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Why Walmart (WMT) is a strong growth stock


Why Walmart (WMT) is a strong 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.

Many investors also have a tried-and-true method that helps them make their buying and selling decisions. One way to find winning stocks based on your preferred investment method is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely used investment types: value, growth and momentum.

Why this growth stock should be on your watchlist

Growth investors build their portfolios around companies that are financially strong and have a promising future ahead of them. The Growth Style Score helps consider forecast and historical earnings, revenue and cash flow to find stocks that will experience long-term, sustainable growth.

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 3 (Hold), a Growth Style Score of A and a VGM Score of B. Earnings and revenue are expected to increase 9.9% and 4.7%, respectively, year over year.

Nine analysts have revised their earnings estimates for fiscal year 2025 upward in the past 60 days, while the Zacks consensus estimate increased by $0.01 to $2.44 per share. WMT also has an average earnings surprise of 6.9%.

Walmart has historically achieved cash flow growth of 3.5% and is expected to report cash flow growth of 6% this year.

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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