Jim Cramer: "Walmart (WMT), a Rare Buying Opportunity"

▲ Walmart (WMT)/AI-generated image

After Walmart (WMT) stock plunged 7.2% immediately following its earnings announcement, CNBC Mad Money host Jim Cramer evaluated it as a “rare buying opportunity.” He believes that unlike the market's harsh sell-off, Walmart's core performance has not collapsed.

According to U.S. economic news outlet CNBC on July 7 (local time), Cramer pointed out that Wall Street aggressively sold off Walmart shares after the earnings announcement. Regarding Walmart's stock decline, he said, “I think the drop was excessive.”

Walmart's stock fell 7.2% immediately after the earnings announcement. U.S. same-store sales increased by 4.1%, meeting market expectations. Revenue slightly exceeded market forecasts, and profit met expectations, growing 8% year-over-year.

The part that investors took issue with was the annual outlook. Walmart did not raise its existing annual outlook, which was below Wall Street's forecasts. Management explained that maintaining the current outlook should be viewed positively given high fuel prices, but investor sentiment was shaken by mentions of increased consumer burden.

Cramer acknowledged that Walmart's stock value is expensive when compared to its long-term growth rate. However, he stated, “I think Walmart is fine in the long run,” and added, “I see this decline as a rare buying opportunity.”

[Article Key Summary]

-Walmart's stock plunged 7.2% immediately after its earnings announcement, but Cramer assessed the drop as excessive.

-Walmart's U.S. same-store sales increased by 4.1%, and profit grew 8% year-over-year.

-Cramer positively evaluated Walmart's long-term outlook, calling this stock decline a “rare buying opportunity.”

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