Jim Cramer Recommends Buying Walmart Stock
Jim Cramer advised buying Walmart stock despite its recent underperformance versus Target, which he credits to a new CEO's price-cutting strategy.
Jim Cramer told investors to buy Walmart stock during the September 3 episode of his show, Mad Money. He made the comment after a caller questioned why Walmart's shares have lagged behind rival Target's, despite widespread analyst support for Walmart.
Cramer said Walmart's stock was down 3% and that he wanted to buy it. He contrasted the retailer with Target, where a new CEO has energized the company. "Cut prices on 10,000 items. That's what they needed," Cramer said, according to the source. He described Target's stores as looking "absolutely terrific" but characterized Walmart as a "continually good company" that fails to generate excitement. His final advice was to "Buy some Walmart and put it away."
Walmart's Growth Versus Target's Turnaround
The two retail giants present contrasting narratives for investors. Walmart's growth is being driven by e-commerce, advertising, and membership programs, though its core U.S. Store sales have slowed. Target is showing signs of a sharper recovery under its new CEO, Michael Fiddelke, but must still prove this improvement is sustainable.
The latest financial results highlight the different stories. Walmart reported its fiscal second quarter of 2027 results, while Target reported its standard second-quarter figures.
| Metric | Walmart | Target |
|---|---|---|
| Revenue / Net Sales | $187.9 billion | $26.5 billion |
| Revenue Growth | 5.9% | 5.3% |
| Comparable Sales Growth | 2.6% (U.S. Only) | 3.8% |
| E-commerce / Digital Sales Growth | 23% (global) | 8.7% (comparable) |
| Advertising Revenue Growth | 38% | Not specified |
| Membership Fee Revenue Growth | 17% | Not specified |
| Store Traffic Growth | Not specified | 3.6% |
Walmart CEO John Furner stated the company would use a $2.9 billion tariff refund to invest in customer experience and prices. Target CEO Michael Fiddelke said consumers were responding strongly to the company's changes, including price cuts on over 10,000 items, but acknowledged the turnaround would take time.
Analyst Ratings Favor Walmart
Recent analyst calls remain more favorable toward Walmart than Target. On August 31, Tigress Financial analyst Ivan Feinseth reaffirmed a Buy rating on Walmart with a $155 price target. The firm cited Walmart's AI-driven platform transformation and multiple higher-margin growth opportunities.
Morgan Stanley maintained a Buy rating on Walmart with a $125 target on August 24. Its research pointed to resilient Walmart+ growth and expanding digital scale as factors supporting long-term earnings power.
Analyst coverage of Target is more balanced. Bernstein analyst Zhihan Ma reiterated a Hold rating and a $154 price target on September 4. Goldman Sachs analyst Kate McShane also maintained a Hold rating on August 24 with a $161 target. Goldman's research cited sentiment recovery and ongoing cost pressures as reasons Target's risk-reward profile remains balanced.
