Jim Cramer’s Latest Portfolio: 10 Stocks to Buy and Sell

3. Walmart Inc (NYSE:WMT)

Number of Hedge Fund Investors: 88

Jim Cramer was recently asked about Dollar Tree. He instead pitched Walmart and Costco as better companies. Cramer has been praising Walmart for offering affordable prices to customers during the inflationary crisis.

“We believe the company is in the early stages of an unprecedented profit growth acceleration for a large and mature retailer,” Piper Sandler recently said, setting a $81 price target on the stock.

Walmart shares are trending after the company threw it out of the park with its latest quarterly results and upped its full-year outlook, crushing all recession-related fears.  Walmart executives noted no signs of weakness in August, with narrowing e-commerce losses and an uptick in high-income shoppers. CFO John Rainey said while cautious, Walmart isn’t forecasting a recession, and the back-to-school season is off to a strong 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 sees continued upside potential, citing strong traffic and improving e-commerce, with automation and AI likely to play key roles.

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 expects 9% EPS growth for Walmart is fiscal 2025, potentially followed by 10% and 12% in FY2026 and FY2027, respectively.

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.