Here’s Why Walmart Continues to Crush the S&P 500 (and if the Dividend Stock Is a Buy Now)

From Yahoo Finance: 2025-05-24 11:27:00

Walmart’s stock soared 71.9% last year, outperforming the S&P 500 and Dow Jones. The retail giant’s 6.7% year-to-date gain surpasses the S&P 500’s 2.1% decline. Walmart excels in in-store, e-commerce, and home delivery, resonating with cost-conscious consumers. E-commerce sales grew by 22%, showing Walmart’s resilience in a challenging environment.

Walmart’s focus on value and efficiency has helped it thrive amid declining foot traffic and cost pressures in the retail sector. The company’s e-commerce growth, especially in the U.S., showcases its ability to adapt to changing consumer preferences. Walmart’s emphasis on price competitiveness and expanding delivery options have been key to its success.

While Walmart faces challenges in diversifying its business and competing with online giants like Amazon, its recent improvements in e-commerce profitability and revenue growth have been impressive. Despite a slowdown in growth rate, Walmart’s stock is trading at high valuations, cautioning potential investors to consider other options with higher yields.

Investors should weigh Walmart’s strong performance against its valuation and growth prospects. While the company continues to innovate and expand its e-commerce capabilities, its stock may be overextended. Consider other growth stocks with better valuation or reliable value stocks for a more balanced investment strategy.



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