Walmart Inc. (WMT): A Bull Case Theory

We came across a bullish thesis on Walmart Inc. on Quality Value Investing’s Substack by David J. Waldron. In this article, we will summarize the bulls’ thesis on WMT. Walmart Inc.'s share was trading at $127.71  as of February 3rd. WMT’s trailing and forward P/E were 41.66 and 39.22, respectively according to Yahoo Finance.

Walmat Inc. operates one of the world’s largest retail and e-commerce platforms through Walmart U.S., Walmart International, and Sam’s Club, spanning supercenters, discount stores, warehouse clubs, and a broad digital ecosystem that includes Flipkart, PhonePe, and multiple regional online marketplaces. Founded in 1945 and headquartered in Bentonville, Arkansas, Walmart has evolved into a global retail institution with unmatched scale.

Morningstar assigns Walmart a “wide” economic moat, citing its industry-leading cost structure, powerful brand, and operational discipline. These advantages are reinforced by continuous investment in technology and infrastructure, allowing Walmart to defend its competitive position despite intense industry pressure. QVI echoes this view, rating Walmart’s competitive advantage as Bullish and framing the company as an enduring, if sometimes polarizing, American institution.

From a financial perspective, Walmart’s growth profile reflects the realities of big-box retail. Over the past five years, revenue growth has been in the mid-single digits, trailing the faster-growing S&P 500, while recent 12-month growth of 4.3% also lagged the broader market. Profitability remains modest, with low-single-digit net margins typical of the sector, well below the S&P 500’s margin profile.

However, management continues to generate double-digit returns on equity and a return on invested capital that exceeds its cost of capital, underscoring disciplined capital allocation. While share repurchases have slowed and owners’ earnings growth has been only minimally acceptable, Walmart’s consistent cash generation, dividends, and durable moat support QVI’s Bullish assessment of its business fundamentals and long-term wealth-creation potential.

Previously, we covered a bullish thesis on Target Corporation (TGT) by LongYield in May 2025, which highlighted digital sales growth, market share gains, disciplined capital returns, and a potential recovery despite macro pressures. TGT’s stock price has appreciated by approximately 18.04% since our coverage. David J. Waldron shares a similar view but emphasizes Walmart’s scale-driven moat, capital discipline, and long-term durability.

Walmart Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 104 hedge fund portfolios held WMT at the end of the third quarter which was 105 in the previous quarter. While we acknowledge the risk and potential of WMT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than WMT and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.