The effects of the salary rise at Walmart (WMT, $140.46) on the company's profitability.
The minimum wage for hourly workers in the United States will rise to $14 per hour from the present rate, according to Walmart, the largest retailer in the world. The average hourly wage will be increased by the corporation to $17.50. This action, which is a part of the company's continued endeavor to invest in its staff and offer better career possibilities, is anticipated to benefit more than 565,000 people.
However, there is some concern that the increase in wages could have a negative impact on the company's profitability. Walmart is already facing stiff competition from online retailers like Amazon.
Furthermore, recent market data indicates that Walmart's stock broke above its upper Bollinger Band on February 13, 2023. This is a technical indicator that suggests the stock may be overbought and due for a correction. In fact, the A.I.dvisor has looked at 46 similar instances where the stock broke above the upper band, and in 23 of those cases, the stock fell afterward. This puts the odds of success at 50%.
Investors may want to consider selling the stock or exploring put options as the stock moves back below the upper band and toward the middle band. While Walmart's decision to raise wages is commendable, it is important to remember that investing in the stock market always carries some risk.
WMT's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for WMT turned positive on January 22, 2025. Looking at past instances where WMT's MACD turned positive, the stock continued to rise in of 45 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on January 15, 2025. You may want to consider a long position or call options on WMT as a result. In of 78 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where WMT advanced for three days, in of 347 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 400 cases where WMT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 6 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 8 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
WMT broke above its upper Bollinger Band on January 24, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 61, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. WMT’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (9.191) is normal, around the industry mean (8.076). P/E Ratio (41.640) is within average values for comparable stocks, (41.734). Projected Growth (PEG Ratio) (3.035) is also within normal values, averaging (2.863). Dividend Yield (0.008) settles around the average of (0.023) among similar stocks. P/S Ratio (1.209) is also within normal values, averaging (1.290).
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General Information
a retail discount department store
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