Walmart Stock (WMT) Burns Brighter Despite Recall of Deadly Tabletop Fireplaces

Shares in retail giant Walmart (WMT) heated up today despite having to recall Tabletop Fireplaces because of the risk of serious or fatal burns to users.

What is the Product Recall?

The U.S. Consumer Product Safety Commission (CPSC) is warning consumers to stop using Northlight Bio Ethanol Portable Tabletop Fireplaces immediately because using them can result in uncontrolled pool fires where flames burn across the surface of pooled or spilled alcohol, as well as flame jetting from fuel containers, resulting in serious or fatal burns.   

The Northlight Bio Ethanol Portable Tabletop Fireplaces are round, square, or rectangular containers that require consumers to pour liquid fuel into the container and then ignite the pooled liquid in the same location it was poured. 

Isopropyl (rubbing) alcohol, ethanol/bioethanol, and similar liquid fuels can burn with flame temperatures over 1,600°F and can cause third degree burns in less than one second.  Igniting a pool of alcohol or other liquid fuel in the fire pit’s open container can result in an uncontrolled pool fire, which can suddenly produce larger, hotter flames that can spread beyond the fire pit product.  

The CPSC is urging consumers to stop using the tabletop fireplaces immediately and dispose of them.  

Key Walmart Risks

The products were sold online at NorthlightSeasonal.com and other retailers such as Walmart.com, for about $35 to $90.  

Although the fireplaces were not manufactured by Walmart, recalls such as these matter to the company because selling dangerous products can damage the company’s finances and reputation. This is why the ability to sell is a key risk when investing in a retail stock – see below:

Is Walmart a Good Stock to Buy Now?

On TipRanks, WMT has a Strong Buy consensus based on 29 Buy and 2 Hold ratings. Its highest price target is $150. WMT stock’s consensus price target is $140.08, implying a 7.31% upside.