Walmart Stock Under-priced, Consolidates Positions For Jump (NYSE: WMT)


Walmart shares are trading at a new 52-week high, adding more than 8.5% in value after the publication of a strong quarterly report with results above market expectations on August 15. Revenue grew 1.8% YoY to $130.38 billion, with a comparable sales growth of 2.8%. Net income per share was $1.26 against the last year’s loss. Moreover, the company raised its forecast for financial indicators for the fiscal year 2020.

Last week Walmart Inc. shares grew by 2.41%. The S&P 500 index increased by 3.05% for the same period.

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RecommendationBUY STOP
Entry Point118.00
Take Profit121.00, 124.00, 126.00
Stop Loss117.00, 115.00
Key Levels109.00, 111.00, 114.50, 118.00
Alternative scenario
RecommendationSELL STOP
Entry Point114.45
Take Profit109.00, 106.00
Stop Loss117.50
Key Levels109.00, 111.00, 114.50, 118.00

Trading tips

Long positions can be opened after the price consolidates above the level of 118.00. The closing of the profitable positions is possible at levels 121.00, 124.00 and 126.00. Stop loss will be located at 115.00.

Short positions can be opened after the price consolidates below the level of 114.50 with the targets at 109.00–106.00. Stop loss – 117.50.


Implementation period: 3 days.

Support and resistance

The company’s shares stabilized after a protracted rally. At the moment, #WMT quotes are consolidating near key extremes. The local support and resistance levels are the levels of 114.50 and 118.00. In the near future, technical correction of the trading instrument is not ruled out. Indicators reflect the strength of buyers: the price has fixed above MA (50) and MA (200); MACD is in the positive zone. Nevertheless, it is better to open the positions from the key levels.

A comparative analysis of the multiples of the company and competing companies indicates that #WMT is underpriced.

Resistance levels: 118.00.

Support levels: 114.50, 111.00, 109.00.


From Finviz.com

Sep-05-19ReiteratedMorgan StanleyOverweight$115 → $125
Aug-16-19UpgradeGordon HaskettAccumulate → Buy$125
Aug-16-19ReiteratedTelsey Advisory GroupOutperform$118 → $125
Aug-16-19ReiteratedBofA/MerrillBuy$120 → $135
May-17-19UpgradeGordon HaskettHold → Accumulate$115
May-08-19DowngradeWolfe ResearchPeer Perform → Underperform
May-03-19UpgradeBernsteinMkt Perform → Outperform
Mar-20-19InitiatedEvercore ISIIn-line$95
Feb-20-19ReiteratedTelsey Advisory GroupOutperform$113 → $115
Feb-08-19InitiatedBuckingham ResearchNeutral
Jan-23-19UpgradeMorgan StanleyEqual-Weight → Overweight
Nov-20-18DowngradeDaiwa SecuritiesOutperform → Neutral
Aug-17-18ReiteratedTelsey Advisory GroupOutperform$105 → $107
Aug-17-18DowngradeRaymond JamesStrong Buy → Outperform
Jul-25-18DowngradeGordon HaskettBuy → Hold
May-10-18ReiteratedTelsey Advisory GroupOutperform$110 → $105
Apr-19-18UpgradeArgusHold → Buy$100
Apr-06-18InitiatedLoop CapitalHold$92

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