Walmart: A Lower Risk Play During Market Uncertainty


  • Walmart is an excellent situational stock to hold during market uncertainty because of its very reliable cash flows.
  • Walmart has significantly out-performed the S&P500 index over the last year but longer term the stock has marginally under-performed the market.
  • Management has been “cleaning house” over the last couple of years as it has sold off poorly performing international investments.
  • At the current price I estimate that the stock is fairly priced but for investors who need a place to “hide”, Walmart would be high on my list.
Walmart Retail Location. Walmart introduced its Veterans Welcome Home Commitment and plans on hiring 265,000 veterans.

jetcityimage/iStock Editorial via Getty Images

Company Description

Walmart (NYSE:WMT) is a global retailer and wholesaler (primarily of grocery and general merchandise items). It also has a significant eCommerce operation. Although predominantly a US company (82% of revenues) it also has operations in Africa, Canada, Central America, Chile, China, India and Mexico.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in WMT over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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