7 Best Department Store Stocks to Buy Now

1. Walmart Inc. (NYSE:WMT)

Number of Hedge Fund Holders: 88

Walmart Inc. (NYSE:WMT) is an omnichannel retailer that operates wholesale clubs, stores, e-commerce websites, and mobile applications. Its offerings include general merchandise, consumables, groceries, electronics, and more.

Although the company faced headwinds such as two large hurricanes, a US port strike, and the flooding caused by the hurricanes in fiscal Q3 2025, its strong operational model allowed it to bounce back immediately. It saw considerable growth in its in-store volumes, delivery sales, and curbside pickup in fiscal Q3 2025. Walmart Inc. (NYSE:WMT) is increasingly becoming more convenient for its customers, driving growth. It had almost no like-for-like inflation in the quarter, and its fiscal Q3 2025 earnings showed a 6.1% growth in sales. One of the primary drivers of growth for the company across the globe was its e-commerce offerings, which grew by 27%.

Increasing membership and advertising income also played a role, growing by 22% and 28%, respectively. The strength of these businesses is boosting the company’s profitability and allowing Walmart Inc. (NYSE:WMT) to strengthen its business model. It is gaining market share in general merchandise and grocery in the US, which gives it a considerable market advantage.

Overall, WMT ranks first among the 7 best department store stocks to buy now. 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: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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