Retail giant Walmart (WMT) has been forced to recall thousands more radioactive shrimp from its shelves in the U.S.
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Frozen Shrimp
The U.S. Food and Drug Administration said over 26,000 packages of AquaStar (USA) Corp Cocktail Shrimp sold at Walmart stores have been impacted. These were sold in the refrigerated sections of Walmart in over 20 states between July 31 and August 16.
Last month the FDA asked Walmart and other retailers to pull three lots of Great Value brand frozen shrimp from stores. This was after detecting Cesium-137, a radioactive isotope, in shipping containers and a sample of shrimp from Indonesia.
The products could pose a “potential health concern” for people exposed to low levels of Cesium-137 over time, FDA officials said at the time.
Cesium-137 is a byproduct of nuclear reactions, including nuclear bombs, testing, reactor operations and accidents. It’s widespread around the world, with trace amounts found in the environment, including soil, food and air.
While there have been no illnesses reported to date—and no shrimp sold in the U.S. has tested positive for Cs-137—the FDA has warned that doesn’t mean the shrimp is free from radioactive elements. Therefore, the FDA is concerned about the long-term effects caused by eating the contaminated shellfish, as even small doses of radiation can lead to an elevated risk of cancer or acute radiation syndrome.
Key Risk
These continuing recalls matter to Walmart because selling dangerous products can damage the company’s finances and reputation. It is why it is a key risk when investing in a retail stock.
Other Walmart product recalls this year include faulty water bottles which caused two people to go blind, and kids’ bikes which could lead to lead poisoning.
Is WMT a Good Stock to Buy Now?
On TipRanks, WMT has a Strong Buy consensus based on 29 Buy ratings. Its highest price target is $127. WMT stock’s consensus price target is $113.89, implying a 17.44% upside.
