Walmart Stock may be a steal.
Former Walmart Us CEO Bill Simon Contends The Retailer’s Stock Sell-off Tied to a Solowing Profit Growth Forecast and Tariff Fears is Creating a Major Opportunity for Investors.
“I absolutely thought their guidance was pretty strong given the fact that… NOBODYS Knows What’s Going to Haappen with Tarifs,” He Told CNBC’s “Fast money“on thuresday, the day walmart reported fiscal fourth -Quarter Results.
But even if US tariffs against canada and mexico move forward, Simon Predicts “Nothing” Should Happen to Walmart.
“Ultimately, The Consumer Decides with a tariff or not,” said Simon. “There’s a tariff on avocados from mexico. Do you have guacamole with your chips or do you have salsa and queso where there is no tarif?”
Plus, simon, who’s now on the Darden restaurants Board and is the Chairman at HanesbrandsSees walmart as a nimble retailer.
“The big guys, Walmart, Costco, Target, Amazon… have the supply and the sourcing capability to mitigate tarifs by redirecting the product – brings it in from different places (and) Developing their Own Private Labels, “Said Simon. Out tarifs. “
Walmart Shares just when their Worst Weekly Performance Since May 2022 – Tumbling almost 9%. The stock price Fell more than 6% on Its earnings day aloneIt was the stock’s Worst Daily Performance Since November 2023.
Simon Thinks The Sell-Off is Bizarre.
“I thought if you have your numbers and did well and beat your earnings, things would usually go well for you in the market. “I don’t know how you could have done much better for the Quarter.”
It’s a departure from his stance last may on “fast money” when he warned Affluent consumers were creating a “bubble” at walmart. It came with Walmart Shares Hitting Record Highs. He Noted Historical Trends Pointed to an Eventual Shift Back to Service from Convenience and Price.
But now Simon Thinks The Economic and Geopolitical Backdrop is so unprecedented, Higher-Income Consures May Shop at Walmart Permanently.
“If you liked that story yesterday before the earnings release, you should love it today beCause it’s … Cheaper,” Said Simon.
Walmart stock is now down 10% from its all-time high hit on Feb. 14. However, it’s still up about 64% over the past 52 weeks.
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