The retail giant’s shares have fallen<\/strong> from a 52-week high<\/strong>near $135<\/strong>to<\/strong>about $112<\/strong>.\u00a0The stock is now down for the year<\/strong>, even as the broader market keeps climbing.<\/p>\n A drop like that usually leaves Wall Street silent. However, Jim Cramer did the opposite.<\/p>\n The CNBC host captured his read on the sell-off in a single word, and it’s one that long-term investors will want to consider before they write the stock off.<\/p>\n Cramer’s one-word verdict on Walmart stock? \u201cExcessive<\/strong>.\u201d<\/p>\n That’s how Jim Cramer described a name he believed had dropped too far and too fast. Walmart stock was down<\/strong>5%<\/strong> at one point and closed down<\/strong>about 3.9%<\/strong> that day, according to Yahoo Finance.<\/p>\n Cramer dismissed the argument that cheaper gas would pull value shoppers away<\/strong> from Walmart, calling that idea “nonsense<\/strong>.\u201d<\/p>\n His reasoning was simple. The stock had fallen about 26 points<\/strong> from its high and was trading near 37 times earnings<\/strong>. That’s a drop he said “feels excessive<\/strong>.\u201d<\/p>\n Cramer added that rival retailer TJX’s decline<\/strong> looked just as excessive, the Foreign Policy Journal reported.<\/p>\n Marvin Samuel Tolentino Pineda / Getty Images<\/p>\n<\/figcaption><\/figure>\n Walmart’s trouble began with an earnings report that the market did not like.<\/p>\n According to CNBC, on May 21, the company reported first-quarter fiscal 2027 results. The revenue beat expectations, but profit only met them.\u00a0<\/p>\n Walmart’s U.S. comparable sales also rose 4.1%<\/strong>, and e-commerce jumped 26%<\/strong>, based on Walmart’s earnings release.<\/p>\n More Retail Stocks:<\/strong><\/p>\n The problem was guidance. Management left its full-year outlook unchanged instead of raising it. That forecast also came in below Wall Street’s estimates, SEC filings show.<\/p>\n Rising fuel costs were another worry. They cut into Walmart’s distribution and fulfillment expenses<\/strong>. It was a roughly $175 million<\/strong> hit that affected shoppers’ budgets, too.<\/p>\n Even with the stock already trading near 48 times earnings<\/strong>, the news sent shares down about 7.3% in a single session<\/strong>, TradingView noted. Consequently, Walmart closed at $121.34.<\/p>\n Cramer’s confidence rests on a business that kept delivering while the stock fell.<\/p>\n According to Insider Monkey, he noted Walmart matched expectations<\/strong> on U.S. comparable-store sales and grew earnings 8%<\/strong> compared to last year.<\/p>\n Related: Walmart figured out how to sell you to advertisers for $6 billion<\/strong><\/p>\n Cramer’s main point is that Walmart tends to pull in customers from weaker retailers when household budgets tighten, turning downturns into market share.<\/p>\n As of late June<\/strong>, the S&P 500<\/strong> was up about 7.5%<\/strong> for the year, while Walmart slid the other way.<\/p>\n Walmart versus the broad market<\/strong>:<\/p>\n A lower price tag doesn’t automatically make Walmart a bargain.<\/p>\n Even after the drop, the stock trades near 39 times earnings<\/strong> and remains down for the year<\/strong>. That doesn’t leave much room for error if consumer spending slows or the next earnings report disappoints.<\/p>\n Walmart’s dividend yield is under 1%<\/strong>, so investors aren’t getting paid much to sit and wait.<\/p>\n Cramer’s call is a reason for long-term holders to stay patient. However, it is not a guarantee of gains.\u00a0<\/p>\n A dip only rewards buyers when the business behind it keeps growing, and Walmart still has to prove that quarter by quarter.<\/p>\n Related: Walmart adds service to rival DoorDash, UberEats<\/strong><\/p>\n #Jim #Cramer039s #unexpected #1word #reaction #Walmart #stock<\/p>\n","protected":false},"excerpt":{"rendered":" Walmart (WMT) looked unstoppable this spring. But by early July, its performance had significantly declined. The retail giant’s shares have fallen from a 52-week highnear $135toabout $112.\u00a0The stock is now… <\/p>\n","protected":false},"author":1,"featured_media":11022,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[246],"tags":[12670,10387,3051,9366,91,2810,807],"class_list":["post-11021","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-popular","tag-1word","tag-cramer039s","tag-jim","tag-reaction","tag-stock","tag-unexpected","tag-walmart"],"_links":{"self":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts\/11021","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11021"}],"version-history":[{"count":0,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts\/11021\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/media\/11022"}],"wp:attachment":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11021"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11021"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11021"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Jim Cramer calls Walmart stock sell-off \u201cexcessive\u201d<\/h2>\n
![](\"https:\/\/www.thestreet.com\/.image\/NDA6MDAwMDAwMDAzMTA0MjMx\/walmartsupercentre_pl_060726.jpg?profile=rss\")
What triggered Walmart’s slide from record highs<\/h2>\n
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The bull case Cramer sees in Walmart stock<\/h2>\n
Why Cramer still backs Walmart<\/strong>:<\/h3>\n
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How Walmart stock stacks up against the S&P 500<\/h2>\n
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What Walmart investors should weigh before buying the dip<\/h2>\n
What still needs to go right<\/strong>for Walmart stock:<\/strong><\/h3>\n
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