Election-proof Walmart is tipped to see gains amid market uncertainty

Walmart (NYSE:WMT) could catch the Barron’s bounce on Monday after making the cover of the weekend edition.

One of the key points highlighted in the piece was the steady presence of the Walton family at the retail giant. “The Walton family’s stewardship is one of Walmart’s greatest advantages, a singular symbiotic relationship that has almost no parallel in American business,” noted the publication. It was highlighted that while the Waltons are the richest family in the U.S. via their 46% stake in Walmart (WMT), they could walk down the street unrecognized in most parts of the U.S.

Barron’s said that a recent visit to Walmart’s (WMT) bustling hometown of Bentonville, Ark., and its massive new headquarters, still under construction, was indicative of a company poised for more growth. CEO Doug McMillon, who will mark his 11th-year anniversary as CEO in February, was credited with the company’s strong moves into tech through acquisitions of Bonobos, Jet.com, and Flipkart, which didn’t seem to be bearing fruit. Analysts have pointed out that Walmart’s (WMT) ability to win on convenience now has been driven by its new tech prowess, which has created a flywheel effect.

As for the U.S. election, Barron’s noted that while divisive elections will come and go, close to 36 million people will still shop at one of Walmart’s 5,205 U.S. stores or on its websites the day after the election. Walmart’s (WMT) literature says that it aspires to become a regenerative company by helping to renew people and the planet through the business, and “address societal issues in ways that create value for our business and stakeholders lies at the heart.” Barron’s said those intentions are noteworthy because some think of Walmart (WMT) as a monolithic, red-state-minded behemoth, which it isn’t.

Of course, Walmart (WMT) is the biggest U.S. company by revenue and employees, and delivered a staggering $15.5 billion in profit last year, which can make moving the meter even higher tricky. Recent articles from Seeking Alpha analysts have been split between bulls and bears. Over the last six weeks, shares of Walmart (WMT) have outperformed Costco (COST) and Target (TGT) as investors positioned themselves for the U.S. election and the holiday quarter.