Walmart Inc. (NASDAQ: WMT) has drawn a fresh endorsement from CNBC’s Jim Cramer, even as Target Corporation (NYSE: TGT) captures investor attention with a notable turnaround under new leadership.
During the September 3 episode of Mad Money, a caller asked Cramer why Walmart’s stock had lagged behind Target despite widespread analyst preference for the retail giant.
Cramer responded directly, saying: “Well, Walmart’s now down 3%. I want to buy Walmart. But Target, see, the new CEO came in and he just kind of energized the place. Cut prices on 10,000 items. That’s what they needed.”
He continued: “The stores look absolutely terrific. Walmart’s just Walmart. And when you have one of the situations where it’s just a continually good company, no one gets excited about it.”
Cramer concluded his remarks with a clear directive: “I don’t care. Buy some Walmart and put it away, and I’ll be very happy with it, so will you.”
Walmart’s fiscal second quarter of 2027 delivered revenue of $187.9 billion, representing a 5.9% increase, with global e-commerce sales surging 23%, advertising revenue climbing 38%, and membership-fee revenue rising 17%.
U.S. comparable sales growth, however, came in at just 2.6%, marking the company’s weakest quarterly pace in six years, raising questions about domestic momentum at its core retail operation.
CEO John Furner said Walmart would deploy its $2.9 billion tariff refund toward customer experience and price investments, signaling continued commitment to long-term competitive positioning.
Target posted second-quarter net sales of $26.5 billion, a 5.3% increase, with comparable sales up 3.8%, traffic rising 3.6%, and digital comparable sales climbing 8.7% as price cuts across more than 10,000 items drew shoppers back.
Target CEO Michael Fiddelke acknowledged that consumers were responding strongly to the changes, while cautioning that the turnaround would take time to fully materialize across the business.
Wall Street’s analyst community remains more broadly constructive on Walmart, with Tigress Financial analyst Ivan Feinseth reaffirming a Buy rating and a $155 price target on August 31, citing AI-driven platform transformation and higher-margin growth opportunities.
Morgan Stanley also maintained a Buy rating on Walmart with a $125 target on August 24, pointing to resilient Walmart+ growth and expanding digital scale as key drivers of long-term earnings power.
Target’s analyst coverage tells a more cautious story, with Bernstein analyst Zhihan Ma reiterating a Hold rating and a $154 price target on September 4, while Goldman Sachs analyst Kate McShane maintained a Hold with a $161 target on August 24.
Walmart’s valuation remains a genuine risk factor, with the stock trading at 37.31 times forward earnings as of September 4, demanding continued execution on growth even as domestic comparable sales soften.
Target’s second-quarter EPS of $4.11 included a $1.65 benefit from tariff refunds, and while adjusted EPS still increased 20% year over year excluding that item, the headline figure flattered by the one-time contribution.
Hedge fund data tracked by Insider Monkey showed 111 funds held Walmart in the second quarter, up from 99 in the prior period, with Fisher Asset Management holding the largest position at 41.5 million shares.
Target’s hedge fund holder count declined to 63 from 68, with AQR Capital Management emerging as the top shareholder after increasing its stake by 11% to 3.3 million shares during the quarter.
Short interest data further illustrates the divergence in investor sentiment, with Target’s short interest sitting at approximately 3% compared to Walmart’s notably lower 1.4%, reflecting measured caution toward Target’s recovery trajectory.
Both retailers face distinct tests heading into the second half of the year, with Target needing to demonstrate that its momentum is durable and Walmart needing to justify a premium multiple through continued multi-segment growth.
