1. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Investors: 95
Walmart Inc. (NYSE:WMT) is one of the largest retailers in the world, the company operates over 10,500 stores and clubs in 19 countries and has e-commerce websites that offer a vast range of products from groceries and clothing to electronics and home goods.
On October 22, Walmart Inc. (NYSE:WMT) announced the launch of its nationwide same-day pharmacy delivery service, which will allow customers to receive their prescription medications and general merchandise in a single online order. This service is now live in six states, including Arkansas, Missouri, New York, Nevada, South Carolina, and Wisconsin, and is expected to be available in 49 states by the end of January 2025.
The new offering is designed to provide customers with a convenient and streamlined way to receive their prescription medications and other essential items. With Walmart Inc.’s (NYSE:WMT) extensive network of nearly 4,600 store locations with pharmacies, the company is well-positioned to reach tens of millions of customers across the country. The service will allow customers to manage their entire shopping experience, including their prescriptions, through the company’s app and website, with fulfillment provided by the nearest store.
Walmart Inc.’s (NYSE:WMT) investments in its e-commerce platform have started to pay off, with a 21% year-over-year increase in global e-commerce sales in the second quarter of FY25. The growth in e-commerce has been driven by several factors, including the expansion of distribution centers, fulfillment centers, and third-party seller services.
Walmart Inc.’s (NYSE:WMT) extensive physical footprint provides a significant advantage to its e-commerce business. The company’s marketplace services, which enable third-party sellers to use Walmart Inc.’s (NYSE:WMT) supply chain to fulfill orders, have also grown significantly in the second quarter.
Furthermore, Walmart Inc.’s (NYSE:WMT) automation and AI initiatives are expected to reduce operating costs and enhance margins. The company is also focusing on expanding product categories, engaging more third-party sellers, and expanding its distribution network is also expected to drive growth.
While we acknowledge the potential of Walmart Inc. (NYSE:WMT) to grow, our conviction lies in the belief that 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.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure. None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
