Retailers' Walmart Inc. (NASDAQ:WMT) and Target Corporation (NYSE:TGT)'s shares are on two opposite spectrums when it comes to year-to-date performance. The latter's stock is down by 8% whole the latter is up by 64%. Cramer discussed the divergence between the two stocks and outlined that while he believed Walmart Inc. (NASDAQ:WMT)'s share price troubles had led to as tock that was too cheap, he didn't think the shares could drop further in terms of valuation:
"The one that I want to. . .I think Walmart is, I think you buy it and then you buy it after. Because we have not seen, Walmart does have a high PE, but I think it's worthy of it.
"I know that John Furner's unproven, as CEO. But I would say that Mr. McMillan, I love him and I think he's taught him well. And you still have John David Rainey there. I just feel like this is the stock that has already come down. I don't think it's going to get to a 20 PE ever again, I think it's got too much growth. But I recognize, it's unloved, it's only up 2.5%, everyone loves Target. And I do like the new management of Target and the comparisons are very easy. But Target's up 57%, 18 times earnings. . ."
Walmart Inc. (NASDAQ:WMT)'s shares haven't had a good week. They closed a painful 9% lower on August 20th after it reported its earnings in the morning. Had viewers bought the shares on Cramer's remarks, they would have missed an opportunity to utilize a major dip that occurred later in the week, as he had made the remarks on the 17th. The central theme for Walmart Inc. (NASDAQ:WMT), following the earnings, is whether the firm's gains in the online segment will transform into sustainable gains for the income statement. Starting from the basics, the firm beat ***** yst revenue and earnings estimates for its fiscal Q2.
While revenue in Q2 grew by 5.9%, Walmart Inc. (NASDAQ:WMT)'s global eCommerce sales jumped by 23% to significantly outpace revenue growth. More importantly, the firm also claimed that 50% US marketplace volume was through its fulfilment services. Additionally, media reports have also suggested that Walmart Inc. (NASDAQ:WMT) has managed to grow its digital advertising business by 26% annually to further complement its online growth. Yet, at the same time, the firm's status as a brick-and-mortar retailer generates worries about the impact of a consumer slowdown on the business. Walmart Inc. (NASDAQ:WMT)'s Q3 guidance for revenue growth and EPS undershot ***** yst estimates. Additionally, the firm also warned about $2 billion in incremental fuel costs in FY2027 and a dip in free cash flow.
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"The one that I want to. . .I think Walmart is, I think you buy it and then you buy it after. Because we have not seen, Walmart does have a high PE, but I think it's worthy of it.
"I know that John Furner's unproven, as CEO. But I would say that Mr. McMillan, I love him and I think he's taught him well. And you still have John David Rainey there. I just feel like this is the stock that has already come down. I don't think it's going to get to a 20 PE ever again, I think it's got too much growth. But I recognize, it's unloved, it's only up 2.5%, everyone loves Target. And I do like the new management of Target and the comparisons are very easy. But Target's up 57%, 18 times earnings. . ."
Walmart Inc. (NASDAQ:WMT)'s shares haven't had a good week. They closed a painful 9% lower on August 20th after it reported its earnings in the morning. Had viewers bought the shares on Cramer's remarks, they would have missed an opportunity to utilize a major dip that occurred later in the week, as he had made the remarks on the 17th. The central theme for Walmart Inc. (NASDAQ:WMT), following the earnings, is whether the firm's gains in the online segment will transform into sustainable gains for the income statement. Starting from the basics, the firm beat ***** yst revenue and earnings estimates for its fiscal Q2.
While revenue in Q2 grew by 5.9%, Walmart Inc. (NASDAQ:WMT)'s global eCommerce sales jumped by 23% to significantly outpace revenue growth. More importantly, the firm also claimed that 50% US marketplace volume was through its fulfilment services. Additionally, media reports have also suggested that Walmart Inc. (NASDAQ:WMT) has managed to grow its digital advertising business by 26% annually to further complement its online growth. Yet, at the same time, the firm's status as a brick-and-mortar retailer generates worries about the impact of a consumer slowdown on the business. Walmart Inc. (NASDAQ:WMT)'s Q3 guidance for revenue growth and EPS undershot ***** yst estimates. Additionally, the firm also warned about $2 billion in incremental fuel costs in FY2027 and a dip in free cash flow.
#NASDAQ
2 months ago
