We recently published a list of 10 Best Stocks To Buy For Financial Stability. In this article, we are going to take a look at where Walmart Inc. (NYSE:WMT) stands against other best stocks to buy for financial stability.
Investing in stocks is one of the most effective ways to build long-term financial stability. While stocks can be volatile in the short term, history has shown that they generate higher returns over time compared to other asset classes. With the right strategy, investing in stocks can help individuals accumulate wealth, hedge against inflation, and secure a comfortable retirement. Stocks have historically outperformed other investment vehicles, such as bonds and savings accounts. According to data from the S&P 500, the stock market has delivered an average annual return of about 10% before inflation over the past century. In contrast, bonds have yielded around 5–6%, while traditional savings accounts provide returns of less than 1% annually. Recent studies reinforce this trend. A 2024 report from JP Morgan Asset Management found that over any 20-year period, the likelihood of losing money in the stock market is close to zero. Even with market downturns, those who stay invested tend to see significant growth.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
The power of compounding is a key reason why investing in stocks enhances financial stability. The earlier an individual starts investing, the greater the impact of compounding. For example, if an investor puts $5,000 annually into an index fund earning 8% per year, they would accumulate approximately $1.3 million over 40 years. This long-term growth potential allows individuals to plan for major life events, such as purchasing a home, funding education, or retiring comfortably. The US Federal Reserve reports that individuals with investment portfolios of at least $100,000 are significantly more likely to achieve financial security than those relying solely on savings. While stocks can be volatile, diversification helps reduce risk. A well-balanced portfolio containing stocks from different sectors, as well as international investments, can mitigate losses during market downturns.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
For this article, we scoured investing forums, analyst reports, and advice from money managers and billionaires to compile a list of stock options that can provide financial stability to investors. These stocks belong to defensive sectors like consumer staples, healthcare, and energy. Many of these companies have solid dividend histories and enjoy a stable market position. These stocks are also popular among hedge funds. Why are we interested in 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).
A manager standing in a hypermarket, pointing out items available for wholesale.
Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 88
Walmart Inc. (NYSE:WMT) engages in the operation of retail, wholesale, and other units worldwide. In the report for the third fiscal quarter of 2025, consolidated revenue reached $169.6 billion, marking a 5.5% increase, or 6.2%, on a constant currency basis. The consolidated gross margin rate also rose by 21 basis points, driven primarily by Walmart US. In February, Walmart (NYSE:WMT) said it planned to relocate more workers to Arkansas and California, eliminating jobs in North Carolina. The company has also announced new office spaces in Sunnyvale, CA, and Bellevue, WA, as well as upgrades in Hoboken, NJ, and its Fashion office in New York City.
Overall, WMT ranks 2nd on our list of best stocks to buy for financial stability. While we acknowledge the potential of WMT as an investment, our conviction lies in the belief that some stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a 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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Disclosure: None. This article is originally published at Insider Monkey.
