John Furner is the right leader to drive Walmart’s stock higher: here’s why

Walmart Inc. (NYSE: WMT) is inching down this morning after its longtime chief executive, Doug McMillon, said he’ll retire in January, with John Furner set to take the reins on February 1st.

Investors seem nervous primarily because they believe it may be hard to fill in for McMillon, who has transformed WMT into a well-diversified retailer with a market cap that looks headed for $1.0 trillion in 2026.

Despite today’s pullback, Walmart stock is trading more than 20% higher than its year-to-date low.

Why John Furner’s appointment is bullish for Walmart stock

Despite the initial sell-off, SW Retail Advisors’ president Stacey Widlitz believes Furner’s appointment is largely positive for WMT shares, primarily because “he’s not a stranger to this.”

Furner, currently the head of its US business, has been with the retail behemoth for more than three decades and is credited with driving much of its domestic success.

This is significant given that the US business currently makes up roughly 70% of the company.

Furner has overseen strong growth in both traffic and ticket size, especially among higher-income consumers – a demographic Walmart Inc has increasingly captured in recent years.

His deep operational experience and familiarity with the company’s culture position him well to lead without disruption, Widlitz told CNBC in an interview today.

While leadership change is a shock, “we have somebody already positioned who’s been working with Doug,” she noted, adding that continuity is really key to maintaining momentum and investor confidence.

Why WMT shares are worth owning heading into 2026

Speaking with CNBC, Widlitz made a strong case for owning Walmart shares heading into 2026.

According to her, WMT continues to steal market share from competitors like Target and Kohl’s – especially as consumers seek value amid economic uncertainty.

Meanwhile, the company’s advertising business is contributing high-margin revenue as well.

Widlitz recommends sticking with Walmart for the longer term since its scale gives it unmatched leverage over vendors, allowing it to keep prices low and offer the best deals in the market.

Amid inflation and tariffs remaining volatile, this pricing power is a major strategic advantage, she concluded. A 0.93% dividend yield makes up for another great reason to own WMT stock at current levels.

Walmart Inc continues to play the long game

With Furner only 51 years old, Walmart Inc. is positioning itself for a long runway of leadership stability. The decision mirrors McMillon’s own tenure, suggesting a commitment to continuity and long-term strategy.

While the market may be digesting the news with caution, the fundamentals remain strong.

WMT’s ability to attract higher-income shoppers, expand its ad revenue, and maintain pricing dominance all point to a resilient business model.

Investors may view the current dip as a buying opportunity. As Widlitz put it, “You can put more money to work here.” With Furner at the helm, Walmart stock looks well-equipped to significantly drive shareholder value into 2026 and beyond.

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