Walmart's (WMT) Quarter Was Beautiful, Says Jim Cramer

We recently published 10 Stocks On Jim Cramer’s Mind & His Thoughts On Enterprise AI. Walmart Inc. (NASDAQ:WMT) is one of the stocks on Jim Cramer's mind.

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”

While we acknowledge the potential of WMT as an investment, 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 extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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