Why Walmart Stock Jumped 11% in April

Jennifer Saibil, The Motley Fool

Mon, May 5, 2025, 7:02 AM 3 min read

• Walmart has been enjoying robust growth driven by a boost in e-commerce.

• It provided positive updates about its business potential and stance on tariffs at its annual shareholders' meeting.

• Walmart stock pays a reliable and growing dividend.

Walmart (NYSE: WMT) stock gained 11% in April, according to data provided by S&P Global Market Intelligence. Investors are flocking to what they see as a safe stock in the new tariff environment, and this call was bolstered by updates at the company's annual shareholders' meeting, where management shared recent successes.

Walmart has been enjoying strong growth recently, particularly in its e-commerce business, which is driving growth across the business. It's the largest retailer in the world, with more than 10,000 stores globally, nearly half in the U.S., and it happens to be a discount retailer, which makes it even more attractive when there's inflation.

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In the 2025 fiscal fourth quarter (ended Jan. 31), sales increased 5.3% (currency neutral) over last year, with operating income up 9.4%. Sales growth was driven by e-commerce, which was up 16% year over year. It was late to the e-commerce game, but it's finally leveraging its assets, meaning its stores, to beat out other e-commerce retailers. It's using its huge stores as distribution centers, and its unmatched portfolio count means it can get goods to customers fast and at a low cost. E-commerce sales increased 21% for the full year.

Management is taking a confident stance on tariffs. "History tells us that when we lean into these periods of uncertainty, Walmart emerges on the other side with greater share and a stronger business," said CFO John Rainey.

The company gave a positive outlook at the investor meeting, where it identified ways to drive growth through offering more value and leaning into technology. It sees the potential to widen margins as it grows its high-incremental-margin businesses, and it outlined a plan to generate higher cash flow and create greater shareholder value.

Walmart pays a growing dividend that yields 0.9% at the current price. That's pretty low because it moves conversely with the stock price, and the stock has been on fire.

It's risen so high that it trades at a P/E ratio of 41, which is much higher than the typical safe stock. Investors see a rare combination of growth and security in Walmart stock, plus the dividend, which makes the stock look very attractive in today's environment.