We recently published a list of 11 Best Beginner Stocks To Invest In Now. In this article, we are going to take a look at where Walmart Inc. (NYSE:WMT) stands against other best beginner stocks to invest in now.
The Downsides to Stocks Rallying Higher
Stocks in the United States are rallying high, but some strategists are eyeing a few risks. On December 5, Max Kettner, Chief Multi-Asset Strategist at HSBC, appeared in an interview on Yahoo Finance to discuss the market outlook heading into 2025. Kettner shared that investors and analysts alike hold extremely bullish expectations of the market in 2025. While that may likely be true, an extremely bullish market may pose a significant risk and have multiple downsides.
He stated that the market will likely see strong upsides on the earnings front, leading to higher yields, which will leave a question on the future of the cutting cycle and whether the Fed will have to commence a rate hike again. He emphasized that higher terminal rates will bring in bond volatility and impact nearly every risk asset in the market.
Speaking of positives, Kettner highlighted that the next few quarters exhibit pretty low growth expectations and earnings expectations for the S&P. He reiterated that with a much lower growth rate, the cutting cycle will be executed as planned. As for inflation, he highlighted the importance of super core inflation, also referred to as underlying inflation. He believes super core inflation is more likely to decline, especially in the first half of the year, adding that he is not as worried about inflation as he was almost three to four months ago.
Kettner stated that the next six to seven months will deliver a supportive market environment for equities in the S&P, especially for global equities. He also believes that the market will see a 12% to 13% upside in the next 12 months until the end of 2025. While Kettner remained inclined to tech stocks, he added that other sectors, such as industrials, will also see a “mini re-acceleration.”
He emphasized that the market rally will go beyond the S&P especially with the current “goldilocks” backdrop, high growth projections, and consensus expectations, benefiting other asset classes. Kettner shared that the ideal portfolio for investors will be tech stocks and a combination of stocks in other sectors, especially industrials and US banks. He added that these sectors are likely to benefit from regulatory changes and the current economic backdrop.
As economic and political turmoil encapsulates the market, some stocks have been performing consistently well over the years, positioned as solid investments, especially for new investors. That said, let’s take a look at the 11 best beginner stocks to invest in now.
Our Methodology
To come up with the 11 best beginner stocks to invest in now, we compiled a list of the top blue chip stocks. We then tracked the hedge fund sentiment of each stock and picked the most popular ones. Our list is in ascending order of the number of hedge fund holders as of Q3 2024, according to Insider Monkey’s database.
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) is one of the biggest retail companies in the world, and it ranks ninth on our list of the best beginner stocks to invest in right now. It operates retail outlets, wholesale units, and e-commerce sites in more than 20 countries that serve more than 240 million customers every week. The company reported solid financial results in the fiscal third quarter of 2025, with e-commerce sales growing by 27% and its advertising business growing by 28% on a global level. Overall, consolidated revenue was worth $169.6 billion, up from $160.8 billion in the fiscal third quarter of 2024.
Its solid financial performance and growing momentum in e-commerce have also improved the liquidity situation of WMT. By the end of FQ3 2025, Walmart Inc. (NYSE:WMT) had $10 billion in cash and cash equivalents, an operating cash flow of $22.9 billion, and a free cash flow worth $6.2 billion. Over the past few months, the company has shown interest in AI-backed technologies, having launched a generative AI-powered product search tool and a data analytics platform allowing customers to shop more effectively and receive intuitive product recommendations.
Speaking of adaptive retailing, On October 9, Walmart Inc. (NYSE:WMT) revealed its Immersive Commerce platform backed by artificial intelligence, generative AI, and augmented reality, to offer personalized shopping experiences to customers. Keeping its growth trajectory in mind, in the full fiscal year of 2025, Walmart Inc. (NYSE:WMT) expects net sales to increase by 4.8% to 5.1%, a significant increase from its previous guidance as of August 15, 2024. Operating income is expected to follow similar growth trends with expectations to increase by almost 8.5% to 9.25%.
Overall, WMT ranks 9th on our list of best beginner stocks to invest in now. While we acknowledge the potential of WMT to grow, our conviction lies in the belief that certain 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.
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Disclosure: None. This article is originally published at Insider Monkey.
