We recently published a list of Jim Cramer’s latest portfolio: 10 stocks to buy and sell. With Walmart Inc (NYSE:WMT) ranking third on the list, the company deserves a closer look.
Jim Cramer again addressed last week’s stock market crash on a recent show, saying the notion that the general collapse was due to fear of a “hard landing” was “completely false.” Cramer said it had only to do with the Japanese stock market and the yen and “nothing more.”
“A number of asset managers have taken advantage of the opportunity to borrow against very low-interest Japanese bonds and thus have relatively free money to invest in stocks around the world, including here (in the U.S.),” Cramer said.
Jim Cramer said small-cap stocks are “trying to come back.” However, he pointed out a “problem” with the small-cap rally. He said no one was actually buying individual small-cap stocks, but was instead stocking up on ETFs. According to Cramer, investors “walked away” when the broader market faltered.
For this article, we looked at the latest shows about Cramer that aired recently on CNBC and picked 10 stocks he talks about. For each company, we mentioned the number of hedge fund investors. Why do we care about the stocks hedge funds invest in? The reason is simple: Our research has shown that we can outperform the market by mimicking the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks each quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (Further details can be found here).
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Walmart Inc (NYSE:WMT)
Number of hedge fund investors: 88
Jim Cramer was recently asked about Dollar Tree. Instead, he touted Walmart and Costco as better companies. Cramer praised Walmart for offering affordable prices to its customers during the inflation crisis.
“We believe the company is in the early stages of an unprecedented acceleration in earnings growth for a large and established retailer,” Piper Sandler recently said of WMT, setting an $81 price target on the stock.
Walmart shares are trending higher after the company hit home with its latest quarterly results and raised its full-year forecast, quashing any recession fears. Walmart executives noted no signs of weakness in August, with e-commerce losses declining and the number of high-income shoppers increasing. Chief Financial Officer John Rainey said Walmart is cautious but does not expect a recession and the back-to-school season is off to a good start.
Morgan Stanley’s Simeon Gutman highlighted solid comparable sales growth and better-than-expected EBIT growth, driven by core and alternative profit streams. Jefferies’ Corey Tarlowe continues to see upside potential, citing strong traffic and improved e-commerce, with automation and AI likely to play a key role.
Walmart is no longer just a big-box retailer. Omnichannel retail, e-commerce growth and advertising business are the new growth catalysts for Walmart. Wall Street expects Walmart’s EPS growth of 9% in fiscal 2025, followed by 10% and 12% in fiscal 2026 and 2027, respectively.
During the NYSE/Bank of America London Investor Conference, Walmart said it expects sales to grow 4% annually over the next five years, while operating profit is expected to grow 8% annually.
Overall, Walmart Inc (NYSE:WMT) ranks 3rd on Insider Monkey’s list titled “Jim Cramer’s Latest Portfolio: 10 Stocks to Buy and Sell.” While we recognize Walmart Inc’s (NYSE:WMT) potential, we believe AI stocks promise higher returns and do so in a shorter period of time. If you’re looking for an AI stock that’s more promising than WMT but worth less than 5x its earnings, read our report on the cheapest AI stock.
READ MORE: Analyst sees a new $25 billion “opportunity” for NVIDIA And Jim Cramer recommends these stocks.
Disclosure: None. This article was originally published on Insider Monkey.
