Walmart CEO Doug McMillon is warning that a period of deflation could be coming in the next few months, but the retailer is better positioned than most to manage such an environment, Baird analysts say in a research note. While falling prices ratchet up the need to sell more units, customers are responding well to price rollbacks that are funded by Walmart’s vendors, and paying less for food should free up dollars for more spending on general merchandise, the analysts say. They recommend buying Walmart’s stock after the past week’s pullback.