Cramer says Walmart is an “inflation warrior,” and Wall Street shouldn’t sell its stock

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CNBC’s Jim Cramer said Tuesday that Walmart shares shouldn’t be lower – characterizing the move as a Wall Street problem rather than an indication that the retail giant’s quarterly results are out of order.

Walmart’s shares opened more than 1% and continued to slide as the company failed to hike prices enough in the third quarter, resulting in disappointing gross margins.

Cramer dismissed that premise in “Squawk Box” and “Squawk on the Street” and in his morning Investing Club newsletter, saying Walmart was an “inflation warrior” and a “stockholder”.

He praised the retailer for trying to largely absorb the additional costs caused by product bottlenecks and delays and not to pass them on to consumers.

“Walmart is aggressively keeping prices low, so their gross margins are lower. But they’re taking everyone’s part,” said Cramer. “This is the moment to take part in the inflationary phase.” He added, “I like stocks versus them that are lowering the price and worrying about gross margin.”

Tuesday’s decline pushed Walmart shares down slightly this year to date.

Walmart won back budget-conscious grocery shoppers in the quarter as it used its size to get through tangled supply chains. The company announced on Tuesday adjusted earnings and revenue per share for the third quarter that exceeded expectations. It also improved its earnings forecast for the full year.

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