Walmart’s stock continues to drop. The giant big-box store appears to be losing the battle against Amazon. However, Walmart is taking notice and has started to take on Amazon with free, fast shipping, store pick-ups, and leadership change. Last Friday, an internal memo was sent to employees saying that chief merchant Steve Bratspies was leaving and being replaced by Scott McCall, who most recently led entertainment, toys and seasonal at Walmart.
Many Walmart stock investors are hoping for a positive earnings release on February 18. Analysts are predicting Walmart stock to post earning of $1.44 per share (EPS). This would be the year over year growth up 2.13% Zacks is slightly more optimistic in that they are showing a consensus of 2.7% growth. Investors that follow the “Zacks Rank System,” which ranges from #1 (Strong Buy) to #5 (Strong Sell), currently have the EPS moving .11% higher and a Zacks Rank of #2 Buy.
Walmart shares are trading at a 5-month low of January 15, losing 3.2% in value since the end of December. The decline of the emitter’s quotes from the November 52-week high exceeded 7.5%. Walmart made a deal to sell a range of SmileDirectClub’s products in its stores. In the first half of February, investors expect the financial results of the company for the past quarter. During the previous week, Walmart’s shares dropped by 1.22%. S&P500 went up by 1.97% within the same period.
Walmart Support and Resistance
The company’s shares started to decline after the prolonged rally. #WMT quotes updated local minima. Currently, the emitter is testing the support level of 114.50. 117.50 is a “mirror” resistance level. The instrument has the potential to further correction.
Indicators give give a clear signal – Strong SELL. We do not see this as buy right now because it may dip deeper. However, positions are to be opened from key levels. Investors should continue to watch the technicals to see any change in trend, especially as we get closer to Walmart’s earning on February 18th.
Support levels: 114.50, 111.00, 109.00.
Resistance levels: 117.50, 121.60, 125.00.
Walmart Trading Ideas
If the Walmart’s stock price consolidates below the support level of 114.50, #WMT shares may continue to correct. Potential profits should be locked in by orders at 112.00, 110.00, and 108.00. Stop-loss – 117.00. If the price consolidates above the level of 117.50, one may consider buying #WMT. The moving potential is aimed at the area of 122.00–124.00. Stop-loss – 115.00. Implementation period: 3 days.
Walmart Stock Recommendations
Dec-31-19 Reiterated Morgan Stanley Overweight $125 → $130
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
Walmart Stock 1 Day Moving Averages
Name Value Action
Exponential Moving Average (5) 115.66 Sell
Simple Moving Average (5) 115.64 Sell
Exponential Moving Average (10) 116.31 Sell
Simple Moving Average (10) 116.23 Sell
Exponential Moving Average (20) 117.25 Sell
Simple Moving Average (20) 117.77 Sell
Exponential Moving Average (30) 117.75 Sell
Simple Moving Average (30) 118.44 Sell
Exponential Moving Average (50) 118.03 Sell
Simple Moving Average (50) 118.84 Sell
Exponential Moving Average (100) 116.83 Sell
Simple Moving Average (100) 118.14 Sell
Exponential Moving Average (200) 112.71 Buy
Simple Moving Average (200) 112.46 Buy
Ichimoku Cloud Base Line (9, 26, 52, 26) 118.32 Neutral
Volume Weighted Moving Average (20) 117.45 Sell
Hull Moving Average (9) 115.22 Sell