Walmart stock: buy or sell?

WMT stock price: $111.91 -0.10% At close on August 22nd, 2019

Updated on:
August 22nd, 2019

5

After reaching all time highs on Friday, the retail corporation remained stable -0.10% to $111.91. With Thursday it's been 3 red days in a row. On August/15 WMT climbed an extraordinary 5.76%.

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.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean WMT will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

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.
Is WMT a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-8-16Telsey Advisory GroupOutperformOutperform
2019-8-16Raymond Jamesn/aOutperform
2019-8-16KeyCorpn/aOverweight
2019-8-16JPMorgan Chase & Co.n/aNeutral
2019-8-16BMO Capital Marketsn/aOutperform
2019-8-16Bank of AmericaBuyBuy
2019-8-15Robert W. BairdOutperformPositive
2019-8-15Guggenheimn/aBuy
2019-8-15Gordon HaskettAccumulateBuy
2019-8-15Goldman Sachs Groupn/aBuy
2019-7-23Loop Capitaln/aHold
2019-7-11Goldman Sachs Groupn/aBuy
2019-7-11Goldman Sachs GroupBuyBuy
2019-6-24KeyCorpn/aOverweight
2019-6-24KeyCorpn/aOverweight

Walmart stock analysis

Daily outlook

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%).

WMT stock chart (daily)

Weekly outlook

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%.

WMT stock chart (weekly)

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 $123.50

Predicting 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:
WMT stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-8-16Telsey Advisory GroupReiterates$118.00$125.005.9%
2019-8-16Raymond JamesRaises Target$110.00$120.009.1%
2019-8-16KeyCorpRaises Target$125.00$128.002.4%
2019-8-16JPMorgan Chase & Co.Set Price Targetn/a$115.00-
2019-8-16BMO Capital MarketsRaises Targetn/a$125.00-
2019-8-16Bank of AmericaRaises Target$120.00$135.0012.5%
2019-8-15Robert W. BairdReiterates$115.00$120.004.3%
2019-8-15GuggenheimReiteratesn/a$125.00-
2019-8-15Gordon HaskettUpgrades$115.00$125.008.7%
2019-8-15Goldman Sachs GroupSet Price Targetn/a$123.00-
2019-7-23Loop CapitalRaises Targetn/a$115.00-
2019-7-11Goldman Sachs GroupSet Price Targetn/a$123.00-
2019-7-11Goldman Sachs GroupInitiatesn/a$123.00-
2019-6-24KeyCorpReiterates$120.00$125.004.2%
2019-6-24KeyCorpRaises Target$120.00$125.004.2%
(in average)$117.90$123.505.0%
The price target for Walmart stock is $123.50, moving in a range between $135.00 and $115.00. In average, analysts' outlook on WMT price forecast is positive, improving the target by a 5.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

On 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.
WMT earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a1n/a
2017-Q3-n/a1.14n/a
2017-Q42017-11-160.9713.1%
2018-Q12018-02-201.361.33-2.2%
2018-Q22018-05-171.121.141.8%
2018-Q32018-08-161.211.296.6%
2018-Q42018-11-151.021.085.9%
2019-Q12019-02-191.331.416.0%
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

In 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%.

WMT annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2014$476,290 M-$15,920 M3.3%-
2014$485,650 M1.97%$16,180 M3.3%1.63%
2015$485,651 M0.00%$16,363 M3.4%1.13%
2015$482,130 M-0.73%$14,690 M3.0%-10.22%
2016$482,130 M0.00%$14,694 M3.0%0.03%
2016$485,140 M0.62%$13,640 M2.8%-7.17%
2017$485,873 M0.15%$13,643 M2.8%0.02%
2017$500,340 M2.98%$9,860 M2.0%-27.73%
2018$500,343 M0.00%$9,862 M2.0%0.02%
2019$514,405 M2.81%$6,670 M1.3%-32.37%

Quarterly financial results

Walmart 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%.
WMT quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$117,540 M-$3,040 M2.6%-
2017-Q3$123,360 M4.95%$2,900 M2.4%-4.61%
2017-Q4$123,179 M-0.15%$1,749 M1.4%-39.69%
2018-Q1$136,267 M10.63%$2,175 M1.6%24.36%
2018-Q2$122,690 M-9.96%$2,134 M1.7%-1.89%
2018-Q3$128,028 M4.35%$-861 M-0.7%-140.35%
2018-Q4$124,894 M-2.45%$1,710 M1.4%-298.61%
2019-Q1$138,793 M11.13%$3,687 M2.7%115.61%

Walmart ownership

When 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:

WMTAMZNCOSTDGDLTR
Market cap$318.9 B$897.3 B$123.1 B$35.9 B$23.1 B
Total shares2,850.0 M492.1 M439.8 M258.3 M237.6 M
Float shares1,410.0 M436.0 M432.9 M244.8 M234.0 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 selling0.0%0.0%0.0%0.0%0.0%

Walmart summary

Thursday, August 22nd, 2019
Open$112.20
Close$111.91
Day range$111.35 - $112.79
Previous close$112.02
Session gain-0.10%
Average true range$2.72
50d mov avg$110.65
100d mov avg$105.89
200d mov avg$100.52
Daily pattern
Weekly pattern lt06a

Walmart performance

To 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:
Stock3m6m12m
WMTWalmart9.53%14.18%20.36%
AMZNAmazon.com0.01%11.77%-4.30%
COSTCostco Wholesale13.19%29.77%22.28%
DGDollar General14.06%17.82%29.83%
DLTRDollar Tree-1.26%0.07%3.98%
EBAYeBay11.14%7.50%16.72%
JCPJ.C. Penney-35.48%-51.22%-67.21%
KSSKohl's-6.66%-25.15%-39.38%
MMacy's-25.48%-33.88%-55.46%
TGTTarget27.24%44.95%22.01%

Walmart competitors

We chose a few stocks to conform a list of Walmart competitors to examine if you are interested in investing in WMT:

Latest Walmart stock news