5 Best Retail Stocks to Buy Now

3. Walmart Inc. (NYSE:WMT)

Number of Hedge Fund Holders: 68

Walmart Inc. (NYSE:WMT) is an Arkansas-based retail giant with 10,500 stores and 210 distribution centers spread across 24 countries. The company employs 2.3 million people globally.

Walmart Inc. (NYSE:WMT) has emerged as one of the best retail stocks based on the Everyday Low Prices (ELDP) philosophy. Experts believe that the market has overreacted to the development of lowering Q4 profit guidance by the company. Meanwhile, the significant reduction in long-term debt during the third quarter is a positive development for Walmart Inc. (NYSE:WMT). The company is expected to attract more mid to high-end consumers looking to save on groceries during economic uncertainty. On October 18, a report issued by Corey Tarlowe at Jefferies reported that consumer discretionary spending is very strong. The analyst increased the target price for Walmart Inc. (NYSE:WMT) from $161 to $165 and maintained a Buy rating.

Here’s what Leaven Partners said about Walmart Inc. (NYSE:WMT) in its Q3 2022 investor letter:

“In our last quarterly letter, I briefly mentioned that the consensus estimates for corporate profits appeared to be a bit too sanguine. I referenced a Reuters article that reported, as of June 17, Wall Street expected S&P 500 earnings to grow by 9.6% in 2022, which was up from 8.8% in April and from 8.4% in January. That tune began to change at the end of July and accelerated in August and September, as major players, such as Walmart (NYSE:WMT), has recently issued profit warnings and/or have withdrawn guidance. In response, Wall Street has altered its outlook: lowering third-quarter profit growth to 4.6%^[2] from 7.2% in early August and slashing full-year profit growth to 4.5%.”

Fisher Asset Management raised its stake in Walmart Inc. (NYSE:WMT) by more than 1500% during Q3 2022.