Walmart (WMT -0.37%) is the largest company in the U.S. by sales. It's been able to keep that status by being a humble retailer, fending off competition from the tech and artificial intelligence (AI) giants. Even Amazon (AMZN 0.94%), which controls close to 40% of e-commerce in the U.S. and has the largest cloud computing business in the world, hasn't been able to overtake it, although it's likely to in the near future.
Walmart stock outperformed the market by a wide margin last year, gaining triple the S&P 500's 25% return, but its momentum is slowing in 2025. However, it's still a great buy for the value investor. If you're looking for a top value stock to buy today, here are three reasons why Walmart is an excellent candidate.
1. E-commerce is on the rise
Amazon may be the leader of e-commerce, but Walmart knows where its strengths lie. It's all-in on leveraging its edge, and Amazon's weakness, to grow its e-commerce presence.
Although Walmart only accounts for 6% to 7% of U.S. e-commerce sales, well below Amazon's share, Walmart is growing a lot faster these days. In the 2026 fiscal first quarter (ended April 30), U.S. e-commerce sales increased 22% year over year. Amazon's online stores sales and third-party sellers sales both increased 11% year over year in the second quarter, up from 5% and 6% respectively in Q1.
Image source: Walmart.
Walmart has about 4,600 retail stores in the U.S. -- more than double the number of rival Target, almost triple the number of premium grocer Kroger, and quadruple the number of Costco Wholesale. These stores are built-in distribution centers, and Walmart is using them as last-mile delivery hubs to get orders out faster and cheaper, since it has many of the products customers order on hand at all times. It already has a powerful distribution model for getting products into these stores, making it efficient to use them for e-commerce as well.
Another way Walmart is leveraging its store count is for pickup. There's a Walmart or Sam's Club store within 10 miles of 90% of the U.S. population, and people who don't want to wait for an order have an easy time picking it up at their local Walmart. In the first quarter, deliveries in under three hours increased 91% year over year.
This is a model Amazon can't replicate. Amazon has tried to develop some kind of physical presence for years, with mixed results. This is where Walmart dominates. While this may not ever make Walmart No. 1 in U.S. e-commerce, it should ensure the company's growth and ability to stay in a steady second place for the foreseeable future.
2. It's unbeatable in retail
E-commerce still represents a small percentage of Walmart's total sales, about 13% in Q1. Its total sales were $166 billion in the quarter, and they continue to increase, up 2.5% year over year. There is no other retailer that can come close to that, even when you include e-commerce. Amazon may overtake Walmart soon as the largest company, since it hit $167 billion in sales in the second quarter, but only about $100 million of that came from retail.
Walmart management continues to raise the bar for what it offers, renovating stores, making them more efficient, and changing the product assortment to meet different demand. The company is also finding new ways to boost engagement and revenue, such as its membership program and its advertising business. Membership grew 10% over last year in Q1, and membership fee income was up 15%.
Walmart also got investor approval for being resistant to tariffs, since much of its merchandise is made in the U.S., and leverage with suppliers means it can change packaging and production to come in even lower on cost. Finally, despite its size, the company also sees further opportunity to open new stores, and it opened 212 new stores in Q1.
3. It's a Dividend King
Value investors love a great dividend stock, and Walmart fits the bill. It doesn't have a high yield, only 0.9% at the current price, but it's growing, and it's reliable. Walmart is a Dividend King, which means the company has raised its dividend for at least 50 years. Walmart recently joined the club, and it raised the dividend for the 52nd straight year in March.
Walmart stock still packs a strong punch, and if you're looking for a stable and powerful value stock, Walmart could be an excellent addition to your portfolio.
