Cramer says Walmart is an ‘inflation fighter,’ Wall Street shouldn’t be selling the stock

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  • CNBC’s Jim Cramer said Tuesday that Walmart shares shouldn’t go down.
  • Cramer described the move as a Wall Street problem and did not indicate anything wrong with the retail giant’s quarterly results.
  • “Walmart is keeping prices down aggressively and so their gross margin is down. But they’re taking a share from everybody,” Cramer said.

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CNBC’s Jim Cramer said Tuesday that Walmart shares shouldn’t go down — marking the move as a Wall Street problem and not indicating anything wrong with the retail giant’s quarterly results.

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Walmart shares opened down more than 1% and slipped further on the assumption that the company didn’t raise prices substantially in the third quarter, resulting in disappointing gross margins.

Cramer dismissed that premise in his Morning Investing Club newsletter, along with “Squawk Box” and “Squawk on the Street”, saying Walmart is an “inflation fighter” and “stock taker”.

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He praised the retailer for trying to largely absorb the increased cost due to product shortages and delays and not passing it on to the consumers.

“Walmart is keeping prices down aggressively and so their gross margin is down. But they’re taking a share from everybody,” Cramer said. “This is the moment to partake during a period of inflation.” “I like to cut shares versus their price and worry about gross margin,” he said.

Tuesday’s drop pushed Walmart’s stock slightly lower to date.

Walmart won back price-conscious grocery shoppers in the quarter as it used its size to help manage poor supply chains. The company reported an adjusted third-quarter earnings per share and revenue on Tuesday that beat expectations. It also boosted full-year earnings guidance.

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