Walmart Inc. (WMT) Is The Insurmountable Wall In Retail, Says Jim Cramer

We recently published a list of Jim Cramer Says Trump’s One Big, Beautiful Bill Is Pro Growth & Discusses These 12 Stocks. In this article, we are going to take a look at where Walmart Inc. (NYSE:WMT) stands against other stocks that Jim Cramer discusses.

Walmart Inc. (NYSE:WMT) is one of the biggest retailers in America. It is also a frequent feature of Cramer’s morning show. He believes that Walmart Inc. (NYSE:WMT) is the only brick-and-mortar retailer in America that can rely on its scale to fight any tariff-induced inflation in America. In fact, the firm’s scale and its warning that prices might rise due to tariffs has landed it in controversy recently after President Trump warned Walmart Inc. (NYSE:WMT) that he was watching the firm for price increases. Here are Cramer’s latest remarks about Walmart Inc. (NYSE:WMT):

“I am questioning, how well it’s doing. It’s not big enough. They’re not opening a lot of stores, it’s part of urban strategy that seemed just okay. There were issues even, you know, off of George Floyd, but they recovered very quickly. . . .But I think that that’s more, if you might show some others, yeah Walmart’s really good too, TJX is really good too.

“Go look at the prices, when I. . .would walk with Brian through a Target store, I said this is too high, this is too high, this one’s too high. Where is the 2019? How about 2019 prices? I know that right now Walmart’s got some 2019 prices.

“Look, when you put up a chart of Dollar Tree, Dollar General, not Dollar Tree. Dollar General, I think that if Target can really lower price, you can have a kind of a conversion of. . .

“I’ve gone over this with Brian many times. I think everyone loves to go to Target. They’ve got those great brands that are their own. They have to cut price, cut price, cut price. They have no choice. They have to cut price.

”By the way the retail group is total chaos today. I mean Home Depot’s back down, Lowe’s is down. I thought Lowe’s had a good quarter. Again Target, it’s not existential. They got a really good yield. They’re gonna figure it out. I’m just saying that you’re up against a wall here, and the wall is Walmart.”

A manager standing in a hypermarket, pointing out items available for wholesale.

In a recent Mad Money episode, Cramer had commented:

“Was Walmart really supposed to eat all the tariffs that had been put on the goods it carries? It sure sounds like it. Take a look at the President’s posting this weekend, ‘Walmart should STOP trying to blame tariffs as the reason for raising prices throughout the chain. Walmart made BILLIONS OF DOLLARS last year, far more than expected. Between Walmart and China, they should, as is said, EAT THE TARIFFS, and not charge valued customers ANYTHING. I’ll be watching and so will your customers’…

My understanding is that they negotiated the best deal possible on each item. The company then had to decide how much they could make on these goods when they sold them to their customer. Further, my understanding is that they tried to make it so other items that weren’t tariffed only saw their prices raise a little bit. They blended things to prevent a big increase in price for some specific heavily tariffed products. Good thinking…

I’m willing to wager that given Walmart has price leadership on pretty much every item it sells, the president would most likely end up posting that the other companies should cut their prices to as low as Walmart’s.”

Overall, WMT ranks 6th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of WMT, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than WMT and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.