Walmart’s third quarter results are out. While the retail giant beat earnings estimates, revenue fell short of analysts' expectations.
Earnings per share came in at $1.08 (adjusted) versus estimate of $1.01. Revenues increased +1.4 percent to $124.89 billion from $123.18 billion a year ago, and missing expectations of $125.55 billion. (Analysts' expectations given according to a survey by Refinitiv).
Walmart’s U.S. same-store sales grew +3.4%, higher than expected +3.1%.
International sales declined -2.6% during the third quarter to $28.8 billion - one of the factors could be its selling of the majority of its Brazilian business to private-equity firm Advent International.
The company’s online sales surged +43% during the third quarter. It has been upping the ante on its digital presence in recent years. Most recently, it acquired retailer Eloquii and intimates online retailer Bare Necessities. In August, it bought a controlling stake in Indian e-commerce company Flipkart for $16 billion. According to CFO Brett Biggs, the company is on pace to achieve +40% growth in e-commerce sales for the full year (as mentioned by CNBC).
Gearing up for the holiday season, Walmart is offering potentially faster shopping experience at its physical stores by providing mobile scanners so shoppers can pay on spot - i.e., without having to queue up at registers. It is also providing store maps on its app so customers can navigate aisles and sections of its stores/supermarkets more easily.
WMT may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 39 cases where WMT's price broke its lower Bollinger Band, its price rose further in the following month. 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 343 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 64 cases where WMT's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on May 06, 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 April 30, 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 49 similar instances when the indicator turned negative. In of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at .
WMT moved below its 50-day moving average on April 30, 2024 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for WMT crossed bearishly below the 50-day moving average on April 29, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 17 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 .
The Aroon Indicator for WMT entered a downward trend on May 02, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying 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 51, 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 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 (5.754) is normal, around the industry mean (10.412). P/E Ratio (31.346) is within average values for comparable stocks, (24.045). Projected Growth (PEG Ratio) (2.470) is also within normal values, averaging (2.826). Dividend Yield (0.013) settles around the average of (0.024) among similar stocks. P/S Ratio (0.749) is also within normal values, averaging (1.244).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a retail discount department store
Industry DiscountStores