TheStreet’s Jim Cramer says he’s ‘warming up’ to Walmart (WMT). The big box retailer is set to release its latest quarterly results before the opening bell on Tuesday. Analyst are expecting earnings of $1.12 a share on revenue of $119.8 billion for the second quarter. That would be a decline from last year when the company posted earnings of $1.21 a share on revenue of $120.1 billion during the same period. Cramer says he’s looking at Walmart because ‘I think the valuation has gotten quite cheap, almost a 3 percent yield, that has historically been a fantastic place to start thinking about Walmart. Why just thinking about it? Because I am concerned that they still don’t have the momentum that we want.’ However, Cramer says ‘if we could hear that they are sourcing more cheaply because of a stronger dollar, therefore their gross margins could go higher, that would be a compelling story.’ Cramer thinks the discount retailer still has ‘wage issues with the minimum wage and raising their wages to see what impact that will have on the margin, but in the end I’m warming up to Walmart if only just because the stock has come down so much and that Doug McMillon will have some strategy that I think will work over the course of the next year.’
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