7 Stocks to Buy if Inflation Remains Higher for Longer - 1 of 7

Walmart Inc. (NYSE: WMT) stock has delivered an average total return of 30.67% during the five-year period of 2020 through 2024. That’s more than double the 14.87% total return of the S&P 500 over the same period. The retail giant has shown that it can continue to grow revenue and earnings despite its core consumers dealing with generationally high inflation and interest rates. 

Past performance isn’t always indicative of future results. But there’s plenty of evidence to suggest that Walmart will continue to be one of the retail stocks to outperform the market. In 2024, the company noted that it was capturing the dollars of higher-income consumers who were looking for value. This was particularly important as the company reported that its core consumer is spending the same amount but buying fewer items, particularly discretionary items. 

Walmart is also becoming a significant e-commerce player—it reported a 27% increase in e-commerce revenue in its most recent quarter. The company is also becoming a free cash flow machine while still rewarding investors with a dividend that has been growing for 52 consecutive years. 

At 38x forward earnings, WMT stock isn’t cheap. But with plans in place to grow or remodel over 150 stores in addition to acquisitions to grow its advertising business, Walmart is well positioned for future growth.