Walmart – a household name that few need introduced – continues to prove itself as one of the most compelling long-term equity plays.
Since Sam Walton opened the first store in 1962, Walmart has stayed true to its core promise: offering everyday goods at low prices.
Over time, that simple value proposition has translated into market dominance and investor rewards.
Over the past decade, Walmart’s total returns have averaged 20.5 % annually, comfortably outperforming the S&P 500’s 14.8 % average.
Through mid-October 2025, WMT is up roughly 19 % year-to-date versus ~13 % for the S&P 500.
That strong relative performance underscores investor confidence in Walmart’s strategy.
Beyond Brick-and-Mortar: The Omnichannel Transformation
A key reason to bet on Walmart is its ability to evolve. While Amazon once seemed to threaten Walmart’s business model, Walmart has responded by investing heavily in e-commerce, logistics, and tech integration.
In its fiscal Q2 ended July 31, total revenue rose 4.8 % year over year to $177.4 billion, but U.S. e-commerce sales jumped ~26 %, and international e-commerce grew ~22 %.
That shows the digital channel is becoming a progressively larger piece of the puzzle.What gives Walmart an edge is its physical footprint.
With thousands of stores nationwide, Walmart can convert them into fulfillment or pickup hubs, enabling customers to get their orders faster.
The company claims it can reach roughly 93 % of U.S. households with same-day delivery – a hybrid advantage Amazon can’t fully replicate.
Lately, Walmart has been grabbing headlines with bold moves:
- ChatGPT Shopping Integration: In October 2025, Walmart announced a partnership with OpenAI to allow consumers to shop directly through ChatGPT using Instant Checkout. This integration sends a strong signal that Walmart aims to be at the forefront of AI-driven commerce and the stock popped ~3–5 % after the news.
- Stock at Record Highs: Following the AI announcement, Walmart shares hit record levels, climbing over 20 % year-to-date.
- Consumer Resilience: At a recent forum, the U.S. Walmart CEO noted that shoppers are still spending “at a healthy rate,” despite macroeconomic headwinds.
- Margin Pressure & Earnings Miss: However, the path is not entirely smooth. In Q2, Walmart missed profit expectations, largely due to rising import costs and tariffs squeezing margins. It reported an adjusted EPS of $0.68 versus ~$0.73 expected. Management has raised full-year sales guidance, though earnings guidance remains under close scrutiny.
- Automation & Robotics: Walmart is also pushing into supply-chain automation. In 2025, it expanded its partnership with Symbotic, selling its robotics business to Symbotic and investing in a new robotics platform to speed in-store pickups and last-mile fulfillment.
From a valuation and technical perspective, analysts remain mostly bullish. For example, Walmart recently traded ~US $107.73.
Analysts see room to grow: Morgan Stanley has floated a possible long-term target of $150. Others caution that high expectations and margin headwinds may curb near-term upside.
Also See: The One ETF You Can Buy Today and Hold Forever – No Matter What the Market Does
Bottom Line: One Big Reason to Buy
If I had to name one reason to buy Walmart stock aggressively, it would be this: Walmart is converting its massive scale and retail moat into a next-generation, AI-enabled, omnichannel powerhouse.
The company is not just defending its legacy business – it is actively reshaping it for the future.
Its strong dividend track record, consistent free cash flow, and recent technological initiatives provide both a buffer and optionality.
Yes, margin pressure and macro risks remain real. But in a world that rewards agility, Walmart’s hybrid model, physical infrastructure, and latest AI partnership may well make it one of the safest “growth + stability” bets out there.
