2. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 95
Cramer likes Walmart Inc. (NYSE:WMT) and highlighted the company’s various strategies including low-priced products, wage hike, and more. Here’s what he had to say:
“I like Walmart… These retailers have done tremendous work pushing back against inflation by using their scale to push costs down then passing on the savings to you, the customer. Neither candidate can mess with that proposition. Walmart’s tried to hold the line on prices in all sorts of aisles, but especially the food aisle. Have you seen these $5 selections? They have, it’s called the Great Value Offerings. They’re incredibly cheap and particularly loved. No, the stock itself’s not cheap. But ever since Walmart upped its game by improving wages, giving managers more discretion for what their stores carry, and sneaking high fashion in the $15, I’m not kidding, the $15 aisle, oh, it has been a huge win…
All three of these retailers work. Even if President Trump installs high tariffs, none has any meaningful foreign exposure that can hurt them even as they all have overseas operations.”
Walmart (NYSE:WMT) operates a global retail and eCommerce business, offering a wide range of products, including groceries, health and wellness items, home goods, apparel, electronics, and private label merchandise. Its size and scale give it a competitive edge, enabling it to maintain its position as one of the largest retailers in the world. According to Walmart U.S. CEO John Furner, more than two-thirds of the company’s annual product spend is directed toward goods that are either made, grown, or assembled in America.
This focus on domestic sourcing has been a key element of the company’s business strategy, particularly in recent years. Walmart (NYSE:WMT) market presence is strengthened by its ability to offer competitive prices across a broad range of categories, something that has been central to its success. The company has consistently made strides in driving value for customers, and its pricing power is amplified by its sheer size.
This has allowed the company to keep costs lower than many other competitors in the retail space, making it a go-to destination for both budget-conscious shoppers and bargain-seeking upper-income households.
Management has pointed out that, in recent months, these customers have been increasingly frequenting its stores, contributing to the company’s growth in market share within the retail industry. This trend is particularly evident in categories such as hardlines, home goods, and fashion, where Walmart U.S. has seen significant sales growth in the most recent period.
Additionally, the company has invested in services designed to improve convenience for its customers. For example, the company offers free delivery on orders over $35 for members of its Walmart+ program, a service that aims to enhance the overall shopping experience and add value for frequent shoppers.
