Is it a Wise Move to Invest in Walmart Inc. (WMT)?

Parnassus Investments, an investment management firm that focuses on owning a concentrated portfolio of U.S. large cap stocks, released its Parnassus Value Equity Fund second-quarter 2025 investor letter. The full letter is available for download here. For the second quarter of 2025, the fund reported a net return of 7.24%, outperforming its benchmark, the Russell 1000 Value Index, which returned 3.79% for the same period. The fund’s top 5 holdings are also listed in the letter, showing the firm’s main investment positions heading into 2025.

One of the companies mentioned in the letter is Walmart Inc. (NYSE:WMT). Walmart Inc. (NYSE:WMT) engages in the operation of retail and wholesale stores and clubs, eCommerce websites, and mobile applications. Over the past month, Walmart Inc. (NYSE:WMT) rose by 8.90%, and its shares gained 50.92% of their value over the last 12 months. On August 12, 2025, Walmart Inc. (NYSE:WMT) shares closed at $103.62, with a market capitalization of $826.93 billion.

Here is what they have to say about Walmart Inc. (NYSE:WMT) in their investor letter:

"In addition to being a leading traditional brick-and-mortar retailer, Walmart Inc. (NYSE:WMT) is an omnichannel/e-commerce leader, driven by significant digital investments that unlocked alternative business streams such as advertising, membership, fulfillment, data and marketplace services that help to fortify and grow margins in the longer term. The company’s market share has grown and is expected to continue rising as it maintains competitive pricing and increases e-commerce penetration. Despite exposure to tariff and macroeconomic risks, Walmart’s unparalleled scale provides significant leverage in price negotiations with vendors and suppliers, thereby reinforcing its value proposition."

Walmart Inc. (NYSE:WMT) is not included in our list of the 30 most popular stocks among hedge funds. According to our data, 100 hedge fund portfolios held positions in Walmart Inc. (NYSE:WMT) at the end of the first quarter of 2025, down from 116 in the previous quarter. WMT surpassed earnings expectations, posting an EPS of $0.61 compared to the forecast of $0.575. While we acknowledge the potential of WMT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Walmart Inc. (NYSE:WMT) and Jim Cramer’s views on the company. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.