We recently compiled a list of the Jim Cramer Says These 10 Stocks Can Do Well Regardless of Who Wins. In this article, we are going to take a look at where Walmart Inc. (NYSE:WMT) stands against the other stocks in Jim Cramer’s current watchlist.
Jim Cramer, the host of Mad Money, recently shared his thoughts on stocks that could perform well regardless of who ends up running the White House. On Tuesday, Cramer observed that the day’s market performance gave the impression that every stock could go higher no matter who secures the presidency.
He pointed to significant gains across various sectors, including aerospace, housing, retail, and healthcare. Cramer noted that this broad-based rally resulted in strong performances on Tuesday, with the Dow climbing 427 points, the S&P rising by 1.23%, and the NASDAQ soaring by 1.43%. However, he tempered his optimism by adding that days like Tuesday might prove to be outliers in the coming weeks.
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Cramer took the opportunity to highlight ten stocks he believes will thrive and said:
“I want to highlight ten stocks that I believe will do well under either candidate, a who’s who of acclamation, companies that almost have to do well because of seismic trends and savvy managements. Companies that no White House would get hung up on, either because they’re beneath notice or they’re perceived as good corporate citizens by both sides. Stocks in industries that neither Trump nor Harris have ever targeted in the past.”
He also raised an important question for the viewers: “If you had the results of the election in hand, would you really know what to buy or sell?” According to Cramer, answering that question is far more complicated than it seems. He emphasized his list of stocks that can thrive regardless of the election outcome. These are companies that have no clear political adversaries in Washington, making them relatively safe bets. Cramer acknowledged, however, that many stocks that seem like obvious picks for one candidate or another often have hidden dynamics that don’t get enough attention.
“In the end, this presidential prognostication game is meaningless until we start hearing about cabinet appointments, those will tell us a lot. Then, we can figure out really who the winners and losers are. Right now, though, there are just too many political angles to every single stock story.”
Our Methodology
For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during the episode of Mad Money on November 5. We listed the stocks in ascending order of their hedge fund sentiment as of the second quarter, which was taken from Insider Monkey’s database of more than 900 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A manager standing in a hypermarket, pointing out items available for wholesale.
Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 95
Cramer likes Walmart Inc. (NYSE:WMT) and highlighted the company’s various strategies including low-priced products, wage hike, and more. Here’s what he had to say:
“I like Walmart… These retailers have done tremendous work pushing back against inflation by using their scale to push costs down then passing on the savings to you, the customer. Neither candidate can mess with that proposition. Walmart’s tried to hold the line on prices in all sorts of aisles, but especially the food aisle. Have you seen these $5 selections? They have, it’s called the Great Value Offerings. They’re incredibly cheap and particularly loved. No, the stock itself’s not cheap. But ever since Walmart upped its game by improving wages, giving managers more discretion for what their stores carry, and sneaking high fashion in the $15, I’m not kidding, the $15 aisle, oh, it has been a huge win…
All three of these retailers work. Even if President Trump installs high tariffs, none has any meaningful foreign exposure that can hurt them even as they all have overseas operations.”
Walmart (NYSE:WMT) operates a global retail and eCommerce business, offering a wide range of products, including groceries, health and wellness items, home goods, apparel, electronics, and private label merchandise. Its size and scale give it a competitive edge, enabling it to maintain its position as one of the largest retailers in the world. According to Walmart U.S. CEO John Furner, more than two-thirds of the company’s annual product spend is directed toward goods that are either made, grown, or assembled in America.
This focus on domestic sourcing has been a key element of the company’s business strategy, particularly in recent years. Walmart (NYSE:WMT) market presence is strengthened by its ability to offer competitive prices across a broad range of categories, something that has been central to its success. The company has consistently made strides in driving value for customers, and its pricing power is amplified by its sheer size.
This has allowed the company to keep costs lower than many other competitors in the retail space, making it a go-to destination for both budget-conscious shoppers and bargain-seeking upper-income households.
Management has pointed out that, in recent months, these customers have been increasingly frequenting its stores, contributing to the company’s growth in market share within the retail industry. This trend is particularly evident in categories such as hardlines, home goods, and fashion, where Walmart U.S. has seen significant sales growth in the most recent period.
Additionally, the company has invested in services designed to improve convenience for its customers. For example, the company offers free delivery on orders over $35 for members of its Walmart+ program, a service that aims to enhance the overall shopping experience and add value for frequent shoppers.
Overall WMT ranks 2nd on Jim Cramer’s list of stocks that can do well regardless of who wins. 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. 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 the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.