Consider a new investment in Walmart (NYSE: WMT) but are you intimidated by the recent rise in stocks to record highs? That concern is not unfounded. It’s almost always better to buy good stocks at a discount than at a premium, if you can.

However, this is one of those cases where waiting for a better price could end up costing you more than it saves you. Walmart shares are rising because the retailer is running on high gear, and that’s not likely to change anytime soon.

If you’re wondering specifically why the world’s largest retailer is such a worthwhile investment right now, here are the top four reasons.

1. Walmart’s sheer size is a clear competitive advantage

You probably already know that Walmart is the largest brick-and-mortar retailer in the world. What you may not realize is just how much bigger it is. To put that into perspective, this company operates over 10,600 stores around the world, more than half of which are outside the United States. Its closest competitor is Kroger with its 2,750 restaurants, while there are almost 2,000 Goal shops.

In other words, as big as the e-commerce giant Amazon In terms of sales, Walmart is still bigger.

Of course, size isn’t necessarily everything. After all, even big companies can be poorly managed! However, Walmart is managed very, very well, using its size and the resulting purchasing power to keep the competition at bay by doing things that the competition simply can’t afford.

2. The retailer’s revenue ecosystem approach works

You’re probably familiar with the term “omnichannel,” but if not, it’s just a term used to describe how retailers are merging their online and in-store shopping environments into a seamless experience for consumers. However, it’s a term that no longer accurately describes how smarter retailers like Walmart are interacting with shoppers. The industry is increasingly creating new ways for consumers to purchase goods without even thinking about it; shopping at a particular chain store is simply becoming part of a lifestyle.

Yes, Walmart’s subscription-based Walmart+ program is one example of this lifestyle ecosystem. While the company didn’t provide a specific headcount, it reported double-digit percentage growth in the number of paying members, resulting in 14.4% year-over-year growth in membership revenue. And since Walmart+ members enjoy free shipping and delivery, it’s understandable that last quarter’s 22% year-over-year growth in e-commerce sales was largely driven by this convenience-seeking audience.

The story continues

But it’s not just about providing more convenience. Walmart is monetizing its ecosystem in other ways, too. For example, the company now allows its sellers and suppliers to pay to advertise their goods sold through Walmart.com. Revenue from this high-margin advertising business rose 26% year-over-year last quarter and 30% in the U.S. The retailer also recently launched an initiative to take over the television brand Viziowhich provides another platform to directly engage and advertise to consumers. As of the latest count, Vizio reported over 18 million active accounts/users of its TV. It will be interesting to see the different ways in which Walmart will engage with them.

Its enormous presence in brick-and-mortar retail naturally promotes the use of its online and take-away offerings.

3. Walmart is (finally) attractive to high-income households

Before the COVID-19 pandemic, wealthy households weren’t exactly regular Walmart shoppers. Then practicality kicked in. When inflation began to rise in 2021, even households with annual incomes above $100,000 were forced to think about their budgets. Walmart was not only more likely to offer these consumers what they needed, but also more likely to do so at a better price. Over the next few years, the retailer was able to regularly tout market share gains in this demographic.

However, inflation is finally easing and investors are wondering whether the new customers will continue to shop at the discounter.

Some certainly won’t. But given what Walmart is doing to keep those people, many probably will.

Take, for example, the company’s redesign of the store presentation of some of its clothing lines. For decades, its retail spaces resembled warehouses rather than department stores. But that’s no longer the case. Seasonal and themed visual displays (clothed mannequins, full room designs on pedestals, branded backdrops, etc.) are now the norm, harking back to the glory days of traditional department stores by showcasing in-demand brands and merchandise.

It’s not just about more attractive in-store presentation. The retailer is also adding higher-end brands to its assortment. For example, Reebok and Chaps have both recently joined the chain’s premium clothing line. Premium wines are also a once-unlikely addition to store shelves, appealing to the upscale crowd.

4. Walmart is resilient regardless of the economic backdrop

Walmart’s business is well protected regardless of the economic situation. This is mainly because more than half of its sales come from food. After all, people have to eat, no matter what the cost.

Even if you ignore the must-have nature of most of Walmart’s sales, the retailer can still rise to the occasion. More than 10% of its sales come from health and wellness products, and while about 25% of its sales come from general merchandise, in theory While Walmart may be economically sensitive, consumers will always need staples like socks, office supplies, towels, children’s clothing, lightbulbs, and the like. No other retailer beats Walmart’s prices on such items.

Or think of it this way. Since 2017, Walmart hasn’t once had quarterly sales that were better than the previous year. That includes late 2021 and early 2022, as the world slowly emerged from the pandemic that had given the company incredibly strong sales growth just a year earlier.

Just keep an eye on everything

To be clear, investors should not expect too much. Walmart will never be a high growth stock like, for example, NVIDIA or alphabet. Last quarter’s sales growth of just under 5% is probably in line with the company’s long-term average. Consumers are able and willing to spend a certain amount no matter how strong or weak the economy is. Just as there are only so many places Walmart can profitably open a store.

On the other hand, you shouldn’t be dissuaded from making a solid investment just because Walmart stock just rose so much, or because the company itself doesn’t have that much momentum. You’re not investing to have excitement. You’re investing to get plausible growth. To the extent that every portfolio needs some level of stability and predictability, this name offers both in abundance and will likely continue to do so in the future.

Should you invest $1,000 in Walmart now?

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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, a subsidiary of Amazon, is a member of The Motley Fool’s board of directors. James Brumley has positions at Alphabet. The Motley Fool has positions in and recommends Alphabet, Amazon, Nvidia, Target, and Walmart. The Motley Fool recommends Kroger. The Motley Fool has a disclosure policy.

4 Reasons to Buy Walmart Stock Like There’s No Tomorrow was originally published by The Motley Fool