Jim Cramer's Recommendation: How Close is Walmart to a Trillion Dollars?

Walmart Inc. (NYSE:WMT) was one of the stocks discussed in Jim Cramer's recent program. While talking about the retail giant Walmart, Cramer touched upon consumer spending as well as the impacts of the government shutdown. This company stands out as one of Cramer's top picks in the sector alongside Costco.

In his previous assessments of Walmart Inc. (NYSE:WMT), Cramer had stated that due to the firm's scale, it could become one of the few dominant players in the industry. Additionally, the CNBC host questioned the firm’s potential to reach a trillion-dollar market value, evaluating this possibility at 10:1. Cramer expressed his desire to see the stock rise: “I want to see Walmart go higher because people are shopping there. But that hasn’t happened yet... I want to see a calmer environment in the data and a more active one on the consumer side.”

Regarding the likelihood of Walmart Inc. (NYSE:WMT) becoming a trillion-dollar company, Cramer made the following assessment on October 27: “Third, Walmart. Right now, this is the company closest to a trillion. The market value is $833 billion. I assess the possibility at 10:1. I love Walmart; I also love shopping there...” he continued. However, Cramer emphasized that the shares have gained tremendous value and are currently trading at a price-to-earnings ratio of 40, which is quite high for the retail sector. In fact, Amazon is trading at a 34 P/E ratio this year. Although Walmart has made significant advancements, its ability to manage tariffs due to its large scale is better positioned than most of its competitors. However, the shares are not cheap at this time.

While acknowledging Walmart's investment opportunity potential, we believe that some artificial intelligence stocks may provide higher returns and carry limited downside risk. If you are looking for a very cheap artificial intelligence stock that also benefits from Trump tariffs, you can check out our free report on the best short-term artificial intelligence stock.