There is little doubt that tariffs could seriously hurt retail giant Walmart (WMT). Depending on their duration, their severity, and their direction, it could take quite a bit of Walmart’s product mix out of the mix altogether. Thus, Walmart’s CEO Doug McMillon headed for Mar-a-Lago to talk turkey about tariffs with incoming president Trump. The move gave Walmart shares a bit of an edge, up fractionally in the closing minutes of Wednesday’s trading.
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But as it turns out, the talk did not just turn to tariffs. It also turned to the role that McMillon could ultimately play in the new administration, reports noted. Unfortunately, McMillon noted that Walmart will likely have to raise its prices in the event of tariffs. Some of the costs Walmart can absorb, it noted, but not all of them.
The move on Trump’s part to meet with various figures from corporate America is not new. The reports note that Trump has met with several such figures over the last several days ahead of his incoming presidency. McMillon in particular is familiar with Trump; McMillon previously served on an “advisory council” before it was broken up in 2017, and also sat on a COVID-19 task force back in April 2020.
Because Who Doesn’t Love Chicken?
In a move that could prove a major marketing win for Walmart, a report from People revealed that a little girl with a Walmart gift card made an unexpected purchase. Brittany Hanson, the aforementioned little girl, was spotted on a TikTok video in which she bought rotisserie chicken at Walmart with a gift card received during the holidays. Which holiday was unclear from the report.
At any rate, Hanson bought the chicken, brought it home, and began to remove the bones from same, with her mother asking if the little girl would be sharing the meat. Hanson reportedly looked at her mother and said, definitively, “No. Mine.” The video created amassed 2.4 million views, with many supporting Hanson’s decision to buy rotisserie chicken. What would be particularly interesting is if Walmart could put together an ad campaign around Hanson’s clear fondness for chicken in a bid to drive sales.
Is Walmart Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Strong Buy consensus rating on WMT stock based on 26 Buys and two Holds assigned in the past three months, as indicated by the graphic below. After a 74.33% rally in its share price over the past year, the average WMT price target of $97.34 per share implies 6.13% upside potential.
