New Trade for October 18th, 2023

In a volatile market, prioritizing growth without compromising stability is key. Quality stocks in defensive sectors shine during uncertain times, offering both a safety net and growth potential. Many of the dividend-paying, blue-chip companies might be considered unexciting but are valuable during market turbulence. They provide peace of mind and continued portfolio growth, allowing investors to step back confidently. 

Today, we’re focusing on one stock that offers an excellent balance of growth and stability.

Walmart (WMT)

During the second quarter, Walmart emerged as a standout in a somewhat subdued retail sector. Not only did the retailer surpass expectations on both revenue and profit fronts, but it also provided third-quarter earnings guidance in the range of $1.45 to $1.50 per share. If it reaches the upper end of this range, it would equal the same quarter’s performance in 2022.

Walmart’s appeal extends across various consumer demographics, including those who may not have previously been regular shoppers at the store. This shift is primarily attributed to the ongoing inflationary pressures that have made consumers more conscious of their purchasing decisions, playing into Walmart’s favor as a value-oriented retailer.

For the full year, Walmart anticipates earnings between $6.36 and $6.46. At the higher end of this range, it represents a 2% increase from 2023. Analysts are even more optimistic, projecting an 8.8% earnings growth in the next 12 months. Moreover, with a reliable dividend currently yielding 1.43%, investors can anticipate a robust total return on their investment in WMT stock.

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