Walmart (WMT) shares opened in the red on Thursday after the retail behemoth reported slightly weaker-than-expected revenue for its fiscal Q1.
Investors are concerned also because the company said higher tariffs under President Donald Trump will cause it to raise prices starting later this month.
Despite today’s decline, Walmart stock is up 20% vs. its year-to-date low.
There Was Still a Lot to Like in Walmart’s Q1 Earnings Release
While the retailer’s sales came in just shy of Street estimates in the first quarter, there was enough in its earnings report that inspires confidence in owning WMT shares in 2025.
For starters, the company’s e-commerce business both in the U.S. and internationally turned profitable for the first time in Q1, indicating Walmart is catching up to the industry leader – Amazon (AMZN).
Plus, despite tariff headwinds, the NYSE-listed firm stood by its guidance for sales growth of up to 4% this year, which is roughly in line with its average annual revenue growth rate over the past 10 years.
Note that Walmart stock is attractive at current levels also because it pays a dividend yield of nearly 1%.
Jim Cramer Shares His View on WMT Stock
Famed investor Jim Cramer remains bullish on Walmart shares despite a revenue miss in Q1 as a sizable chunk of its profit came from advertising, which is significant given it’s often touted as a high-margin business.
On CNBC, the former hedge fund manager favored buying WMT on the pullback also because it has a “great balance sheet” that a number of its industry peers currently lack.
According to Cramer, the big-box retailer has very strong ties with its suppliers, which position it well to navigate the ongoing tariffs-related headwinds as well.
All in all, he’s convinced that WMT stock will reclaim its post-earnings decline over the next few days.
Wall Street Is in Sync With Cramer on Walmart Shares
Investors should note that Wall Street agrees with Cramer’s bullish view on Walmart stock as well.
The consensus rating on WMT currently sits at “Strong Buy” with the mean target of about $108 indicating potential upside of nearly 13% from current levels.
