Walmart (WMT, $135.27) crushes Q2 earnings expectations

Walmart Inc.  reported second quarter earnings that beat analysts’ estimates, on solid digital sales.

The retail giant’s adjusted earnings for the three months ending July surged +22.8% year-over-year to $1.56 per share, well ahead of the Street consensus expectation of $1.25 per share.

Revenue increased +5.6% year-over-year to $137.7 billion, which is higher than the Street estimate of  $135.37 billion.

Walmart’s e-commerce sales performed solidly well amid the covid-19 pandemic, with a +97% growth the year-ago period.

Comparable sales in the U.S. climbed +9.3%. The growth is nearly +10%, after removing fuel sales .

Tickeron's analysis shows: WMT's in Uptrend: Moving Average Convergence Divergence (MACD) Histogram crosses above signal line

This is a Bullish indicator signaling WMT's price could rise. Traders may explore going long on the ticker or buying call options. In 27 of 52 cases where WMT's MACD histogram became positive, the price rose further within the following month. The odds of a continued Uptrend are 52%.

Current price $135.27 is above $130.14 the highest support line found by A.I. Throughout the month of 07/16/20 - 08/17/20, the price experienced a +3% Uptrend. During the week of 08/10/20 - 08/17/20, the stock enjoyed a +3% Uptrend growth.

Technical Analysis (Indicators)

Bullish Trend Analysis

The Momentum Indicator exceeded the 0 level on August 12, 2020. Traders may consider buying the ticker or exploring call options. In 48 of 94 cases where the ticker's Momentum Indicator exceeded 0, its price rose further within the subsequent month. The odds of a continued Uptrend are 51%.

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where WMT advanced for three days, in 169 of 334 cases, the price rose further within the following month. The odds of a continued Uptrend are 51%.

The Aroon Indicator entered an Uptrend today. In 126 of 306 similar cases where WMT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 41%.

Bearish Trend Analysis

The RSI Indicator demonstrated that the ticker has entered the overbought zone. Expect a price pull-back in the near future.

The Stochastic Indicator demonstrated that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.

The higher Bollinger Band was broken -- a price fall is expected as the ticker heads toward the middle band, which invites the trader to consider selling or shorting the ticker, or exploring put options. In 21 of 49 cases where WMT's price broke its higher Bollinger Band, its price dropped further during the following month. The odds of a continued Downtrend are 43%.

Fundamental Analysis (Ratings)

Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 78%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.04.

The Tickeron Profit vs. Risk Rating rating for this company is 4 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 88, placing this stock better than average.

The Tickeron Price Growth Rating for this company is 34 (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 36 (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.

The Tickeron Valuation Rating of 40 (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: WMT's P/B Ratio (5.63) is slightly higher than the industry average of (2.13). P/E Ratio (25.79) is within average values for comparable stocks, (42.18). Projected Growth (PEG Ratio) (0.28) is also within normal values, averaging (0.63). Dividend Yield (1.85) settles around the average of (1.13) among similar stocks. P/S Ratio (0.65) is also within normal values, averaging (0.46).

The Tickeron PE Growth Rating for this company is 62 (best 1 - 100 worst), pointing to consistent 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.