Is WMT a good stock to buy? We came across a bullish thesis on Walmart Inc. on LongYield’s Substack. In this article, we will summarize the bulls’ thesis on WMT. Walmart Inc.’s share was trading at $115.75 as of May 29th. WMT’s trailing and forward P/E were 40.76 and 39.68 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 continues to reinforce its position as one of the strongest and most resilient businesses in the U.S. economy, with its first-quarter FY2027 results highlighting both operational strength and the growing value of its higher-margin revenue streams.
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The company reported revenue of $177.8 billion, surpassing expectations by nearly $3 billion, while net income increased 18.8% year-over-year to $5.33 billion. U.S. comparable sales rose 4.1%, supported by the strongest transaction growth in six quarters, and global e-commerce expanded 26%, marking another year of sustained digital momentum.
While elevated fuel costs and looming tariff-related price increases pressured investor sentiment and drove a short-term share price decline, Walmart’s results demonstrated continued market share gains across income levels, particularly among higher-income households, underscoring the strength of its value proposition and improving customer experience. The company is also evolving beyond traditional retail, with advertising and membership income now contributing roughly one-third of total earnings.
Walmart Connect delivered 44% U.S. advertising growth, while Walmart+ membership income increased 27%, creating a rapidly expanding ecosystem of high-margin recurring revenue. Additionally, Walmart’s Scintilla data platform provides a long-term monetization opportunity through supplier analytics and AI-driven consumer insights. Although tariffs may create near-term pressure on discretionary spending, Walmart’s scale, private-label portfolio, and pricing advantages position it to navigate a challenging environment better than competitors.
The investment thesis centers on Walmart’s transformation from a low-margin retailer into a diversified platform combining retail, advertising, memberships, data, and e-commerce. As these higher-margin businesses become a larger portion of earnings, Walmart has the potential to achieve a higher valuation multiple while continuing to generate durable growth and market share gains.
Previously, we covered a bullish thesis on Target Corporation (TGT) by LongYield in May 2025, which highlighted the company’s digital momentum, omnichannel capabilities, market share gains, and long-term recovery potential despite consumer spending and tariff-related headwinds. TGT’s stock price has appreciated by approximately 34.76% since our coverage. LongYield’s Substack shares a similar view but emphasizes Walmart’s transformation into a higher-margin platform powered by advertising, memberships, data monetization, and e-commerce growth.
Walmart Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 99 hedge fund portfolios held WMT at the end of the first quarter which was 114 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.
