Walmart stock: buy or sell?
August 22nd, 2019
Walmart Inc. operates retail stores in various formats worldwide. It operates through three segments: Walmart U.S., Walmart International, and Sam's Club.
Should I buy Walmart stock?Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. Following a trading plan helps to make decisions easier, quicker and with less hesitations. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.
None of our preferred buy setups matches with Walmart stock situation right now, therefore this is not a suitable entry point.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
Is Walmart stock a buy?
Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness.At Stocks2.com, we detected 15 ratings published for WMT stock in the last month. The general sentiment of these ratings is bullish for WMT stock, with 12 positive ratings.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-8-16||Telsey Advisory Group||Outperform||Outperform|
|2019-8-16||JPMorgan Chase & Co.||n/a||Neutral|
|2019-8-16||BMO Capital Markets||n/a||Outperform|
|2019-8-16||Bank of America||Buy||Buy|
|2019-8-15||Robert W. Baird||Outperform||Positive|
|2019-8-15||Goldman Sachs Group||n/a||Buy|
|2019-7-11||Goldman Sachs Group||n/a||Buy|
|2019-7-11||Goldman Sachs Group||Buy||Buy|
Walmart stock analysis
Walmart remained constant -0.10% to $111.91 after reaching all time highs on Friday.
Walmart remained constant -0.10% to $111.91 after marking all time highs on Friday. On Friday, WMT hit new all time highs, pushing higher previous ATH of $114.92 recorded on July 16th. New ATHs are usual entry points for many trading setups as there aren't higher resistences. Since price and SMA50d lines crossed up on August/15, WMT climbed $5.71 (5.38%).
After boosting a brilliant 5.05% in a week last week, the retail corporation closed this week at $111.91 and slightly fell an unpleasant -0.96%.
Walmart stock is trading in the range of its last top and last bottom. Loosing would mean breaking the current uptrend. Breakdowns under last bottom are selling point signals for some trading strategies. Not so far away is the last price record the American multinational marked last week. Late December 2018 WMT price bounced up over the SMA of 40 weeks that acted as support stopping new slides. By mid October 2018, SMA20w and SMA40w crossed up triggering a rise of 20.54%.
Walmart stock price history
Walmart stock historical price chart
WMT stock reached all-time highs on Friday with a price of $114.93.
Walmart stock price target is $123.50Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last 30 days we found 15 price predictions for the retail corporation stock:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-8-16||Telsey Advisory Group||Reiterates||$118.00||$125.00||5.9%|
|2019-8-16||Raymond James||Raises Target||$110.00||$120.00||9.1%|
|2019-8-16||JPMorgan Chase & Co.||Set Price Target||n/a||$115.00||-|
|2019-8-16||BMO Capital Markets||Raises Target||n/a||$125.00||-|
|2019-8-16||Bank of America||Raises Target||$120.00||$135.00||12.5%|
|2019-8-15||Robert W. Baird||Reiterates||$115.00||$120.00||4.3%|
|2019-8-15||Goldman Sachs Group||Set Price Target||n/a||$123.00||-|
|2019-7-23||Loop Capital||Raises Target||n/a||$115.00||-|
|2019-7-11||Goldman Sachs Group||Set Price Target||n/a||$123.00||-|
|2019-7-11||Goldman Sachs Group||Initiates||n/a||$123.00||-|
Financials and fundamental analysis
Earnings date and Earnings per ShareOn February, the retail corporation presented its financial report, posting a slightly good gain for the Earnings per Share (EPS) ratio. Analyst expected $1.33 per share, but Walmart posted $1.41.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsIn 2019, Walmart annual sales gained a slightly good 2.81% to $514,405.00 million USD from $500,343.00 marked in 2018. When comparing 2019 vs 2018, instead, profit margin (that is, the net income divided by revenues) remained constant a -0.67% to 1.30%.
|2014||$476,290 M||-||$15,920 M3.3%||-|
|2014||$485,650 M||1.97%||$16,180 M3.3%||1.63%|
|2015||$485,651 M||0.00%||$16,363 M3.4%||1.13%|
|2015||$482,130 M||-0.73%||$14,690 M3.0%||-10.22%|
|2016||$482,130 M||0.00%||$14,694 M3.0%||0.03%|
|2016||$485,140 M||0.62%||$13,640 M2.8%||-7.17%|
|2017||$485,873 M||0.15%||$13,643 M2.8%||0.02%|
|2017||$500,340 M||2.98%||$9,860 M2.0%||-27.73%|
|2018||$500,343 M||0.00%||$9,862 M2.0%||0.02%|
|2019||$514,405 M||2.81%||$6,670 M1.3%||-32.37%|
Quarterly financial resultsWalmart reported $138,793.00 million in sales for 2019-Q1, a 11.13% up compared to previous quarter. Reported quarter income marked $3,687.00 million with a profit margin of 2.66%. Profit margin stepped up a 1.29% compared to previous quarter when profit margin was 1.37%. When comparing turnover to same quarter last year, Walmart sales marked a tiny growth and appreciated a 1.85%.
|2017-Q2||$117,540 M||-||$3,040 M2.6%||-|
|2017-Q3||$123,360 M||4.95%||$2,900 M2.4%||-4.61%|
|2017-Q4||$123,179 M||-0.15%||$1,749 M1.4%||-39.69%|
|2018-Q1||$136,267 M||10.63%||$2,175 M1.6%||24.36%|
|2018-Q2||$122,690 M||-9.96%||$2,134 M1.7%||-1.89%|
|2018-Q3||$128,028 M||4.35%||$-861 M-0.7%||-140.35%|
|2018-Q4||$124,894 M||-2.45%||$1,710 M1.4%||-298.61%|
|2019-Q1||$138,793 M||11.13%||$3,687 M2.7%||115.61%|
Walmart ownershipWhen you are planning to buy a company, it's always worth to review its ownership structure.
Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Walmart, 52.02% of all outstanding shares are owned by its staff.
In case of Walmart stock, 30.32% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for WMT stock account 0.00%, no big difference from last month.
The following table compares ownership indicators for other stocks related to Walmart:
|Market cap||$318.9 B||$897.3 B||$123.1 B||$35.9 B||$23.1 B|
|Total shares||2,850.0 M||492.1 M||439.8 M||258.3 M||237.6 M|
|Float shares||1,410.0 M||436.0 M||432.9 M||244.8 M||234.0 M|
|- Institutional holdings (%)||30.3%||57.1%||73.5%||104.6%||96.6%|
|- Insider holdings (%)||52.0%||16.1%||0.5%||0.1%||2.8%|
|Shares in short selling||0.0%||0.0%||0.0%||0.0%||0.0%|
|Thursday, August 22nd, 2019|
|Day range||$111.35 - $112.79|
|Average true range||$2.72|
|50d mov avg||$110.65|
|100d mov avg||$105.89|
|200d mov avg||$100.52|
Walmart performanceTo better understand Walmart performance you must becnhmark its gains with other related stocks in same sector or industry. In the following table, we compare Walmart to Amazon.com, Costco Wholesale, Dollar General, Dollar Tree, eBay, J.C. Penney, Kohl's, Macy's and Target:
Walmart competitorsWe chose a few stocks to conform a list of Walmart competitors to examine if you are interested in investing in WMT:
- Amazon.com (AMZN)
- Costco Wholesale (COST)
- Dollar General (DG)
- Dollar Tree (DLTR)
- eBay (EBAY)
- J.C. Penney (JCP)
- Kohl's (KSS)
- Macy's (M)
- Target (TGT)
Latest Walmart stock news
- InvestorPlaceBuy Walmart Stock for a Pre-Earnings RallyAugust 1, 2019
- InvestorPlaceBe Prepared for a Pullback In Walmart StockJuly 26, 2019
- InvestorPlaceImprovements Do Not Justify the Higher Multiple in Walmart StockJuly 24, 2019
- InvestorPlaceWhy it Might Be Worthwhile to Consider Walmart StockJuly 23, 2019
- InvestorPlaceThe 3 Big Reasons to Stick With Walmart Stock in 2019July 18, 2019