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.
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.
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.
Ruchi has an Accounting and Graduate Degree in Business from the International School and Business and Media. She is exceptionally skilled in financial databases like Bloomberg, ThomsonOne,Datastream, CapitalIQ, and Factiva. Her focus at AlphaBetaStock.com is research breaking stocks and investment stories.