Why Walmart Stock Is the Recession-Proof Powerhouse You Need in Your Portfolio Right Now

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With higher-for-longer interest rates, investors fear economic pressures on their portfolios. That’s understandable, and I have a solution that you can use right now. Diversification is key, and Walmart (NYSE:WMT) is about as diversified as a company can get. Walmart stock is the perfect portfolio holding during these uncertain times.

I probably don’t need to convince you that Walmart is a powerhouse among physical retail store chains. Walmart is also a formidable e-commerce company. As InvestorPlace contributor Alex Sirois pointed out, Walmart grew its fourth-quarter 2023 online sales by 17% in the U.S. and by 23% globally.

What else does Walmart do? The company does a whole lot of different things for its broad base of customers. Consequently, even if there’s a recession coming, people won’t stop suddenly shopping at Walmart – and that’s why Walmart stock is such a great defensive pick in 2024.

You Probably Didn’t Know This About Walmart

Here’s something I’ll bet you didn’t know. Walmart is a financial backer of Ibotta, a digital-marketing firm. That’s a brilliant investment for Walmart, as Ibotta’s valuation is probably about to increase quickly.

Reportedly, Walmart holds a whopping 2.7 million shares of Ibotta. Now, according to Reuters, Ibotta is “targeting a valuation of up to $2.55 billion in its U.S. initial public offering” or IPO.

Ibotta was only valued at $1 billion in 2019, so it appears that the company is on a strong growth trajectory. Walmart evidently has no plans to sell its Ibotta shares.

This doesn’t mean you have to immediately buy Ibotta stock when it becomes available. If you’re invested in Walmart, then you’ll already have some exposure to Ibotta and its presence in the digital-marketing space.

A Healthy Revenue Source for Walmart

Additionally, Walmart is an established competitor in the healthcare-services market. So, you can add that to the growing list of markets that Walmart participates in.

As of late 2023, there were 48 Walmart Health medical-center locations in five U.S. states. These truly are one-stop shops for one’s healthcare needs. As HealthCareDive succinctly explains, Walmart Health centers provide “primary and urgent care, labs, X-rays and diagnostics, dental, optical, hearing and behavioral health and counseling in one facility.”

Furthermore, Walmart Health is in growth mode as it’s expanding throughout Texas with 18 new locations. Along with Monday-through-Saturday in-person services, these locations will offer telehealth services on Sundays. Hence, we can even add telemedicine to the list of markets that Walmart covers in one way or another.

Prepare for Good and Bad Economic Conditions With Walmart Stock

Previously, I explained how Walmart is involved in the artificial intelligence technology trend. The company is also part of the retail, e-commerce and healthcare markets. On top of all that, Walmart has a stake in the digital marketing space with the company’s investment in Ibotta.

By investing in Walmart, you’ll get instant diversification and confident participation in the profits of a huge and famous company. This means that Walmart can survive and even thrive during good and bad economic conditions.

Thus, today is a perfect day to start building a share position in Walmart stock or add to your position if you already have one.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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