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Why Walmart (WMT) is a top long-term growth stock

It doesn’t matter how old you are or how much experience you have: making the most of the stock market’s opportunities and investing confidently are the common goals of all investors.

Achieving these goals is made easier by the Zacks Style Scores, a unique set of guidelines that rate stocks based on popular investment methodologies, namely value, growth and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which can beat the market over the long term.

Why this growth stock should be on your watchlist

Unlike value or momentum investors, growth investors are interested in a stock’s future prospects as well as the overall financial health and strength of a company. Therefore, they should focus on the Growth Style Score, which analyzes characteristics such as forecast and historical earnings, revenue and cash flow to find stocks that will experience sustainable growth over time.

Walmart (WMT)

Walmart Inc. has evolved from a traditional retailer to an omnichannel player. In this context, acquisitions, partnerships, delivery programs such as Walmart+ and Express Delivery, and investments in online e-commerce platform Flipkart are notable. These enable the company to keep pace with the changing retail ecosystem and compete against rivals such as Amazon and Target. Notably, Walmart’s product offerings include almost everything from groceries to cosmetics, electronics and stationery, home furniture, health and wellness products, and apparel and entertainment products, to name a few.

WMT has a Zacks Rank of #2 (Buy), a Growth Style Score of B, and a VGM Score of B. Earnings and sales are forecast to increase 9.5% and 4.2%, respectively, year over year.

One analyst has revised their earnings estimate for fiscal year 2025 upward in the last 60 days. The Zacks Consensus Estimate has risen from $0 to $2.43 per share. WMT has an average earnings surprise of 8.3%.

Walmart is also cash rich. The company has generated a 3.5% cash flow increase and is expected to report a 6% cash flow increase in 2025.

With solid fundamentals, a good Zacks Rank, and top-notch Growth and VGM Style Scores, WMT should be on investors’ shortlist.

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Zacks Investment Research

By Jasper

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