Jim Cramer Says Buy Walmart (WMT) as Target’s (TGT) Turnaround Gains Momentum

Walmart WMT reported 38% YoY growth in global advertising, with U.S. and international segments growing 38% and 20% respectively. E-commerce sales rose 23% globally. Advertising contributed to a 96-basis-point expansion in gross profit rate to 25.4%. Vibe acquisition adds SME advertiser access but will reduce fiscal 2027 operating income growth by 20 basis points. Walmart's shares gained 4.8% over the past year, with a forward P/E of 34.75. Analysts expect 5.3% sales and 8.7% EPS growth for the

Walmart, Burlington, and Dollar Tree received billions in tariff refunds, planning to lower prices or offset costs. Walmart (2.9B) and Burlington (55M) will reduce prices, while Dollar Tree (369M) will use funds for targeted cuts, marketing, and operations.

The DOJ expanded its antitrust probe into beef prices to include eight major grocery retailers, seeking records on pricing, costs, and profit margins. The investigation follows a 74% increase in ground beef prices from 2020 to 2026. The DOJ previously targeted major meatpackers, with Tyson Foods settling a lawsuit for $82.5 million. The probe aims to address rising beef prices and their impact on consumers.

Target Corporation reported a 5.3% year-over-year increase in total net sales to $26.54 billion for Q2 2026, with non-merchandise sales surging 20.1%. Growth was driven by Roundel advertising, Target Circle 360 memberships, and Target+ marketplace. Advertising revenues rose to $279 million, while other revenues increased to $174 million. The company's shares have risen 32.7% over the past three months, outperforming industry peers.

Walmart (WMT) expects $2.9B in tariff refunds, using them to lower prices, while Home Depot (HD) received $730M, applying $685M to reduce costs. Lowe's (LOW) plans to use its refund for shareholder returns. Walmart's CFO noted a 1.6% gross profit boost, and Home Depot's CFO reported a 0.3% margin increase.

The DOJ expanded its beef price investigation to include major retailers: Kroger, Publix, Walmart, Albertsons, Aldi, Ahold Delhaize, Costco, and Amazon. The probe, initially focused on the 'Big Four' meatpackers, now scrutinizes retail-level price increases. The DOJ seeks information on recent beef price hikes, citing it as a critical concern for Americans.