NEW YORK (TheStreet) -- Walmart (WMT) reported mixed results for the 2017 third quarter on Thursday morning, as the company continues to invest in its e-commerce business to compete head-to-head with Amazon.com (AMZN). 

Walmart's quarterly revenue rose by 0.7% year-over-year to $118.2 billion, but missed expectations of $118.8 billion. Earnings came in at 98 cents per share, topping estimates for 96 cents per share.

The "key message" from Walmart's earnings over the past year is that it's working on a long-term plan to compete with Amazon.com, J.P. Morgan retail analyst Chris Horvers said on CNBC's "Power Lunch" on Thursday afternoon. "So we care about you shareholders, but we care about the next 50 years much more and we're going to spend a lot of money so that we're relevant over the long term."

As for what Walmart shareholders should do with the stock, the firm has maintained its "neutral" rating on it, he noted. 

Going forward, two retail companies that are "must own" stocks are Advance Auto Parts (AAP) and Ulta Cosmetics (ULTA) because they are expected to see accelerated comp growth into 2017, Horvers advised. 

(Amazon.com is held in the Growth Seeker portfolio. See all of the holdings with a free trial.)

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings team rates Walmart as a Buy with a ratings score of B. This is driven by a number of strengths, which the team believes should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks the team covers.

You can view the full analysis from the report here: WMT

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