Walmart Inc. (NYSE: WMT) drew pointed commentary from CNBC’s Jim Cramer, who told investors the stock’s recent slide represented an overreaction by the market.
Cramer flagged that Walmart had at one point fallen 5% in a single session, ultimately closing down 3.9% and slipping into negative territory for the year.
He offered a direct take on the prevailing bearish thesis, suggesting that lower oil prices would reduce consumer reliance on Walmart’s value proposition.
“The thesis here is that oil’s come down and gasoline will follow, so consumers will no longer need to shop at Walmart to save money,” Cramer said. “I think that’s nonsense.”
Cramer acknowledged the valuation challenge, noting the stock trades at around 37 times earnings, but argued the 26-point drop from its highs had gone too far.
“That feels excessive to me,” he said, adding that the decline in rival retailer TJX was similarly overdone.
The comments were not the first time Cramer had defended Walmart during its recent stretch of weakness, having previously addressed the stock following a sharp post-earnings selloff.
After Walmart reported quarterly results in late May, the stock tumbled 7.2%, despite the company matching expectations for U.S. same-store sales growth of 4.1% and delivering an 8% year-over-year earnings increase.
Cramer described that reaction as disproportionate, noting that Walmart also edged out a small revenue beat and delivered inline earnings, yet still faced heavy selling pressure.
The stock’s refusal to raise its full-year forecast weighed on sentiment, with the guidance sitting below Wall Street’s estimates, even as management argued that reiterating prior guidance was a positive sign given elevated fuel costs.
Management also pointed to new pressure on the consumer, a message that unsettled investors even as the underlying business metrics remained relatively stable.
Cramer conceded that Walmart’s valuation is stretched relative to its growth rate, a factor that leaves the stock vulnerable when sentiment turns negative or guidance disappoints.
Despite those concerns, he maintained a constructive long-term view, describing the pullback as a rare buying opportunity for investors willing to look past near-term noise.
The broader context for Cramer’s remarks was a Wednesday market rotation, during which he advised viewers on which beaten-down names could benefit from shifting investor appetite.
Walmart operates a vast retail footprint spanning physical stores, warehouse clubs, and digital platforms, selling everything from groceries and electronics to apparel and home goods across its global network.
