Walmart Inc. (WMT): A Bull Case Theory

We came across a bullish thesis on Walmart Inc. on Kroker Equity Research’s Substack. In this article, we will summarize the bulls’ thesis on WMT. Walmart Inc.'s share was trading at $109.10 as of November 26th. WMT’s trailing and forward P/E were 37.41 and 35.21 respectively according to Yahoo Finance.

Walmart Inc. engages in the operation of retail and wholesale stores and clubs, eCommerce websites, and mobile applications worldwide. WMT is undergoing a profound transformation, evolving from a traditional retailer into a digitally enabled, margin-expanding platform. While historically viewed as steady and reliable, the company’s current valuation multiples—P/E of 36–37× and EV/EBIT of ~27×—are 35–40% above decade-long averages, reflecting investor expectations for faster profit growth, higher margins, and a hybrid business model combining elements of Amazon, Costco, and Kroger. This premium is justified only if Walmart successfully executes its strategic initiatives, as any slip in execution could lead to a significant multiple contraction.

At the core of Walmart’s strategy is a sophisticated omnichannel approach that leverages 4,700+ stores as mini-fulfillment centers, enabling same-day delivery, grocery pickup, and a scalable e-commerce ecosystem. Complementing this are higher-margin profit streams, including Walmart Connect advertising, marketplace seller fees, and Walmart+ memberships, which could collectively account for over 20% of operating income in the near future. Aggressive automation across fulfillment and distribution centers aims to reduce costs by 20% while enhancing operational efficiency, and international e-commerce expansion through platforms like Flipkart is positioned to double digital revenue by 2028.

The online business is the true engine of Walmart’s valuation. As the #2 U.S. e-commerce player, Walmart leverages its grocery dominance, store-enabled last-mile delivery, and a growing marketplace flywheel to expand customer engagement and high-margin digital revenue. Retail media, with Amazon-like margins, further amplifies profit potential.

While the stock offers significant upside if execution succeeds, the market is pricing in flawless performance; any delays in automation, marketplace growth, or digital adoption could trigger a notable re-rating. Overall, Walmart is no longer just a retailer—it is an omnichannel, data-driven platform with high-margin optionality, and its transformation is increasingly reflected in its valuation.

Previously, we covered a bullish thesis on Target Corporation (TGT) by LongYield in May 2025, which highlighted the company’s strong omnichannel execution, digital momentum, and capital deployment despite near-term sales pressure. The company's stock price has depreciated by approximately 4.76% since our coverage due to macroeconomic headwinds and elevated inventory. Kroker Equity Research shares a similar bullish view but emphasizes Walmart’s high-margin, digitally enabled platform transformation.

Walmart Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 105 hedge fund portfolios held WMT at the end of the second quarter which was 100 in the previous quarter. 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.

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Disclosure: None.