Walmart (WMT, $139.53) beats fiscal Q2 expectations
Walmart posted its fiscal second quarter earnings that exceeded analysts’ expectations, even amidst cooling off of consumers’ demand for discretionary items,
The big box retail giant’s adjusted earnings came in at $1.77 per share, well above the $1.62 expected by analysts’ polled by Refinitiv.
Revenue of $152.86 billion was also higher than analysts’ expectations of $150.81 billion.
The company’s same-store sales in the U.S. grew +6.5% year-over-year in the second quarter, excluding fuel, compared with the year-ago period, beating estimates of 5.9% growth that analysts expected, according to StreetAccount.
E-commerce sales climbed +12% from the year-ago period.
CFO John David Rainey told CNBC the Walmart’s reputation as a discounter is attracting more middle- and high-income shoppers. About three-quarters of Walmart's market share gains in food was attributed to customers with annual household incomes of $100,000 or more.
However, inflation is still be a headwind for the company. "We expect inflation to continue to influence the choices that families make and we're adjusting to that reality so we can help them more," CEO Doug McMillon mentioned to analysts on a conference call Tuesday (as reported in CNBC).
Walmart expects same-store sales for Walmart U.S. growth of about +3%, excluding fuel, for the second half of the year, or about +4% for the full year. It predicts adjusted earnings per share decline between 9% and 11% for the full year.
WMT in upward trend: price expected to rise as it breaks its lower Bollinger Band on April 01, 2024
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 38 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 .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where WMT advanced for three days, in of 346 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 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 .
Bearish Trend Analysis
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 18, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on WMT as a result. In of 81 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 .
WMT moved below its 50-day moving average on April 18, 2024 date and that indicates a change from an upward trend to a downward trend.
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 .
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 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 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 (5.695) is normal, around the industry mean (10.222). P/E Ratio (31.026) is within average values for comparable stocks, (23.610). Projected Growth (PEG Ratio) (2.445) is also within normal values, averaging (2.861). Dividend Yield (0.013) settles around the average of (0.024) among similar stocks. P/S Ratio (0.741) is also within normal values, averaging (1.207).
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a retail discount department store
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