annual dividend increases behind it

You don't build a record that by accident; it requires a strong model that gets executed well in both good times and bad (something worth watching)

Walmart has an attractive industry focus One of the important aspects of Walmart's is where it sits within the broader retail universe

The company has an "everyday low prices' ethos, with the goal of viding quality ducts that people can afford

During good economic times it has reliable customers that are either looking for bargains because they want to or because they have to

However, These customers tend to be fairly loyal through the economic cycle

On the other hand, During economic slowdowns, including those that dip into recession territory, Walmart attracts better-off customers

Furthermore, Essentially, better-off customers trade down to Walmart when they are looking to money

On the other hand, So when times are tough, Walmart's also tends to be fairly resilient (this bears monitoring)

Sure, the retailer misses out on wealthy customers that can afford to shop in high-end stores Tiffany all of the time, but there are far more lower- and middle-class customers than wealthy customers

And Walmart is selling basic necessities, not high-end baubles (something worth watching)

Strength through the economic cycle is a key positive that should attract investors to the stock

At the same time, Walmart is doing very well right now That backdrop brings the company's recent performance to the fore

In the first quarter of fiscal 2026, Walmart saw a top-line advance of 2, in today's financial world. 5% with adjusted earnings up 1

Walmart division, the company's largest, comparable sales rose 4. 5%, with transactions increasing by 1. 6% and the average ticket up 2, in light of current trends

Moreover, Basically, in an uncertain time customers are going to Walmart more often and spending more when they do

The company's store saw similarly strong results, in today's financial world

Market analysis shows international, meanwhile, was a slight drag because of rising costs

Nevertheless, All in, however, Walmart is executing on its plan and performing fairly well

That's a good reason to buy the stock, but it also sets up the big blem that investors have to grapple with, too

Walmart isn't going to be a great fit for everyone Walmart's stock is up over 30% over the past year

In contrast, The dividend yield is a miserly 1% or so, which is even lower than the 1

However, 2% yield on the S&P 500 index (^GSPC 0

Furthermore, The price-to-sales and price-to-earnings ratios are both above their five-year averages

Furthermore, If you are a dividend investor or have a value focus, Walmart is bably a name to keep on your wish list

That said, if you have a growth bias or are looking for a safe haven because you believe there's a larger economic storm brewing, Walmart could be a good fit (this bears monitoring)

Just go in knowing that you are paying a premium to own what is really a pretty great

If that premium doesn't bother you, then buy Walmart stock there's no tomorrow if you want (an important development).