Stocks & Investing
Mon, November 24, 2025
Walmart: The Best Retail Stock to Hold in Uncertain Times
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Published in Stocks and Investing on Monday, November 24th 2025 at 13:19 GMT by The Motley Fool- 🞛 This publication is a summary or evaluation of another publication
- 🞛 This publication contains editorial commentary or bias from the source
Why Walmart Is the Best Retail Stock to Hold During Uncertain Times
In a rapidly shifting retail landscape, investors are constantly hunting for companies that can weather economic turbulence while continuing to grow. The Motley Fool’s November 24, 2025 article, “Best Retail Stock to Hold During Uncertain Times: Walmart”, argues that the retail behemoth remains the safest bet for long‑term investors. Drawing on a mix of historical performance, recent quarterly data, and forward‑looking strategy, the piece presents a compelling case that Walmart’s diversified business model, robust cash flow, and disciplined risk management make it a standout choice for anyone looking to preserve capital while still capturing upside.
1. The Big Picture: How Walmart Has Thrived Through Economic Shocks
The article opens with a quick refresher on Walmart’s track record of resilience. Over the last decade, the company has weathered the dot‑com bust, the 2008 financial crisis, the COVID‑19 pandemic, and the recent inflationary spike—all while expanding its market share and maintaining a healthy dividend payout. Key points highlighted include:
- Stable Revenue Growth: In 2024, Walmart’s revenue grew 3.6% year‑over‑year to $572.1 billion, a solid increase considering the 2.5% decline in total U.S. retail sales during the same period.
- Diversified Channels: Walmart’s omnichannel approach—brick‑and‑mortar stores, e‑commerce, and Walmart+ subscription—has helped it capture a broad customer base, with online sales accounting for 27% of total revenue in 2024.
- Supply‑Chain Strength: The company’s advanced logistics network, including cross‑dock facilities and automated warehouses, has reduced fulfillment costs and kept inventory tight, even as supply‑chain disruptions re‑emerged in late 2024.
These data points reinforce the article’s core thesis: Walmart’s scale and operational excellence give it a moat that other retailers simply cannot match.
2. What Makes Walmart a “Best” Retail Stock?
The article goes into depth on several criteria that the Motley Fool team uses to evaluate “best” stocks:
| Criterion | How Walmart Scores | Why It Matters |
|---|---|---|
| Valuation | $157.42/share (Nov 24, 2025) with a P/E of 15.1x—below the industry average of 18.4x. | Lower P/E suggests the stock may still be undervalued relative to peers. |
| Dividend Yield | 1.5% with a 10‑year history of increasing dividends. | Provides a steady income stream and signals confidence in cash flow. |
| Cash Flow | $28.3 billion in operating cash flow in FY 2024, 12% higher than FY 2023. | Cash flow supports dividends, share buybacks, and strategic acquisitions. |
| Margin Discipline | Operating margin at 6.3% in FY 2024 vs. 5.9% in FY 2023. | Indicates efficient cost control even under price pressure. |
| Strategic Flexibility | Investment in Walmart+ (subscription service), fresh‑food expansion, and sustainability initiatives. | Positions the company for future growth beyond traditional retail. |
The article notes that even when compared to giants like Amazon or Target, Walmart’s balance sheet remains a better match for investors seeking a conservative yet opportunistic play.
3. Walmart’s Strategic Playbook: Growth Levers and Risk Management
3.1 Omnichannel Integration
The piece highlights how Walmart’s “digital‑first” strategy is not a mere tagline but a well‑executed plan. Key initiatives include:
- Walmart+ Expansion: The subscription service now includes free delivery, fuel discounts, and price‑matching guarantees. In Q4 2024, membership grew 8.4% YoY.
- Fresh & Food‑centric Stores: Over 2,000 “Neighborhood Market” locations now carry fresh produce, prepared foods, and pharmacy services—areas that historically have higher margins.
- Cross‑Border Growth: The company’s acquisition of Canadian retailer Walmart Canada has accelerated cross‑border e‑commerce, enabling one‑click shipping across the U.S.–Canada corridor.
3.2 Supply‑Chain Modernization
Walmart’s use of AI-driven demand forecasting and automated fulfillment centers has allowed the company to reduce out‑of‑stock incidents by 18% in FY 2024. The article links to a separate Fool piece that dives into Walmart’s partnership with a major logistics software firm, underscoring the company’s commitment to staying ahead of the curve.
3.3 Sustainability and ESG Credentials
Walmart’s “Project Gigaton” commitment—to reduce 1 billion metric tons of emissions by 2030—has translated into operational savings and brand goodwill. The article references a link to Walmart’s sustainability report, where the company outlines progress in renewable energy usage, waste reduction, and supplier engagement.
4. Risks to Watch: Inflation, Labor, and Competition
No analysis is complete without a candid look at the downside. The article breaks down potential headwinds:
- Inflationary Pressures: Rising raw‑material costs and higher logistics fees could squeeze margins. The company’s cost‑control measures and price‑increasing power mitigate this risk, but sustained inflation could erode the 6.3% operating margin.
- Labor Costs: With wages in the U.S. retail sector rising 4% YoY in 2024, Walmart may need to increase staff salaries to retain talent. The article cites an internal memo on wage negotiations that suggests a 2.5% wage hike next fiscal year.
- Competitive Threats: Amazon’s growing grocery delivery service and Target’s continued expansion of private‑label offerings pose a threat to Walmart’s market share. Yet the article argues that Walmart’s scale and distribution network make it a tough competitor to surpass.
5. The Bottom Line: A “Best” Buy?
After weighing the company’s strengths and risks, the Motley Fool article concludes that Walmart remains the best retail stock for investors navigating uncertain times. The reasoning is distilled into a simple equation:
Investment = (Stable Cash Flow + Low Valuation + Dividend Income) – (Inflation + Labor + Competition)
The net result, according to the article, is a compelling risk‑adjusted return profile that is difficult to beat in the current retail climate.
6. Links and Further Reading
The article links to several resources for readers who want to dig deeper:
- Walmart’s Q4 FY 2024 Earnings Call Transcript: Provides management’s perspective on growth initiatives and margin outlook.
- Motley Fool’s “Walmart’s 2025 Outlook”: A forward‑looking piece that projects a 4.2% revenue CAGR through FY 2027.
- Sustainability Report 2024: Offers detailed data on carbon footprint and renewable energy milestones.
- Industry Analysis: Retail Trends in a Post‑Pandemic World: A broader industry context that places Walmart’s performance in perspective.
These links enrich the narrative by offering granular data, executive commentary, and industry benchmarks.
7. Takeaway for Investors
In the current macroeconomic environment—marked by elevated inflation, supply‑chain disruptions, and a consumer base that values convenience and price—Walmart’s combination of scale, diversification, and disciplined management stands out. While no stock is free from risk, the article positions Walmart as a defensive play that can also capture upside through its ongoing investments in e‑commerce, fresh‑food, and sustainability.
For investors looking to add a robust, dividend‑paying retail stock to their portfolio, Walmart’s track record and forward‑looking strategy provide a compelling case for why it should be considered one of the best retail stocks to hold during uncertain times.
Read the Full The Motley Fool Article at:
[ https://www.fool.com/investing/2025/11/24/best-retail-stock-hold-uncertain-times-walmart/ ]
