From Nasdaq: 2024-04-15 07:45:00

Inflation is rising, which could lead to higher interest rates, impacting the economy. Walmart (NYSE: WMT) is a safe bet for defensive investors with solid performance. Despite a 20% increase in the stock over 12 months, Walmart’s strong consumer base and $648 billion in sales make it a competitive force.

However, Walmart’s size can be a double-edged sword. While the company continues to grow, its valuation is high at nearly 26 times estimated earnings. The Price/Earnings-to-Growth ratio stands at 3.8, indicating overvaluation. Investing in Walmart now may not yield satisfactory returns, making it important for investors to consider other options like Amazon.

Before investing $1,000 in Walmart, bear in mind that it may not be the best choice according to The Motley Fool’s Stock Advisor analyst team. They identified 10 better stocks for potential high returns. The Stock Advisor service offers guidance on portfolio building and stock picks, outperforming the S&P 500 by tripling returns since 2002. John Mackey, former CEO of Whole Foods Market, and an Amazon subsidiary, is a member of The Motley Fool’s board of directors.



Read more at Nasdaq: Is It Too Late to Buy Walmart Stock?