After failed merger attempts with Sainsbury’s, Walmart is now contemplating a stock market floatation for the British supermarket retailer Asda that likely to value the business at more than £7 billion. The company may soon go public to strengthen long-term successes.
However, preparations of floatation may take years before coming to fruition, so in the meantime the company must ensure that the UK chain receives adequate resources to realize its full potential.
Meanwhile, the U.S retailer has instructed Asda to focus on improving its operations, including the implementation of £80 million of price cuts to take on rivals such as Aldi and Lidl. However, Asda itself is faced by greater challenges such as the threat of Amazon.
Analysts believe that contemplations of IPO could mean that the U.S. retailer is struggling to find a plan B for its UK business, especially after its merger attempt with Sainsbury failed.
But analysts also believe that these supermarkets need to sharpen their prices in the face of rapidly expanding low cost players like Aldi and Lidl. But Walmart needs to keep in mind the lives of people while they want to bring billions into the market. Asda’s employees have sought reassurances from their company regarding safety of their jobs.
The £7.3 billion merger deal between Walmart and Sainsbury was blocked by the UK’s competition watchdog, which ruled last month that a merger could mean less choice and higher prices for shoppers. The Leeds-based supermarket chain Asda was purchased by Walmart way back in July 1999 for £6.7 billion.
WMT moved below its 50-day moving average on April 23, 2024 date and that indicates a change from an upward trend to a downward trend. In of 49 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are .
The 10-day RSI Indicator for WMT moved out of overbought territory on March 22, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 48 similar instances where the indicator moved out of overbought territory. In of the 48 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on April 23, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on WMT as a result. In of 80 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 Moving Average Convergence Divergence Histogram (MACD) for WMT turned negative on March 18, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at .
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 .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 49 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 .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where WMT advanced for three days, in of 344 cases, the price rose further within the following month. The odds of a continued upward trend are .
WMT may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 342 cases where WMT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
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 50, placing this stock better than average.
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 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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average 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 slightly 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 (5.679) is normal, around the industry mean (10.294). P/E Ratio (30.937) is within average values for comparable stocks, (23.817). Projected Growth (PEG Ratio) (2.438) is also within normal values, averaging (2.877). Dividend Yield (0.013) settles around the average of (0.024) among similar stocks. P/S Ratio (0.739) is also within normal values, averaging (1.218).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a retail discount department store
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