5 High Quality Stocks to Buy According to Hedge Funds

2. Walmart Inc. (NASDAQ:WMT)

Number of Hedge Fund Holders: 114

On May 22, BofA lowered its price target on Walmart Inc. (NASDAQ:WMT) to $144 from $150. It reiterated a Buy rating on the shares. The firm said it reduced its valuation multiple after earnings because of a more challenging consumer environment. Even so, BofA believes Walmart could continue gaining market share as consumers become more price-conscious. The firm said that trend “should drive a return to a beat/raise cycle assuming the freight environment doesn’t worsen.”

On May 15, Piper Sandler analyst Peter Keith raised the firm’s price target on WMT to $137 from $130 and maintained an Overweight rating on the stock. The firm said investors have become concerned about consumer discretionary spending because of higher gas prices, though consumer spending has remained resilient. Piper Sandler also noted that tax refunds stood out during Q1, but there has been no clear sign that those funds significantly boosted retail spending. According to the firm, middle- and upper-income consumers likely chose to save that money instead. For the home improvement sector, the firm said the sluggish trends seen in Q4 appeared to continue into the latest quarter.

Walmart Inc. (NASDAQ:WMT) is a technology-powered omnichannel retailer that operates retail and wholesale stores, clubs, eCommerce websites, and mobile applications across the U.S., Africa, Canada, Central America, Chile, China, India, and Mexico.