10 Stocks On Jim Cramer’s Mind & His Thoughts On Enterprise AI

2. Walmart Inc. (NASDAQ:WMT)

Number of Hedge Fund Holdings: 104

Mega retailer Walmart Inc. (NASDAQ:WMT)’s shares are up by 29% over the past year and by 9% year-to-date. The firm reported its fiscal second-quarter earnings earlier this week. During the quarter, Walmart Inc. (NASDAQ:WMT) earned $190.66 billion in revenue and $0.74 in earnings to beat analyst estimates of $190.43 billion and $0.73. Ahead of the earnings, Rothschild Redburn had raised Walmart Inc. (NASDAQ:WMT)’s share price target to $150 from $110 and kept a Buy rating on the shares. Some of the reasons behind the optimism were the firm’s digital initiatives, which it believes could propel growth on the back of AI. Telsey also discussed Walmart Inc. (NASDAQ:WMT)’s shares in February. It reiterated a Buy rating and a $135 share price target. Cramer has been a long-time proponent of the shares as he believes that not only is Walmart Inc. (NASDAQ:WMT) effectively competing with Amazon in the eCommerce industry, but also due to the firm’s ability to keep prices lower for consumers. Ahead of the earnings, he remarked that the earnings miss would be devastating:

“People are saying that Walmart might miss, DA Davidson, that would be devastating.”

Following the earnings, he didn’t hold back on the praise for Walmart Inc. (NASDAQ:WMT) and tweeted:

“This Walmart quarter was a thing of beauty with advertising and membership fees soaring, hence why you could get such a premium price-to-earnings multiple”