Is Walmart Inc. (WMT) the Best Dow Stock?

We recently published a list of The Best and Worst Dow Stocks. In this article, we are going to take a look at where Walmart Inc. (NYSE:WMT) stands against other Dow stocks.

The Dow Jones Industrial Average is a benchmark index of the top 30 companies in the US. It represents the strength of the US economy and carries great historical significance as well.

It also acts as a reference point for analysts and investors. However, not all stocks within this elite group of companies perform equally. While some thrive on innovation and economic boom, others struggle due to various setbacks and economic trends.

We decided to break down the index and find out the best and worst stocks, looking at what was making them perform unexpectedly this year.

Methodology

In order to come up with our ranking of the best and worst Dow stocks, we first assigned a rank to each stock based on the number of hedge funds holding the stock. We then looked at the short interest in each stock and assigned the top rank to the company with the least short interest.

We then combined the two ranks to see which stock was the best on average. The list is in ascending order, with the best stock taking the number one spot.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Walmart Inc. (NYSE:WMT)

Number of Hedge Fund Holders: 116

Short Interest as of Apr 30, 2025: 1.07%

Walmart Inc. (NYSE:WMT) operates wholesale and retail stores and clubs, mobile applications, and e-commerce websites. It generates its revenue through Walmart International, Sam’s Club, and Walmart U.S. segments. The company operates supermarkets, cash and carry stores, supercenters, discount stores, and warehouse clubs.

As per the firm’s provided guidance, it anticipates revenue growth of 3% to 4%. The retail giant reaffirmed its guidance in the recently held Investment Community Meeting. It plans to boost growth by enhancing customer and member experiences.

Walmart Chief Financial Officer John David Rainey wrote:

“History tells us that when we lean into these periods of uncertainty, Walmart emerges on the other side with greater share and a stronger business.”

However, the CFO highlighted declining consumer sentiment and uncertainty around tariffs as some negative catalysts for sales growth in the future. He also pointed out that the e-commerce segment will deliver profitability for the first time during the quarter. The company’s excellent historical performance makes it stand out despite tariff concerns.

Overall, WMT ranks 7th on our list of best and worst Dow stocks. While we acknowledge the 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. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than WMT but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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