5 Most Undervalued Retail Stocks to Buy According to Hedge Funds

3. Walmart Inc. (NYSE:WMT)

Number of Hedge Fund Holders: 68
P/E Ratio as of January 23: 43.89x

Return since January 23: 11.5%

Walmart Inc. (NYSE:WMT) is an American multinational retail corporation. The company operates a chain of hypermarkets, discount department stores, and grocery stores in the US.

Walmart Inc. (NYSE:WMT) has released its results for Q3 2023. It saw strong revenue growth globally, with particular strength in Walmart U.S., Sam’s Club U.S., Flipkart, and Walmex. Its total revenue came in at $152.8 billion, exhibiting 8.7% growth, or 9.8% in constant currency. The company’s global advertising business saw over 30% growth as a result of 40% at Walmart Connect in the U.S. and strength in Flipkart Ads.

Walmart Inc. (NYSE:WMT) has raised its full-year outlook as a result of strong Q3 2022 performance. The company expects consolidated net sales growth of approximately 5.5% year over year. Excluding divestitures, its anticipates achieving consolidated net sales growth of around 6.5% against the previous year. It expects Walmart U.S. comp sales growth, excluding fuel, of around 5.5% year-over-year.

Analysts at UBS Group assumed the coverage on the shares of Walmart Inc. (NYSE:WMT) and they reduced their price objective on the company’s shares from $170.00 to $168.00. They gave a “Buy” rating on the stock on January 6.

As of the end of the third quarter, 68 hedge funds, out of 920 funds tracked by Insider Monkey, reported having stakes in Walmart Inc. (NYSE:WMT).

Leaven Partners, an investment management firm, published its investor letter for Q3 2022 and mentioned Walmart Inc. (NYSE:WMT). Here is what the fund has to say:

“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in August and September, as major players, such as Walmart (NYSE:WMT), has recently issued profit warnings and/or have withdrawn guidance.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%.”