Retail powerhouse Walmart (NYSE:WMT) is widely known for its affordable products and everyday essential offerings. With 50 consecutive years of dividend increases under its belt, the company has also built a reputation as a reliable dividend player, solidifying its place as a Dividend Aristocrat. Apart from offering a steady income stream, WMT is currently loved by Wall Street analysts, as it sports a Strong Buy consensus rating.
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Reasons to Love WMT Stock
Walmart’s strong core retail business, coupled with the company’s strategic investments in e-commerce and digital platforms, is opening up new avenues for growth. This diversification is expected to further strengthen Walmart’s financial position and potentially support dividend growth going forward.
Furthermore, the company has been setting up Walmart Health locations with the aim of providing low-cost healthcare services to its customers. With most of the Walmart stores located in prime locations, this expansion may help the company benefit from a huge growth opportunity in the healthcare sector.
According to WMT’s recent earnings report, the company delivered better-than-expected third-quarter results. The company’s U.S. comparable sales rose by 4.9%, and e-commerce sales jumped by 24% on the back of strength in pickup and delivery. Buoyed by strong Q3 and holiday momentum, WMT raised Fiscal 2024 sales expectations to 5% to 5.5% for Fiscal Year 2024 from the earlier guidance of 4% to 4.5%.
It is worth highlighting that hedge funds are also optimistic about Walmart, as they bought 579,900 shares of WMT stock last quarter. Overall, Walmart has a Very Positive Hedge Fund Confidence Signal at present.
Is it Good to Buy Walmart Stock?
Walmart has received 25 Buys and five Hold recommendations for a Strong Buy consensus rating. Further, WMT stock’s 12-month average price target of $180.79 implies 18.58% upside potential from current levels.
The Takeaway
Strong growth prospects, an impressive dividend growth history, and sound financial positions make WMT an attractive choice for those seeking consistent income. Additionally, the positive sentiment from analysts and hedge funds adds to the overall confidence in the stock.
