Jim Cramer on Walmart (WMT): "They have pricing power" - Buy the Dip on Retail's Strongest Player

We recently published a list of Jim Cramer’s Thoughts on These 7 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.

On Thursday, Jim Cramer, host of Mad Money, discussed the recent rally in the market, which followed several days of significant losses. He attributed the rebound to a combination of strong earnings reports and the White House’s measured approach.

“If you know how to bowl, you made a killing today because we had some of the best pin action off earnings that I’ve seen in ages. It was pure joy as we watched one lead pin after another slash and slam the sticks behind it. Kaboom. Strike after strike after strike. Throw in total radio silence from the White House on anything business-related, and you end up with a nice powerful rally.”

READ ALSO Jim Cramer Put These 16 Stocks Under a Microscope and Jim Cramer Recently Talked About These 15 Stocks

Cramer acknowledged that several factors contribute to a rally of such a magnitude, including an initial sense of despair that can act as a catalyst. He recalled that just the previous Monday, the White House had reached a new low point when President Donald Trump publicly criticized Jerome Powell, the chairman of the Federal Reserve, someone who commands widespread respect on Wall Street. He added:

“So when the president did the unthinkable, at least for him, and he backed off, saying he had no plans to fire Powell, he gave us the fuel we needed for a spectacular rally.”

In addition, Cramer pointed out that some positive news came from an unexpected source, corporate earnings. Cramer enthused that the earnings stood in stark contrast to the pessimism surrounding the economy, especially from the usual bear-leaning hedge fund managers, who had been predicting a recession. He noted that these individuals had warned that companies would soon show signs of significant trouble when their earnings reports came in. Instead, the opposite occurred, with many companies exceeding expectations, adding to the rally.

“Here’s the bottom line: When the White House is dignified or at least silent at the same time that the PRC goes all WWE, while our Jimmy Stewart of the Fed chief gets back to being unsoiled, well then, ladies and gentlemen, that’s a bowler’s bull market. Beware of flying pins, everybody, because the balls are rolling fast and furious, and I don’t see anything that could be left standing.”

Our Methodology

For this article, we compiled a list of 7 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on April 24. We listed the stocks in ascending order of their hedge fund sentiment as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 hedge funds.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Walmart Inc. (NYSE:WMT)

Number of Hedge Fund Holders: 116

Walmart Inc. (NYSE:WMT) was mentioned during the episode, and here’s what Cramer had to say:

“Okay, your stock’s down 10. Now admittedly, it’s up 10 from where it was just a couple of days ago, but I tell you, if I wanted to buy the stock, I’d put a little on here and then wait for… someone to talk about tariffs, let it come down and then do some buying for the rest of it.”

Walmart (NYSE:WMT) is a retail business that sells many types of products, including groceries, health supplies, electronics, clothing, and items under its own brand. On April 4, appearing on Squawk on the Street, Cramer said:

“Walmart pulls its operating income guidance for the current quarter. […] People thought they were going to guide down. I heard many people tell me last night, boy, are you ready for Walmart’s big guide down? […]

[after listening to the company’s CEO giving a positive outlook] It’s rather extraordinary to have a level of confidence from the largest retailer. And Doug McMillan should be applauded.

[talking about how the largest retailers have pricing power] And they have power. They have pricing power. And they can make the Japanese, look, the Chinese right now, here’s what they’re saying: we can’t go up against Walmart; we can’t!”

Overall, WMT ranks 2nd on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of WMT as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than WMT but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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