We recently published a list of Jim Cramer’s Latest Portfolio: Top 10 Stocks in July. Since Walmart Inc (NYSE:WMT) ranks 6th on the list, it deserves a deeper look.
Jim Cramer in a fresh episode of “Mad Money” on CNBC said that while investing isn’t easy, it’s made even more difficult by “authentic Wall Street gibberish” and “arcane technology.” Cramer said that there’s an “entire industry” in Wall Street wanting people to think that investing is hard and “ordinary people” cannot do it on their own. Cramer said that many people in the financial industry are just “after your fees” and they aren’t interested in making money from original investing. Cramer said that hedge fund managers and mutual funds make investing look inaccessible and impenetrable.
Cramer said that he’s “pulling back the curtain” and emphasized that investing isn’t “rocket science” or “brain surgery” and you don’t need to go to a business school to understand it. Cramer pitched himself as a “coach” or a “translator” who can explain the meaning of complex financial terms to ordinary people.
“You can comprehend all the mystical-sounding vocabulary we throw around here as long as you have a translator, a coach like me, who can explain what the darn words mean.”
For this article we watched several latest programs of Jim Cramer aired on CNBC and picked 10 stocks he’s talking about. With each company we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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Walmart Inc (NYSE:WMT)
Number of Hedge Fund Investors: 88
Highlighting a latest analyst note on Walmart Inc (NYSE:WMT) by Piper Sandler, Jim Cramer said that Walmart is going to be the first retail company that becomes an ecommerce company. Cramer said Walmart Inc (NYSE:WMT) is trading at 28 times earnings despite its strong performance this year (+36%).
“If you ever were to go with me to a Walmart store you’d say oh my god it’s high fashion for $9,” Cramer said.
Asked whether he’s still positive about the stock despite its strong performance this year, Cramer said:
“I absolutely do.”
Cramer also said that Walmart Inc (NYSE:WMT) could join the “trillion-dollar club.”
Cramer was referring to the Piper Sandler note in which the firm initiated coverage of WMT with an Outperform rating, saying the stock rally can continue.
“We believe the company is in the early stages of an unprecedented profit growth acceleration for a large and mature retailer,” Piper Sandler said, setting a $81 price target on the stock.
Walmart is no longer just a retailer with big stores. Omnichannel retail, ecommerce growth and ads business are the new growth catalysts for Walmart. Wall Street expect 9% EPS growth for Walmart is fiscal 2025, potentially followed by 10% and 12% in FY2026 and FY2027, respectively. In the recently-reported quarter, Walmart’s ads revenue jumped 24%, driven by Walmart Connect’s 26% growth in the U.S. and 27% growth internationally.
During the NYSE/Bank of America London Investor Conference, Walmart said that it expects revenue growth of 4% per year over the next five years, while operating income is expected to rise 8% per year.
Overall, Walmart Inc (NYSE:WMT) ranks 6th on Insider Monkey’s list titled Jim Cramer’s Latest Portfolio: Top 10 Stocks in July. While we acknowledge the potential of Walmart Inc (NYSE:WMT), our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than Walmart Inc (NYSE:WMT) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
