Jim Cramer Wants You to Watch Out For These 10 Stocks

1. Walmart Inc. (NYSE:WMT)

Number of Hedge Fund Investors: 95

Jim Cramer noted that Walmart Inc. (NYSE:WMT)’s recent decision to sell its $3.7 billion stake in Chinese online retailer JD.com Inc. (NASDAQ:JD) is surprising, especially given that Walmart Inc. (NYSE:WMT) will still maintain its partnership with JD.com Inc. (NASDAQ:JD). Despite this, Walmart Inc. (NYSE:WMT)’s own stock saw a 1% increase.

“Walmart blew out of its $3.7 billion stake in Chinese online retailer JD.com. However, the American retail giant will continue the partnership. Strangest thing: The move knocked JD.com stock down 8%. It’s making me think that perhaps the whole market in China is wildly inflated. Walmart shares rose 1%.”

Walmart Inc. (NYSE:WMT) is an attractive investment due to its strong position as a leading global retailer with a wide reach in both physical stores and e-commerce. Walmart Inc. (NYSE:WMT) has significantly grown its online business, with e-commerce revenue jumping 37% in the latest fiscal year. Walmart Inc. (NYSE:WMT)’s ability to seamlessly integrate online and in-store shopping—through options like buy online, pick up in-store, and same-day delivery—improves customer convenience and drives sales.

Walmart Inc. (NYSE:WMT)’s large-scale and cost leadership are supported by its efficient supply chain and tech investments. Walmart Inc. (NYSE:WMT)’s ongoing expansion, including international moves like acquiring Flipkart in India, enhances its market presence and growth potential. Furthermore, Walmart Inc. (NYSE:WMT)’s commitment to returning value to shareholders through dividends and share buybacks underscores its financial stability and shareholder focus.

While we acknowledge the potential of Walmart Inc. (NYSE:WMT), our conviction lies in the belief that under the radar 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 NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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