The Newest Stock in the Nasdaq-100 Soared 549,000% Since Its IPO, and It's Still a Buy Right Now, According to Wall Street (Hint: Not Strictly a Tech Company)

The Nasdaq Composite is one of the widely followed stock market indexes in the U.S. The expansive tech-centric index tracks the performance of roughly 3,000 stocks listed on the exchange. The Nasdaq-100 is a subset of that index, tracking the performance of roughly 100 of the largest non-financial companies on the Nasdaq stock exchange. To be a component of the Nasdaq-100, a company must meet the following prerequisites:

• Must be listed exclusively on the Nasdaq exchange
• Must be highly liquid
• Must have been listed on an eligible exchange for at least three full calendar months
• A minimum of 10% of its outstanding shares must be available for trading
• Must not have filed for bankruptcy or entered into an agreement to be acquired

Walmart (NASDAQ: WMT) is the most recent addition to the Nasdaq-100, and will be joining the benchmark before the market opens on Jan. 20, replacing biopharmaceutical company AstraZeneca (NASDAQ: AZN). This comes on the heels of Walmart's decision to move its listing to the Nasdaq last month. Since its IPO in 1970, the stock has soared 549,000% (as of this writing).

The company requires little introduction. It's the world's largest retailer when measured by sales, according to the National Retail Federation. Its performance isn't relegated to some dusty past, either. Walmart has gained 28% over the past year, and the stock is still a buy right now, according to Wall Street.

Image source: Getty Images.

Taking discount retail to the next level

Walmart wasn't the first discount retailer when the store opened in 1962, but founder Sam Walton was a man on a mission to bring low prices and great value. Competitors dismissed the idea at the time, but Walton got the last laugh. Walmart now boasts over 5,200 locations and is a growing force in e-commerce.

Walmart isn't strictly a tech company, and its move to the Nasdaq raised eyebrows. However, CFO David Rainey explained:

Moving to Nasdaq aligns with the people-led, tech-powered approach to our long-term strategy. Walmart is setting a new standard for omnichannel retail by integrating automation and artificial intelligence (AI) to build smarter, faster, and more connected experiences for customers, while enabling our associates to deliver even greater value at scale.

The company's recent results help illustrate the omnichannel retailer's incredible resiliency. In its fiscal 2026 third quarter (ended Oct. 31), Walmart generated net sales of $177 billion, up 5.8% year over year -- or 6% in constant currency -- resulting in adjusted earnings per share (EPS) of $0.62, an increase of 7%. The company's global e-commerce sales jumped 27% and CEO Doug McMillon noted Walmart is gaining market share. Comparable sales at its U.S. locations rose 4.8%, driven higher by transactions that increased 1.8% and average ticket size, which climbed 2.7%.

Management believes Walmart's growth streak will continue. The company increased its forecast and now expects net sales to increase by roughly 5% at the midpoint of its guidance, up from its original outlook, which called for 3.5% growth.

On the earnings call, Rainey noted that the company's Walmart+ membership program continued to gain converts, with double-digit growth, as Q3 net additions were "the strongest on record." These subscribers should help fuel future growth.

Analysts are still bullish on Walmart

Wall Street rarely agrees on anything, so it's particularly noteworthy that the majority of analysts who cover Walmart are bullish. Of the 43 analysts who offered an opinion in January, 93% rate the stock a buy or strong buy, and none recommend selling.

TD Cowen analyst Oliver Chen is the most bullish Walmart analyst on Wall Street, having recently reiterated his buy rating on the stock and increased his price target to $136. This represents potential upside for investors of 15% compared to Monday's closing price. The analyst recently added Walmart to the firm's "Best Ideas 2026" list, arguing that the combination of value, scale, and adoption of technology represents a durable competitive advantage and runway for future growth.

There is the matter of Walmart's valuation to consider. The stock is currently selling for 42 times earnings, above its five-year average of 35, so it's certainly fetching a premium.

That said, Walmart's long-term track record is undoubtedly in its favor. This blue chip stock has gained 465% over the past decade, outpacing both the Nasdaq Composite and the S&P 500, which gained 407% and 260%, respectively. Furthermore, my colleague Sean Williams makes a strong argument that Walmart will join the trillion-dollar club in 2026.

Given the company's strong track record of growth, technological innovation, and market share gains, I'd submit that Walmart is certainly worth a look.

Danny Vena, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AstraZeneca Plc and Walmart. The Motley Fool has a disclosure policy.