Retail giant Walmart (New York Stock Exchange:WMT) is widely known for its affordable products and everyday essentials. The company has continued its 50th consecutive year of increasing dividends and has also built a reputation as a reliable dividend company, solidifying its status as a Dividend Aristocrat. In addition to providing a steady stream of income, WMT is currently a favorite among Wall Street analysts as it has a consensus rating of Strong Buy.
Why we love WMT stock
Walmart’s strong core retail business, combined with strategic investments in e-commerce and digital platforms, is opening up new avenues of growth. We expect this diversification to further strengthen Walmart’s financial position and potentially support future dividend growth.
Additionally, the company is opening Walmart Health locations with the goal of providing low-cost healthcare services to customers. Most of Walmart’s stores are located in prime locations, so this expansion could allow the company to benefit from significant growth opportunities in the healthcare sector.
According to WMT’s recent earnings report, the company beat expectations in the third quarter. The company’s U.S. comparable sales rose 4.9%, and e-commerce sales rose 24% on the back of strong pick-up and delivery. Buoyed by strong momentum in the third quarter and holiday season, WMT raised its fiscal 2024 revenue forecast to 5% to 5.5% from its previous outlook of 4% to 4.5%.
It’s worth highlighting that hedge funds are also optimistic about Walmart, as they purchased 579,900 shares of WMT stock in the last quarter. Overall, Walmart has very positive hedge fund confidence signals at the moment.
Is it good to buy Walmart stock?
Walmart has a consensus rating of Strong Buy with 25 Buy recommendations and 5 Hold recommendations. Furthermore, WMT stock’s 12-month average price target of $180.79 suggests an upside potential of 18.58% from current levels.
Take-out
WMT’s strong growth outlook, impressive dividend growth history, and sound financial position make it an attractive option for those seeking stable income. Additionally, positive sentiment from analysts and hedge funds is boosting overall confidence in the stock.
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