In this piece, we will take a look at ten best performing dow stocks in 2024.
The Dow Jones Industrial Average is one of the most closely watched stock indices globally, often considered a barometer of the overall health and trajectory of the American economy. As a price-weighted index, it is composed of 30 blue-chip companies from various sectors, excluding transportation and utilities. The Dow’s inclusion of companies from diverse industries such as technology, healthcare, finance, and consumer goods makes it a valuable indicator of market trends. Created in 1896 by Charles Dow, the Dow Jones Industrial Average has stood the test of time and, alongside the NASDAQ 100 and the S&P 500, remains one of the most recognized and influential stock market indices in the world.
The Dow’s journey over the past century has been marked by numerous highs and lows, often reflecting the broader economic conditions. For instance, the index experienced some of its worst single-day losses during the 2008 financial crisis. On September 29, 2008, the Dow plunged by 777.68 points, which was its largest single-day point drop at the time. The financial crisis, triggered by the collapse of Lehman Brothers and a series of banking failures, led to panic selling across global markets. That year, the Dow lost nearly 34% of its value, marking one of its worst annual performances. On the flip side, some of the best years in the Dow’s history include 1915, when it rose by a staggering 81.66%, and 1933, when it registered an annual gain of 63.74% amid a recovery from the Great Depression.
Fast forward to 2024, the Dow Jones Industrial Average has continued its volatile yet upward trajectory. As of September 20, 2024, the Dow closed at a new record high of 42,063.36 points, inching up by 38.17 points or 0.09% for the day. This milestone was reached after a period of substantial gains following the Federal Reserve’s decision to ease interest rates—the first such move in four years. The easing of monetary policy has provided a boost to the market, with investor sentiment improving and confidence in the resilience of the American economy strengthening.
Despite some mid-week volatility in the broader market, the Dow is expected to end September on a positive note. This rally was notable, considering the uncertainty surrounding the upcoming U.S. presidential elections, which has led many investors to take a cautious stance and refrain from making significant commitments until the political landscape becomes clearer. Tom Lee, co-founder and head of research at Fundstrat Global Advisors, highlighted this hesitancy during an appearance on CNBC’s “Closing Bell,” noting that “a lot of investors don’t want to commit capital until after Election Day. I don’t think it matters who wins; they just want to get that event behind them.”
Despite these uncertainties, the Dow has shown remarkable resilience, tracking to end the month of September higher. The 30-stock index has hit several fresh all-time highs throughout the year, demonstrating robust performance across key sectors. In fact, as of September 25, 2024, the Dow had reached a 52-week high of 42,299.64 points, representing a year-to-date (YTD) gain of 11.21% and a one-year change of 23.25%. These figures underscore the strength of the index and the performance of its constituent companies.
The success of the Dow in 2024 can be attributed to a range of factors. For one, leading technology and consumer goods companies, which form a significant part of the index, have continued to post strong earnings amid solid consumer demand and operational efficiencies. Moreover, the financial sector has also benefitted from the recent shifts in monetary policy, with lower interest rates driving increased borrowing and investment activities. Additionally, healthcare companies have maintained growth trajectories, as innovation and demand for services remain high in the post-pandemic era.
The top-performing stocks within the Dow Jones Industrial Average in 2024 have played a pivotal role in driving the index to record highs. These companies, known for their strong fundamentals, market leadership, and robust financial health, have outpaced broader market expectations. Investors seeking exposure to blue-chip companies with a track record of stability and consistent returns have found the Dow to be an attractive option.
In this article, we will delve into the 10 best-performing Dow stocks in 2024. From established technology giants to consumer staples that continue to dominate their respective industries, these stocks have led the charge in pushing the Dow Jones Industrial Average to new heights.
A close up of a laptop displaying a detailed graph of the Dow Jones Internet Commerce Index.
Our Methodology
For this article, we utilized a stock screener to identify DJIA index stocks that have shown significant gains year-to-date as of September 25, 2024. We arranged these stocks in ascending order based on their performance. Additionally, we examined the hedge fund sentiment surrounding these stocks, noting the number of hedge fund holders for each as of the end of Q2 2024.
At Insider Monkey we are obsessed with 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10. The Coca-Cola Company (NYSE:KO)
Year to date Share Price Gain: 21.25%
Number of Hedge Fund Holders: 68
The Coca-Cola Company (NYSE:KO) continues to exhibit robust fundamentals, establishing itself as a top-performing stock in the Dow with a year-to-date share price gain of 21.25%. In Q2 2024, the company reported an earnings per share (EPS) of $0.84, exceeding expectations of $0.806. This performance highlights the effectiveness of The Coca-Cola Company (NYSE:KO) all-weather strategy, which has enabled the company to navigate varying market dynamics while driving consistent growth.
In the second quarter, The Coca-Cola Company (NYSE:KO) achieved an impressive organic revenue growth of 15%, underpinned by a 9% increase in price/mix growth and a 2% unit case growth. Notably, concentrate sales outpaced volume growth by four percentage points, showcasing effective inventory management amid supply chain challenges. Furthermore, comparable gross margins rose by approximately 200 basis points, reflecting underlying operational efficiencies despite 10% currency headwinds.
The Coca-Cola Company (NYSE:KO) strategic investments in high-growth markets, such as Asia Pacific and Latin America, have resulted in double-digit volume growth, particularly in its sparkling beverage segment. Products like Coca-Cola Zero Sugar achieved over 20% volume growth, further solidifying the brand’s appeal. With 68 hedge fund holders as of Q2 2024, compared to 62 in the previous quarter, investor confidence in The Coca-Cola Company (NYSE:KO) is clearly on the rise.
The company’s free cash flow of approximately $3.3 billion demonstrates solid cash generation capabilities, even as it invests in growth initiatives. Its commitment to a fit-for-purpose balance sheet, with a net debt leverage ratio of 1.5 times EBITDA, indicates a strong financial position to support ongoing capital allocation strategies, including dividends and expansion efforts.
The Coca-Cola Company (NYSE:KO) ability to innovate, highlighted by partnerships with leading brands such as Marvel, has also strengthened its market presence. The company is poised to capture further opportunities, as indicated by its revised 2024 guidance for organic revenue growth of 9% to 10% and comparable earnings per share growth of 13% to 15%. Overall, The Coca-Cola Company (NYSE:KO) strong operational metrics, strategic growth initiatives, and robust financial health underscore its potential for sustained performance, making it a compelling investment in 2024.
09. JPMorgan Chase & Co. (NYSE:JPM)
Year to date Share Price Gain: 23.57%
Number of Hedge Fund Holders: 111
JPMorgan Chase & Co. (NYSE:JPM) remains a strong contender in the financial sector, showcasing impressive fundamentals despite a slight earnings miss in Q2 2024. The firm reported a net income of $18.1 billion, translating to an EPS of $6.12 on revenue of $51 billion. Notably, excluding non-recurring items, the adjusted EPS stood at $4.40, demonstrating a resilient performance amid challenging economic conditions. Year-to-date, the stock has achieved a remarkable share price gain of 23.57%, underscoring its robust market position and investor confidence.
The bank’s revenue growth was fueled by a notable 20% year-on-year increase, driven largely by its Commercial and Investment Banking (CIB) division, which saw a remarkable 50% surge in investment banking fees. This reflects JPMorgan Chase & Co. (NYSE:JPM) ability to capture significant market share and benefit from favorable market conditions. Furthermore, the net interest income (NII) rose to $43.1 billion, marking a 9% increase when adjusted for exceptional items. The bank’s strong performance in asset management, with long-term net inflows of $52 billion and a robust asset under management (AUM) of $3.7 trillion, highlights its competitive edge in wealth management.
JPMorgan Chase & Co. (NYSE:JPM) commitment to capital discipline is evidenced by a CET1 ratio of 15.3%, which positions it favorably against regulatory requirements. The company has announced a dividend increase to $1.25 per share, reflecting its strong cash flow generation and commitment to returning value to shareholders. Additionally, as of Q2 2024, the number of hedge fund holders stands at 111, a slight decrease from 112 in the previous quarter, indicating sustained institutional interest in the stock.
Despite challenges such as deposit margin compression and increased credit costs, JPMorgan Chase & Co. (NYSE:JPM) continues to demonstrate operational strength and market adaptability. With a well-diversified business model, strategic acquisitions, and a focus on innovation, JPMorgan Chase & Co. (NYSE:JPM) is well-positioned for sustained growth, making it one of the best-performing Dow stocks to watch in 2024.
08. The Travelers Companies, Inc. (NYSE:TRV)
Year to date Share Price Gain: 24.06%
Number of Hedge Fund Holders: 38
The Travelers Companies, Inc. (NYSE:TRV) has delivered impressive financial results in Q2 2024, significantly exceeding analysts’ expectations with earnings per share (EPS) of $2.51, well above the forecast of $2.01. This robust performance reflects the company’s ability to navigate a challenging environment marked by severe weather-related events. With a year-to-date share price gain of 24.06%, The Travelers Companies, Inc. (NYSE:TRV) is on a strong upward trajectory, demonstrating investor confidence.
The Travelers Companies, Inc. (NYSE:TRV) reported core income of $585 million, bolstered by a remarkable 55% year-over-year increase in underlying underwriting income, reaching $1.2 billion pre-tax. The consolidated underlying combined ratio improved to 87.7%, highlighting the company’s effective risk management and underwriting discipline. Notably, the Business Insurance segment achieved an exceptional underlying combined ratio of 89.2%, while the Personal Insurance segment improved significantly to 86.3%. These metrics showcase Travelers’ ability to maintain profitability even amid increased catastrophic losses of $1.5 billion in the quarter.
The company also witnessed impressive premium growth, with net written premiums rising by 8% to $11.1 billion. In particular, the Business Insurance segment reported a 7% increase in net written premiums, underscoring strong retention rates and new business generation. The retention rate stood at an impressive 85%, while the renewal premium change was a robust 10.1%. Furthermore, with 38 hedge fund holders as of Q2 2024, down from 40 in the previous quarter, it suggests a minor shift in institutional interest, which may present an opportunity for new investors to capitalize on the stock’s fundamentals.
The Travelers Companies, Inc.’s (NYSE:TRV) investment portfolio also performed well, generating after-tax net investment income of $727 million, a 22% increase from the previous year. The firm’s commitment to returning capital to shareholders is evident, with $498 million returned this quarter through share repurchases and dividends. The consistent performance, strong fundamentals, and proactive management strategies position The The Travelers Companies, Inc. (NYSE:TRV) for continued growth and profitability, making it a compelling choice for investors seeking stability and growth in the insurance sector.
07. Amazon.com, Inc. (NASDAQ:AMZN)
Year to date Share Price Gain: 26.71%
Number of Hedge Fund Holders: 308
Amazon.com, Inc. (NASDAQ:AMZN) demonstrated exceptional financial performance in Q2 2024, significantly exceeding market expectations with an earnings per share (EPS) of $1.26 compared to forecasts of $1.03. The company reported revenues of $148 billion, marking an 11% year-over-year increase, and a remarkable operating income of $14.7 billion, up 91% year-over-year. These robust results reflect Amazon.com, Inc. (NASDAQ:AMZN) ability to navigate economic challenges and leverage growth opportunities effectively.
One of the standout highlights from the earnings release was the dramatic increase in free cash flow, which surged 664% to $51.4 billion over the trailing twelve months. This metric underscores Amazon’s operational efficiency and cash-generating capabilities, allowing for strategic reinvestment in core areas such as AWS and AI-driven services. The AWS segment showcased continued strength, with revenue growth accelerating from 17.2% in Q1 to 18.8% in Q2, driven by trends in cloud migration and increasing demand for AI capabilities.
Furthermore, Amazon.com, Inc. (NASDAQ:AMZN) advertising business is on an upward trajectory, generating over $50 billion in revenue in the last year. The ongoing improvements in ad technology and the integration of AI in ad services present significant growth prospects, indicating that Amazon is well-positioned to capitalize on this market.
The company’s strategic investments in generative AI and machine learning are also promising. The introduction of products like Amazon SageMaker and Bedrock positions Amazon.com, Inc. (NASDAQ:AMZN) as a leader in the cloud computing landscape, catering to a growing number of developers and businesses eager to leverage AI technologies.
Investor sentiment remains strong, evidenced by a year-to-date share price gain of 26.71% and an increase in hedge fund holders, which rose to 308 as of Q2 2024, up from 302 in the previous quarter. These factors collectively create a compelling investment narrative for Amazon.com, Inc. (NASDAQ:AMZN), making it a standout performer in the Dow, particularly as it continues to innovate and expand its market presence across diverse sectors.
06. The Goldman Sachs Group, Inc. (NYSE:GS)
Year to date Share Price Gain: 27.31%
Number of Hedge Fund Holders: 68
The Goldman Sachs Group, Inc. (NYSE:GS) is a leading global investment banking, securities, and investment management firm that serves a broad range of clients, including corporations, financial institutions, governments, and high-net-worth individuals. Year to date, The Goldman Sachs Group, Inc. (NYSE:GS) share price has gained 27.31%, showcasing robust market performance. Hedge fund interest in the stock remains relatively high, with 68 funds holding stakes as of Q2 2024, compared to 72 in the previous quarter.
The Goldman Sachs Group, Inc. (NYSE:GS) posted strong financial results in the second quarter of 2024, beating earnings expectations. The company reported an earnings per share (EPS) of $8.62, surpassing analyst estimates of $8.35. This strong performance was driven by revenue growth across various business segments, particularly in global banking and markets, and asset wealth management.
The firm generated net revenues of $12.7 billion and net earnings of $3 billion during the second quarter. Its return on equity (ROE) stood at 10.9%, while the return on tangible equity (ROTE) was 11.6%, highlighting the efficiency in generating profits relative to shareholder equity. The company’s global banking and markets division produced revenues of $8.2 billion, up 14% year-over-year, driven by a 25% rise in equity underwriting revenues and a 39% increase in debt underwriting revenues. The investment banking backlog saw significant growth, reflecting the company’s ability to capitalize on the recovery in capital markets and mergers & acquisitions (M&A) activity.
The Goldman Sachs Group, Inc. (NYSE:GS) asset wealth management division also achieved impressive results, with revenues rising 27% year-over-year to $3.9 billion. The firm’s assets under supervision reached a record $2.9 trillion, while its total wealth management client assets rose to approximately $1.5 trillion. This segment delivered a 23% pre-tax margin for the first half of 2024, approaching its mid-term target of 25%.
Furthermore, The Goldman Sachs Group, Inc. (NYSE:GS) raised $36 billion year-to-date for its alternatives business and aims to exceed $50 billion in alternatives fundraising by year-end. The firm also returned $4.4 billion to shareholders through stock repurchases and dividends, demonstrating its commitment to enhancing shareholder value. Given its strong fundamentals and ability to capitalize on market opportunities, The Goldman Sachs Group, Inc. (NYSE:GS) remains a solid investment choice for 2024.
05. Caterpillar Inc. (NYSE:CAT)
Year to date Share Price Gain: 27.93%
Number of Hedge Fund Holders: 49
Caterpillar Inc. (NYSE:CAT) has shown a strong performance in 2024, with the stock gaining 27.93% year-to-date. The company recently reported its Q2 2024 earnings, beating market expectations. Caterpillar Inc. (NYSE:CAT) EPS came in at $5.99, exceeding analysts’ estimates of $5.56. Moreover, the number of hedge fund holders in Q2 2024 increased to 49, compared to 45 in the previous quarter, indicating heightened investor interest.
Caterpillar Inc. (NYSE:CAT) robust earnings performance highlights its solid fundamentals and effective cost management strategy. Despite a 4% decline in sales and revenues compared to the previous year, the company managed to achieve a record adjusted operating profit of $3.7 billion, driven by its strong execution and diverse end-market exposure. The adjusted operating profit margin improved to 22.4%, up by 110 basis points from the same period last year. This improvement reflects Caterpillar Inc. (NYSE:CAT) ability to maintain profitability even in a challenging macroeconomic environment.
The company’s performance in the second quarter was bolstered by a strong showing in the Energy and Transportation segment, where sales to users increased by 10%, offsetting weakness in the Construction Industries and Resource Industries. Caterpillar’s backlog also grew to $28.6 billion, up by $700 million from Q1 2024, demonstrating sustained demand for its products and services.
Additionally, Caterpillar’s free cash flow for the quarter was a robust $2.5 billion. The company continued to focus on shareholder returns, repurchasing $1.8 billion worth of shares and distributing $600 million in dividends. Caterpillar’s recent authorization of an additional $20 billion share repurchase program, coupled with its 8% dividend increase, underscores its commitment to returning capital to shareholders.
The positive outlook for Caterpillar Inc. (NYSE:CAT) adjusted operating profit margins for the full year, anticipated to be above the target range, further solidifies its bullish stance. Continued investments in sustainability and new product initiatives, such as battery-electric mining trucks and hydrogen-powered solutions, position the company for long-term growth. Caterpillar Inc. (NYSE:CAT) strong financial metrics, increased profitability, and strategic focus on high-growth sectors make it a compelling choice for investors looking for stable performance among Dow stocks in 2024.
04. International Business Machines Corporation (NYSE:IBM)
Year to date Share Price Gain: 35.27%
Number of Hedge Fund Holders: 54
International Business Machines Corporation (NYSE:IBM) has been a strong performer in 2024, with a year-to-date share price gain of 35.27%. This rise can be attributed to the company’s solid financial performance and strategic advancements in the fields of AI and hybrid cloud solutions. As of Q2 2024, IBM was held by 54 hedge funds, an increase from 49 in the previous quarter, showcasing growing investor confidence in the stock.
In Q2 2024, IBM exceeded market expectations with an earnings per share (EPS) of $2.43, compared to the anticipated $2.18. The company’s revenue for the quarter stood at $15.8 billion, representing a 4% increase year-over-year. This growth was largely driven by the strong performance of its Software and Infrastructure segments, which reported 8% and 3% revenue increases, respectively. IBM’s success in these segments underscores the effectiveness of its investments in innovation, particularly within the realms of hybrid cloud and AI.
International Business Machines Corporation (NYSE:IBM) AI and hybrid cloud strategies have become crucial revenue drivers, particularly through its generative AI platform, watsonx. This AI-powered platform has been integrated across various business segments, and its contribution to IBM’s AI-related business now exceeds $2 billion. The company’s emphasis on smaller, fit-for-purpose AI models, such as the Granite family of models, highlights IBM’s focus on cost-effective and customizable AI solutions, setting it apart in the competitive tech landscape.
Additionally, IBM has expanded its AI and automation portfolio with the acquisition of Apptio, which has strengthened its position in FinOps (financial operations) and automation. This acquisition is already reflecting positively on IBM’s annual recurring revenue (ARR), which grew to $14.1 billion, up 9% year-over-year.
International Business Machines Corporation (NYSE:IBM) free cash flow generation also reached new heights, with $4.5 billion reported for the first half of 2024, up $1.1 billion from the same period last year. This growth was primarily driven by strong EBITDA performance and effective capital expenditure management. With a robust liquidity position of $16 billion in cash and a solid balance sheet, IBM is well-positioned to continue its growth trajectory.
In conclusion, International Business Machines Corporation (NYSE:IBM) strategic focus on AI, hybrid cloud solutions, and operational efficiency has laid a solid foundation for sustained growth. With continued investments in innovation and strong financial results, International Business Machines Corporation (NYSE:IBM) remains an attractive option for investors seeking exposure to a leading technology company with a diverse business model.
03. American Express Company (NYSE:AXP)
Year to date Share Price Gain: 42.08%
Number of Hedge Fund Holders: 68
American Express Company (NYSE:AXP) is third on our list of the 10 best performing Dow stocks in 2024. The stock has shown an impressive performance this year with a Year-to-Date share price gain of 42.08%. As of Q2 2024, 68 hedge funds have invested in American Express Company (NYSE:AXP), up from 66 in the previous quarter, indicating rising institutional interest in the stock.
In its Q2 2024 earnings report, American Express Company delivered robust financial performance, beating earnings expectations. The company reported earnings per share (EPS) of $4.15, significantly above the consensus estimate of $3.26. American Express Company (NYSE:AXP) achieved revenue growth of 9% year-over-year on an FX-adjusted basis, reaching $16.3 billion. This impressive revenue expansion reflects the strength of its core business, driven by its high-quality, loyal customer base and a strong presence in both domestic and international markets.
American Express Company (NYSE:AXP) profitability continues to be a standout, with net income reaching $3 billion in Q2, reflecting a 44% year-over-year increase. Excluding a one-time gain of $479 million from the sale of its Accertify business, EPS still grew by 21%. The company’s ability to generate strong earnings in a slower growth environment highlights the resilience of its business model and strategic investments.
One of the key growth drivers for American Express is its premium customer base, which consists of high-spending and long-tenured customers with excellent credit profiles. The company has continued to attract new high-quality customers, resulting in steady double-digit growth in card fee revenue for 24 consecutive quarters. Additionally, American Express Company (NYSE:AXP) has demonstrated strong growth in its international segments, with a 13% increase in spending by international consumers and corporate clients.
The company’s focus on disciplined credit management has also paid off, with a reserve build of $101 million mostly driven by loan growth, while maintaining strong credit performance. Despite a modest sequential growth in US SME spending, the firm’s diversified revenue streams and significant investments in marketing and technology have allowed it to maintain its positive momentum.
Overall, American Express Company (NYSE:AXP) strong financial performance, increasing hedge fund interest, and ability to consistently generate superior returns make it a compelling investment among the best-performing Dow stocks of 2024.
02. 3M Company (NYSE:MMM)
Year to date Share Price Gain: 49.45%
Number of Hedge Fund Holders: 66
3M Company (NYSE:MMM) has had an impressive performance this year, with its stock gaining 49.45% year-to-date. The company recently released its Q2 2024 earnings report, which exceeded expectations and showcased strong operational performance. The company reported earnings per share (EPS) of $1.93, significantly higher than the consensus estimate of $1.68. This positive performance underscores the effectiveness of 3M Company (NYSE:MMM) strategic initiatives and operational improvements.
During the second quarter, 3M Company (NYSE:MMM) achieved revenue of $6 billion and an operating margin of 21.6%, which expanded by 440 basis points year-over-year. This growth was driven by organic growth, strict cost management, and restructuring savings. Additionally, the company delivered $1.2 billion in free cash flow, reflecting a solid cash conversion rate of 109%. This strong cash generation, combined with an expanded operating margin, highlights 3M’s continued ability to deliver shareholder value amidst a complex global economic environment.
The company is also benefiting from its recent organizational changes, including the successful spin-off of its healthcare business, Solventum, which contributed to improved efficiency and better resource allocation. 3M’s leadership is focusing on driving organic growth by investing in high-potential end markets such as auto electrification, climate tech, and industrial automation. The company’s R&D investment of $1 billion annually, or 4.5% of its revenue, positions it well to leverage these growth opportunities.
In Q2 2024, the number of hedge funds holding 3M Company (NYSE:MMM) increased to 66, up from 64 in the previous quarter, demonstrating rising institutional interest in the stock. The company’s strong balance sheet, low leverage ratios, and improved ratings outlook further bolster its investment appeal.
3M Company (NYSE:MMM) management also emphasized capital efficiency, with $400 million of stock repurchased during the quarter and a clear commitment to share buybacks in the second half of the year. The company’s focus on optimizing its supply chain and reducing costs has also started yielding results, with a target to lower inventory levels and unlock nearly $1 billion in cash over time. Overall, 3M Company (NYSE:MMM) robust financials, strategic realignments, and focus on operational excellence make it a compelling choice for investors, positioning it as one of the best-performing Dow stocks in 2024.
01. Walmart Inc. (NYSE:WMT)
Year to date Share Price Gain: 54.90%
Number of Hedge Fund Holders: 95
Walmart Inc. (NYSE:WMT) leads our list of 10 best performing Dow stocks in 2024. As one of the world’s largest retailers, Walmart operates a chain of hypermarkets, discount department stores, and grocery stores across the globe. The company has a strong presence in both physical retail and e-commerce, offering customers a diverse range of products and services, from groceries to apparel.
In its Q2 2025 earnings report, Walmart Inc. (NYSE:WMT) exceeded expectations, reporting earnings per share (EPS) of $0.67, compared to the anticipated $0.646. This performance showcases the company’s solid financial fundamentals and strategic initiatives that are driving growth and profitability. Year-to-date, Walmart’s share price has gained an impressive 54.90%, reflecting investors’ confidence in its operational strength and market leadership.
Walmart’s robust sales growth across all segments has contributed to its success. Total net sales increased by 4.9% on a constant currency basis, driven by strong global e-commerce growth of 21%. Walmart Inc. (NYSE:WMT) U.S. saw a 4.2% increase in comparable sales, propelled by high traffic and unit growth across both stores and digital channels. The company’s e-commerce sales in the U.S. surged 22%, showcasing the effectiveness of its online retail strategy. Walmart’s international segment also performed well, with constant currency sales growth of 8.3%, supported by strong results in markets such as Mexico, China, and India.
The company’s margins also expanded, with consolidated gross margins rising by 43 basis points. This improvement was led by the Walmart U.S. and international segments, reflecting the company’s focus on providing everyday low prices while managing costs effectively. Walmart’s private brand penetration continues to increase across markets, catering to customers seeking value.
Additionally, hedge fund interest in Walmart Inc. (NYSE:WMT) has been on the rise. As of Q2 2024, 95 hedge funds held positions in the company, up from 88 in the previous quarter. This growing institutional interest highlights the strong outlook for Walmart’s stock. Overall, Walmart Inc. (NYSE:WMT) diversified business model, strong financial performance, and strategic focus on expanding its e-commerce and membership platforms position it well for sustained growth and profitability in the coming years.
While we acknowledge the potential of WMT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. 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.
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