With a record spending for Christmas, all eyes are on Walmart and Amazon. Ten years ago, Walmart was undisputed king, now Amazon has taken the lead. A quick look at the financials show that Amazon has $20 billion in free cash flow, vs Walmart’s $13.9 billion. However, if you look at valuation (earnings (P/E), free cash flow (P/FCF), and sales (P/S)), Walmart wins and includes a dividend. Walmart receives 18% of all food stamps, while Amazon doesn’t appear to be getting much of the market. Bottom line, Walmart is far from being knocked out when compared to Amazon and investors would be wise to keep eye on Walmart stock.
Speaking of which, Walmart shares are trading at a premium of 1% to the monthly minimum, reflecting a downtrend since the beginning of the week. Since the beginning of the year, the stock’s quotes grew by 28.3%. According to the results of the current quarter, The Wall Street analysts forecast an increase in the financial indicators of the company, including an increase in sales by 2.8% and growth in earnings per share by 2.1% amid record online sales during the holiday season in the USA. During the previous week, Walmart shares dropped by 0.28%. S&P500 went up by 1.54% within the same period.
Due to a lack of significant economic releases, investors continue to monitor the situation around the signing of the first phase of the trade deal between the United States and China. It is expected that the formalization of the contract by Chairman Xi Jinping and President Trump will take place at the beginning of the new 2020, possibly in the first week of January. On Tuesday, Trump said that the process of preparing the signing is nearing completion. On Thursday, the Chinese Foreign Ministry said that China is in close contact with the United States on this issue.
Today, oil quotes are growing moderately. Strengthening is due to a complex of positive factors. Investors are waiting for the soon signing of a trade deal between China and the United States, which could help increase energy demand. The profit of Chinese industrial enterprises in November grew by 5.4%, which is the most significant increase over the past 8 months. The API report recorded a significant decrease in US oil reserves by 7.900 million barrels. In the evening, traders are waiting for a corresponding report from the EIA. According to forecasts, US oil reserves may decline for the second week in a row, this time another 1.724 million barrels. The implementation of the forecast will provide additional support to oil prices.
Walmart Stock Support and Resistance
Walmart stock continues to trade in the flat market. The technical picture is uncertain. The company’s shares are testing local levels of support and resistance at 117.00 and 121.60, respectively. Technical correction of #WMT quotes is possible in the near future. Comparing company’s multiplier with its competitors, we can say that #WMT shares are undervalued.
Support levels: 118.00, 115.00, 111.00.
Resistance levels: 121.60, 125.00.
Walmart Stock Pivots
Pivot Classic Fibonacci Camarilla Woodie DM
S3 103.91 112.21 116.81 106.69 —
S2 112.21 115.38 117.57 111.88 —
S1 115.65 117.34 118.33 115.00 118.08
P 120.52 120.52 120.52 120.19 121.73
R1 123.96 123.69 119.85 123.30 126.39
R2 128.82 125.65 120.61 128.49 —
R3 137.13 128.82 121.37 131.61 —
Walmart 1 Day Moving Averages
Name Value Action
Exponential Moving Average (5) 119.65 Sell
Simple Moving Average (5) 119.69 Sell
Exponential Moving Average (10) 119.73 Sell
Simple Moving Average (10) 120.02 Sell
Exponential Moving Average (20) 119.64 Sell
Simple Moving Average (20) 119.53 Sell
Exponential Moving Average (30) 119.48 Buy
Simple Moving Average (30) 119.59 Sell
Exponential Moving Average (50) 118.95 Buy
Simple Moving Average (50) 119.32 Buy
Exponential Moving Average (100) 116.77 Buy
Simple Moving Average (100) 117.05 Buy
Exponential Moving Average (200) 112.00 Buy
Simple Moving Average (200) 111.04 Buy
Ichimoku Cloud Base Line (9, 26, 52, 26) 119.77 Neutral
Volume Weighted Moving Average (20) 119.56 Sell
Hull Moving Average (9) 119.23 Buy
Walmart Stock Trading Ideas
If the price consolidates above the resistance level of 121.60, one may consider buying #WMT. Potential profits should be locked in by orders at 124.60, 127.00, and 130.00. Stop-loss – 118.50. If the price consolidates below 118.00, #WMT shares may correct. The moving potential is aimed at the area of 113.00–111.00. Stop-loss – 121.00. Implementation period: 3 days.
Walmart Stock Recommendations
Nov-15-19 Reiterated Telsey Advisory Group Outperform $130 → $132
Sep-05-19 Reiterated Morgan Stanley Overweight $115 → $125
Aug-16-19 Upgrade Gordon Haskett Accumulate → Buy $125
Aug-16-19 Reiterated Telsey Advisory Group Outperform $118 → $125
Aug-16-19 Reiterated BofA/Merrill Buy $120 → $135
Jul-11-19 Initiated Goldman Buy $123
May-17-19 Upgrade Gordon Haskett Hold → Accumulate $115
May-08-19 Downgrade Wolfe Research Peer Perform → Underperform
May-03-19 Upgrade Bernstein Mkt Perform → Outperform
Mar-20-19 Initiated Evercore ISI In-line $95
Feb-20-19 Reiterated Telsey Advisory Group Outperform $113 → $115
Feb-08-19 Initiated Buckingham Research Neutral
Jan-23-19 Upgrade Morgan Stanley Equal-Weight → Overweight
Nov-20-18 Downgrade Daiwa Securities Outperform → Neutral
Sep-14-18 Resumed Goldman Neutral $101
Aug-17-18 Reiterated Telsey Advisory Group Outperform $105 → $107
Aug-17-18 Downgrade Raymond James Strong Buy → Outperform
Jul-25-18 Downgrade Gordon Haskett Buy → Hold
May-10-18 Reiterated Telsey Advisory Group Outperform $110 → $105
Apr-19-18 Upgrade Argus Hold → Buy $100