Walmart's (WMT, $99.60) earnings look strong
Walmart published an impressive FY19 fourth quarter earnings report, recording revenue growth of over 3.1% on a y-o-y basis.
The company’s comparable-store sales recorded an impressive 4.2% growth rate on a y-o-y basis – an acceleration from the 3.4% growth achieved in Q3. Additionally, Walmart declared a 2% dividend increase, keeping with the quarterly-increasing dividend trend of the last 46 years.
But what impressed the street the most was the company's sustained growth momentum in the e-commerce segment, which reported impressive 43% y-o-y growth. In Q2 and Q3, the Company reported e-commerce sales growth of 40% and 43%, respectively. With this sustained growth momentum, the segment reported an impressive 40% y-o-y growth for the full year.
On the other hand, Walmart competitors like Target (TGT) reported e-commerce sales for November and December period were up 29% on a y-o-y basis. This is good news for Walmart as it suggests greater growth in its online sales than Target, although not on an exact quarter to quarter comparison.
Other peers like Costco’s (COST) e-commerce sales recorded 28% y-o-y growth, while Amazon's (AMZN) revenue from online stores recorded only 14% y-o-y increase in the fourth quarter.
In short, Walmart is looking good in its e-commerce segment and time will reveal how well it can beat competition from Target, Costco and Amazon.
WMT's RSI Oscillator ascending out of oversold territory
The RSI Oscillator for WMT moved out of oversold territory on May 26, 2023. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 24 similar instances when the indicator left oversold territory. In of the 24 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 51 cases where WMT's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
WMT moved above its 50-day moving average on June 05, 2023 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where WMT advanced for three days, in of 320 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 295 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 Momentum Indicator moved below the 0 level on May 19, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on WMT as a result. In of 88 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The 10-day moving average for WMT crossed bearishly below the 50-day moving average on May 30, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where WMT declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
WMT broke above its upper Bollinger Band on May 08, 2023. 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.
Fundamental Analysis (Ratings)
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 58, placing this stock better than average.
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 Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued 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 (5.571) is normal, around the industry mean (56.962). WMT has a moderately high P/E Ratio (36.101) as compared to the industry average of (23.074). WMT's Projected Growth (PEG Ratio) (3.514) is slightly higher than the industry average of (1.962). Dividend Yield (0.015) settles around the average of (0.033) among similar stocks. P/S Ratio (0.655) is also within normal values, averaging (1.153).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady 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 Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating slightly weaker than average sales and a marginally 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.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a retail discount department store
Industry DiscountStores
WMT and
Correlation & Price change
A.I.dvisor indicates that over the last year, WMT has been loosely correlated with COST. These tickers have moved in lockstep 60% of the time. This A.I.-generated data suggests there is some statistical probability that if WMT jumps, then COST could also see price increases.
| Ticker / NAME | Correlation To WMT | 1D Price Change % | ||
|---|---|---|---|---|
| WMT | 100% | +0.66% | ||
| COST - WMT | 60% Loosely correlated | +1.10% | ||
| DG - WMT | 51% Loosely correlated | -4.36% | ||
| TGT - WMT | 51% Loosely correlated | -1.97% | ||
| DLTR - WMT | 47% Loosely correlated | -2.52% | ||
| PSMT - WMT | 40% Loosely correlated | -3.05% | ||
More | ||||
