From Yahoo Finance: 2025-04-06 19:05:00

In a recent article, Insider Monkey listed the 11 Best Counter Cyclical Stocks to Buy According to Analysts. Walmart Inc. (WMT) is highlighted as one of the top picks in this category. Counter cyclical stocks, like Walmart, tend to perform well during economic downturns, offering stability and potential growth during volatile market conditions. Financial theory supports the inclusion of counter cyclical stocks in portfolios to reduce volatility and improve risk-adjusted returns. Empirical studies show that these stocks exhibit lower volatility and more stable returns during recessionary periods, making them attractive to investors seeking refuge during market downturns. Business surveys and research indicate a potential recession in 2025, highlighting the importance of considering counter cyclical stocks in investment strategies. Walmart Inc. (WMT) is a multinational retail corporation operating hypermarkets, discount stores, and grocery stores across the US and internationally. The company’s broad assortment of merchandise and services at everyday low prices makes it an appealing option for budget-conscious consumers during economic downturns. Walmart’s strong financial performance, including sales growth, market share gains, and e-commerce expansion, positions it as a top counter cyclical stock to consider for potential recessions. Additionally, the company’s dividend hike, return on investment improvement, and projected sales and income growth for fiscal 2026 further solidify its position as a promising investment opportunity. While Walmart ranks as the best counter cyclical stock according to analysts, the potential for higher returns in a shorter time frame lies in AI stocks. Investors looking for promising AI stocks with significant upside potential may find more attractive opportunities than WMT in this sector.

Read more: Is Walmart Inc. (WMT) the Best Counter Cyclical Stock to Buy According to Analysts?