Walmart's Stock Soars 43% This Year Even As Arsenic Levels Trigger a Massive Apple Juice Recall

• Walmart has recalled over 9,500 cases of its Great Value brand apple juice due to inorganic arsenic levels exceeding FDA limits.
• Despite the significant recall, Walmart's stock price is up 10% for August.
• Walmart's positive earnings report on August 15 contributed to the stock's rise.

Walmart Inc WMT has recalled over 9,500 cases of its Great Value brand 8oz apple juice, sold in six-packs of PET plastic bottles. This action was taken after tests showed inorganic arsenic levels above FDA guidelines.

The arsenic level was found to be 13.2 parts per billion, exceeding the FDA’s limit of 10 parts per billion. The recall affects stores in 25 states, Puerto Rico, and the District of Columbia.

The problem was identified on August 15, and the recall was classified as Class II by August 23. A Class II recall indicates a risk of temporary or reversible health effects, not immediate threats.

This aligns with FDA guidelines from June 2023, which set strict limits for arsenic in apple juice due to health risks, especially to children.

These risks include neurological effects and potential IQ reduction. Long-term exposure to inorganic arsenic is linked to serious health issues like skin disorders, various cancers, and heart disease.

Short-term exposure can cause nausea, vomiting, bruising, and sensory problems in extremities.

Despite the gravity of the recall, Walmart's financial performance remains strong. The company's stock continues to rise, setting new records, with shares recently peaking at $76.22.

Since early August, the stock has risen by 10% and is up 43% for the year. The company's earnings report on August 15 helped boost this upward trend, with earnings of $0.67 per share, exceeding the expected $0.64.

This news led to an almost 8% rise in the stock price right after the announcement. A similar situation occurred in May when Walmart exceeded earnings expectations, resulting in a 7% jump in stock price.

With the current trend and no major resistance, Walmart's next psychological hurdle might be $100, and it could struggle to advance beyond this point.

After the closing bell on Friday, August 23, the stock closed at $75.70, trading up by 0.16%.

This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.