Analyst Dana Telsey believes Walmart Inc (NYSE:WMT) is benefiting from tariffs as consumers seek lower prices, especially during the holiday season. WMT’s revenue is growing faster than the sector median, with a net margin increase from 2.37% to 3.08% (TTM). However, the stock trades at a forward P/E of 39.54, 65% above the S&P 500 average.

Although Walmart (WMT) shows potential for investment, some AI stocks may offer higher returns with less downside risk. For those interested in an AI stock that benefits from Trump tariffs and onshoring, check out the free report on the best short-term AI stock.

Analysts suggest that companies like WMT could benefit from sticky inflation and joblessness in the labor market. WMT’s net margin has increased to 3.08% (TTM), exceeding the sector median at a forward P/E of 39.54. Despite its growth, some AI stocks may offer better returns with limited downside risk.

Read more at Yahoo Finance: Analyst Explains How Walmart (WMT) is Benefiting From Tariffs