10 Best Department Store Stocks to Invest in

1. Walmart Inc. (NYSE:WMT)

Number of Hedge Fund Holders: 116

Walmart Inc. (NYSE:WMT) is an omnichannel retailer operating retail and wholesale stores, clubs, e-commerce websites, and mobile applications. It offers an elaborate array of items, from general merchandise and electronics to food, groceries, and more.

The company reported sales growth of 5.2% in fiscal Q4 2025, along with a 9.4% adjusted operating income growth in constant currency. Walmart Inc. (NYSE:WMT) is continually gaining market share across income levels and countries. Unit volumes and transaction counts were up across all its markets in the year’s first three quarters, reflecting its healthy top line. The company’s prices are low, and it is becoming increasingly convenient, resulting in its growing popularity.

In February, Walmart Inc. (NYSE:WMT) Canada announced plans to spend $4.51 billion on new stores, reflecting supply-chain expansion. As part of the initiative, the company plans to open dozens of stores nationwide, starting with opening five supercenters in Ontario and Alberta by 2027, two of which are set to open this year.

In a report released on March 20, Mark Astrachan from Stifel Nicolaus maintained a Buy rating on Walmart Inc. (NYSE:WMT), with a price target of $93.00. Its median price target of $87.04 implies an upside of 26.38% from current levels.

Overall, WMT ranks first among the 10 best department store stocks to invest in. While we acknowledge the potential of department store stocks, our conviction lies in the belief that 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 but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.