Walmart stock could be a steal.
Bill Simon, former U.S. CEO of Walmart, believes that retailers’ stock sales are linked to forecasts of slow profit growth, and tariff concerns are creating a major opportunity for investors.
He told CNBC’s “I, I definitely think their guidance is very strong because… no one knows what happens to tariffs.”Quick money“On Thursday, Walmart reported the results for the fourth quarter.
But even if the U.S. imposes tariffs on Canada and Mexico, Simon predicts that “nothing” should happen to Wal-Mart.
“Ultimately, consumers decide whether to pay taxes,” Simon said. “There is avocado-related tax in Mexico. Do you have avocado sauce on your fries, or do you have salsa and Queso where there is no tariff?”
Also, Simon, he is now Daden Restaurant Board of Directors, Yes Hanesbrandssee Walmart as an agile retailer.
“Big man, Walmart, Costco, Target,,,,, Amazon…has the supply and procurement capability to mitigate tariffs by redirecting products – develop your own dedicated record company from different places (and) to you. ”
Walmart stocks have just seen their worst weekly performance since May 2022, almost down 9%. Stock Price Revenue fell by more than 6% on the day. This is the worst daily performance of the stock since November 2023.
Simon thought the sell-off was strange.
“I thought if you hit numbers and beat your revenue, things would usually go well in the market. But we hardly know. You have to have some magic dust,” he said. “I don’t know you’re in this quarter. How to do better.”
Last May, he warned that it was far from his position Wealthy consumers have created a “bubble” at Walmart. Walmart shared a record high. He noted that historical trends indicate that ultimately shifting from convenience and price to service.
But now Simon believes that the economic and geopolitical background is so unprecedented that high-income consumers can shop at Walmart permanently.
“If you liked the story yesterday before the earnings were released, you should love it today because it’s cheaper,” Simon said.
Walmart stock is now down 10% from its all-time high on February 14. However, Walmart’s stock has still increased by about 64% over the past 52 weeks.
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