After a 2017 rally, Walmart Inc (NYSE: WMT ) stock has seemingly run out of steam in 2018. Analysts, however, see several reasons why long-term investors should consider the stock's 11 percent decline a buying opportunity.

On Thursday, Argus Research senior analyst Christopher Graja upgraded Walmart to a "buy" rating and listed three bullish catalysts for the stock in 2018. First, Graja said a robust job market and rising wages are good news for Walmart.

"We believe that an improving job market should help low- and middle-income shoppers to spend more," Graja says.

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In addition, he says rising interest rates and a flattening U.S. Treasury yield curve could soon drive investors away from high-growth stocks and into high-quality names like Walmart . Graja says Walmart's operating efficiency, its stellar credit ratings and its long-term track record of dividend hikes make the stock one of the safest bets in the market. Walmart's current dividend yield is 2.4 percent, but the retailer has raised its dividend through thick and thin every year since 1974. In the past five years, its average annual dividend hike was 4.3 percent.

The third reason Graja loves Walmart is because the stock is cheap. WMT stock is down about 20 percent from its 2018 peak, and it currently trades at roughly a 10 percent earnings multiple discount to the broader market.

Graja says Walmart management is making all the right moves to position the company to fend off online competition from Amazon.com, Inc. ( AMZN ) and potentially gain brick-and-mortar market share from other competitors.

"The company is lowering prices to drive traffic, managing its inventory more efficiently and focusing on store productivity rather than boosting square footage," Graja says.

Earlier this week, Bank of America analyst Robert Ohmes discussed a fourth reason to buy Walmart stock . A recent survey revealed that older millennials (ages 31 to 38) spend roughly twice as much on household items as younger millennials (ages 22 to 30). Walmart is the preferred retailer for household products for millennials of all ages, with millennials choosing Walmart over Amazon by nearly a two-to-one ratio.

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"Our survey indicated WMT is the preferred retailer for household items across all age demographics [over Amazon]," Ohmes said.

In addition to the "buy" rating, Argus has a $100 price target for Walmart. Bank of America has a "buy" rating and $120 target for WMT stock .

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