Why Walmart Inc. (WMT) Stock to Buy for the Next Three Months?

Why Walmart Inc. (WMT) Stock to Buy for the Next Three Months?

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We just published a list of The top eight stocks to buy in eight different sectors for the next three months. In this article, we will look at how Walmart Inc. (NYSE:WMT) where it ranks with other top stocks to buy in eight different sectors over the next three months.

On November 25, the stock market saw a major rally, with the Dow Jones Industrial Average jumping 440 points to a new record near 44,736.57. The S&P 500 also reached a new high, gaining 0.3% to 5,987.37, while the Russell 2000 index, which focuses on small-cap stocks, hit an all-time high, increasing 1.47% to 2,442.03. The Nasdaq also rose, closing 0.27% higher at 19,054.84. CNBC reported that the market’s strong performance was due to President-elect Donald Trump’s selection of Scott Bessent, founder of Key Square Group, as Treasury Secretary. Investors are hopeful that Bessent, a hedge fund manager, will support the equity market and help slow down some of Trump’s protectionist policies, such as his approach to taxes.

In an interview with CNBC on November 25, Brian Belski, Chief Investment Officer at BMO Capital Markets, expressed his bullish stance on the US stock market, saying it remains the best asset in the world. He confirmed that despite the uncertainty and uncertainty surrounding the market, his team has maintained its status since 2009.

Belski said that many investors are too focused on valuation, which he believes is the worst metric for predicting future trends. Instead, he emphasizes the importance of achieving consistent wage growth, where the US is expected to outpace other regions.

He also highlighted the potential for growth in the financial sector, particularly in the areas of ratings, asset managers, and discretionary spending. His team’s research shows that wages in the US financial sector are very low, and he expects a big trade-off for wages.

Regarding valuation, Belski dismissed the idea of ​​providing a direct valuation metric, such as the P/E ratio, as naive. Instead, his team uses macro P/E long-term trends and dividend discount models to analyze the market. He believes the S&P 500 could reach 6,700, driven by US growth and wage stability.

Brian Belski has been shipping small-cap stocks for over a year and believes that small-cap stocks are a good play. He also implies that small stocks are undervalued, citing various metrics such as price-to-sales, and price-to-book, as well as using metrics such as return on assets and return on equity. He points out that these metrics show that small-cap stocks are a good investment opportunity.

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