Shares of Walmart (NYSE: WMT) dropped 4.9% as the S&P 500 and Nasdaq Composite also fell. The retail giant reported mixed Q2 earnings, with revenue exceeding expectations at $177.4 billion but EPS falling short at $0.68 vs. $0.74 consensus. Tariffs, discounts, and rising prices are impacting margins, but comp sales in the U.S. grew 4.6% year over year.

Despite margin and earnings impact, investors were pleased with Walmart’s top-line growth and organic sales increase. CFO John David Rainey noted the challenges of absorbing tariff costs and avoiding passing them on to consumers. Some investors are cautious, but Walmart remains a cash-flow powerhouse and consumer staple.

Before investing in Walmart, note that it did not make the Motley Fool’s list of the top 10 stocks to buy now. The 10 stocks selected by the Stock Advisor team have the potential for significant returns in the future. Stock Advisor’s total average return is 1,049%, outperforming the S&P 500’s 183%. Join to access the latest top 10 list.

Read more at Yahoo Finance: Why Walmart Stock Sank Today