Walmart Drops 18% From May Peak as Cramer Calls Shares a Buying Opportunity
Updated
Updated · CNBC · Jul 7
Walmart Drops 18% From May Peak as Cramer Calls Shares a Buying Opportunity
2 articles · Updated · CNBC · Jul 7
Summary
Roughly 18% off its May 19 record close, Walmart has become one of the market's most compelling large-cap buys, Jim Cramer said after a sell-off tied to first-quarter margin worries.
Falling oil and gasoline prices have eased one of the biggest concerns behind Walmart's outlook, while Cramer said a weaker consumer backdrop should push more shoppers toward the retailer's value offering.
Tuesday's price cuts across food, beverages, outdoor living, toys and apparel support that thesis, with Cramer arguing Walmart can benefit as consumers trade down.
Tariff refunds could add another upside catalyst: CFO John David Rainey said any refunds are not in current guidance and could either lift results or fund further customer discounts.