Is WMT a good stock to buy? We came across a bullish thesis on Walmart Inc. on Trevor Young’s Substack. In this article, we will summarize the bulls’ thesis on WMT. Walmart Inc.’s share was trading at $127.92 as of April 20th. WMT’s trailing and forward P/E were 46.86 and 43.29 respectively according to Yahoo Finance.
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Walmart Inc. engages in the operation of retail and wholesale stores and clubs, ecommerce websites, and mobile applications worldwide. WMT stands out as a cornerstone of stability in today’s fast-evolving market, combining defensive characteristics with selective adoption of disruptive technologies.
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As of this month, Walmart has officially joined the $1 trillion market cap club, underscoring its scale and resilience. For risk-averse investors, Walmart offers a reliable anchor: its stores generate consistent traffic regardless of economic cycles, making it a dependable choice in both expansionary and recessionary environments.
The company has increased its dividend for 52 consecutive years, earning its status as a “Dividend King,” and currently pays a 0.7% yield with a payout ratio around 32%, reflecting ample room to sustain or grow distributions. Walmart’s stock has appreciated roughly sixfold over the past decade, translating to an approximate 18% annualized return, further enhancing its appeal as a long-term holding.
Despite its traditional “brick-and-mortar” roots, Walmart is actively integrating innovative technologies to remain competitive. Its e-commerce business expanded nearly 30% last year, while AI-powered instant checkout, leveraging Google’s Gemini, demonstrates how the company is selectively adopting transformative tech to enhance customer experience and operational efficiency.
Walmart maintains a strong balance sheet and operational performance, with an average return on equity of 18% from 2021–2025, currently around 23%, highlighting its efficiency in deploying capital profitably. Overall, Walmart combines the reliability of a defensive, cash-generating business with targeted technological adoption, providing investors with both income stability and growth potential. Its track record, scale, and strategic use of innovation make it a compelling investment for those seeking low-risk exposure to a resilient consumer retail leader.
Previously, we covered a bullish thesis on Target Corporation (TGT) by LongYield in May 2025, which highlighted TGT’s digital momentum, cost control, and long-term strategy despite Q1 sales and EPS weakness. TGT’s stock price has appreciated by approximately 38.06% since our coverage. Trevor Young shares a similar view but emphasizes Walmart’s defensive characteristics, dividend consistency, and selective adoption of AI-powered checkout and e-commerce growth.
Walmart Inc. is on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 114 hedge fund portfolios held WMT at the end of the fourth quarter which was 104 in the previous quarter. While we acknowledge the risk and potential of WMT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than WMT and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
