Shares in U.S. retail giant Walmart (WMT) were lower today despite one media personality declaring that it was a buying opportunity.
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Ideal Buy
Jim Cramer, the host of Mad Money on CNBC, didn’t exactly wow his audience by declaring that Walmart was the number one brick-and-mortar retailer, but what he said next will have pricked up some ears.
This is what Cramer said:
“This is a slow time for Walmart stock, but Lang (Bob Lang, founder of explosiveoptions.net and the author of Know Your Options) says that makes it the ideal time to buy the stock. The price action here has been sideways, with the stock stuck in the range of $93 to $100 for the last few months. Lang thinks that Walmart’s simply digesting its big move up from the April lows. That makes some sense to me. It was a gigantic gain. He’d be a buyer on weakness.”
Let’s look at the Walmart stock price chart for the last few months. We can see that since the start of the year, the stock is up just 5%. Over the last three months it is up around 4%.
Tech and Tools
It’s been a challenging period for the stock and other consumer-facing peers. That’s down to price rises as a result, arguably, of President Trump’s tariff policies as well as having to handle a drop in consumer sentiment.
It is also facing increased competition from the more premium end of the grocery and food market as, despite the challenges, shoppers look for more premium alternatives such as Amazon’s (AMZN) Whole Foods.
Walmart has also been making moves to attract more rural shoppers as well as increasing its technological capabilities. This includes the use of drones and AI tools for shoppers.
The forecasts for the business look positive, but investors need to be wary of those macro economic challenges and the continued uncertainty around tariffs.
Is WMT a Good Stock to Buy Now?
On TipRanks, WMT has a Strong Buy consensus based on 28 Buy ratings. Its highest price target is $120. WMT stock’s consensus price target is $111.33, implying a 17.44% upside.
