Walmart Inc. (WMT)

Walmart stock forecast: buy or sell

Walmart stock outlook

  • Walmart grew a 1.93% after reaching new all-time highs yesterday
  • From the chart point view, price is drawing an scaled downtrend since mid-April with lower tops and lower bottoms. this downtrend marked a -0.59% loss(from its highs at $132.80).
  • Today broke out above its latest top at $131.99
  • The price is currently over the upper Bollinger band, which often indicates a short-term correction
  • With the recent gains, Walmart is approaching to new all-time highs again, that are now just 1.2% above the current price
  • Walmart Inc. engages in the retail and wholesale operations in various formats worldwide. The company operates in three segments: Walmart U. S., Walmart International, and Sam's Club.
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Please read:
The thoughts contained in this post are personal and not recommendations for you to buy or sell shares. The author of this article does not have an understanding of the particular circumstances of the reader, his or her own finances or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are expressed for informational purposes only

Walmart stock chart overview

Should I buy Walmart stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is WMT stock a buy?

In the current situation of Walmart there is not any eligible buy setup. This doesn't mean we expect a selloff for WMT in the next few days, or that it may not climb higher. Simply, it doesn't match our recommended trading systems

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Should I sell Walmart stock?

"To sell or not to sell", if you are holding Walmart stock?. Trading strategies allow us to avoid impetuous decisions based on our emotions or the buzz surrounding the market. When selling, as well as buying, detailed strategies are very simple to follow but are only valid for selling shares you already own, not for selling short WMT stock

A guiding principle is that you should never keep a trade that generates losses greater than those expected by the time of the buy. The timing to sell shares must always be determined by the stop-loss (automatic or manual)

Is it time to sell Walmart stock?

In the current situation of Walmart there is not any eligible sell setup, so Walmart stock holders with operations in profit can keep their positions

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Analysts' recommendations to buy or sell Walmart stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last month, 2 brokerage ratings were published for Walmart. General sentiment is bullish, with 2 out of 2 publishing optimistic forecasts

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Walmart ratings

Brokerage firmRating
Jun 22nd, 2020
Guggenheim Strong buy
Jun 22nd, 2020
UBS Group NeutralStrong buy

Technical analysis

Downtrend breakout

WMT at new Highs

Walmart marked all-time highs (ATH) yesterday at $133.63, and cleared the field for new highs as there are no further resistances. Previous ATHs were in mid-April

SMAs overview

Moving averages are simple indicators for investors to detect market momentum. A moving average is the average price of a stock over a set period of time. Moving averages are usually calculated on different periods depending on the trading timeframe 21, 50, 100 and 200 days are the most usual moving averages. Learn more about Moving Averages from sources like Wikipedia and Investopedia

Supports and resistances

Technical analysts use support and resistance levels to find price points on a chart that may act as obstacles, containing the price of a stock to move up or down. Supports are levels where the price may find support as it falls. This means that the price is more likely to "rebound" this level rather than break through it. Nevertheless, if the price breaks down the support, it is likely to continue declining until finding another support level. On the other side, resistances are where the price may find a curb as it rises. Again, this means that the price is more likely to "rebound" at this level, and if it finally breaks this level, it will rise easily until it hits the next resistance

The current resistances are:

  • R1: $132.80 (0.59% above)
  • The current support levels are:

  • S1: $131.99 (-0.02% below)
  • S2: $126.96 (-3.83% below)
  • S3: $123.73 (-6.28% below)
  • Bollinger bands

    The so-called Bollinger bands are a well-known technical strategy created by John Bollinger. It comprises three bands that are outlined superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    When the price moves out of the band (above the upper line or below the lower line) it tells that the price action is currently having a very strong momentum and therefore can correct the trend to the average. For this case, the price is over the upper band, which should mean a near-term corrective movement (at least) until it is below the band

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of financial markets. Its objective is to map the current and past weakness or strength of a stock or market based on the closing prices of a recent trading period. Oscillator indicators, such as relative strength, are designed to indicate values in the range of 0-100. The relative strength indicator is one of the best known and most widely used indicators, invented by J. Welles Wilder in the late 1970s

    When the Relative Strength Indicator moves for so long below 70 and above 30, without indicating moments of overvaluation and undervaluation, the indicator becomes of little use, and we currently are in one of these cases.

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    Earnings and financials

    Walmart hosted the quarterly investors call and released the second-quarter report in mid-May. Walmart beat market estimates and posted an EPS of $1.18, that is a 5.36% surprise versus the previous forecasts of $1.12. Reported revenues were $134.6 billion versus estimates of $132.7 billion.

    By comparison, the EPS for the same quarter last year was $1.13, so reported EPS is a increase of 4.42%. Turnover climbed a 8.65% on an annualized basis in the Q2, from $123.9B to $134.6B last quarter.

    Walmart is hosting the quarterly earnings call on mid next August. Wall Street forecasts a per-share earnings of %s of $1.23, compared to Q2 that made $1.18. Financial reporting day has a more than usual risk for traders as the data provided can gap up or down the price with exceptionally low volume and not respecting your buy or stop-loss orders. It's always good to review company's website to confirm time and details on the earnings call and the earnings report.

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