Walmart stock: buy or sell
Updated on:
Jan 27th, 2021
2
Walmart stock brief
- Walmart closed on Tuesday at $147.51 after only changing a 0.90%.
- FIX posted a strong sell rating for Walmart on Monday, targeting $131.00
- 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.
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 just one buy setup eligible:
ATH buy setup
All-time Highs is always an excellent buy point for those who like to buy high and sell higher. The good point of buying at ATHs is that price doesn't struggle with upper resistances, and usually it rises fast. However, you must always be aware of a possible bulls trap that may trigger your buy order and then falls sharply. That's why a stop loss is so important. Price is now at 3.79% of all-time highs and it can breakout at any time, so if you want to trade this setup it's recommended to setup your order at $153.10. Place your stop-loss at $138.39
| Buy setup | Buy point | Stop loss | Risk |
| ATH buy setup | $153.10 | $138.39 | 9.61% |
Should I sell Walmart stock?
Knowing when to sell a stock is even harder than knowing when to buy it. Trading strategies prevent us from making impetuous decisions based on our personal feelings or the buzz surrounding the market. We like very simple setups to guide us on when is a good time to sell a stock. Be aware that these setups should not be used for selling short Walmart stock
As a rule of thumb, you should never hold an operation that shows a losses greater than those expected at the time of purchase. The timing to sell your stock always has to be ruled 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
Walmart ratings
In the last month, 2 brokerage ratings were published for Walmart
| Brokerage firm | Rating |
|---|---|
| Jan 8th, 2021 | |
| Credit Suisse Group | |
| Jan 25th, 2021 | |
| FIX | Neutral → |
Walmart stock analysis
SMAs overview
Supports and resistances
The current resistances are:
The current support levels are:
Bollinger bands
The evolution of the Bollinger Bands on the chart shows that they are relatively tight (3.69%), which clearly means that price volatility is low. The narrowness of the Bollinger bands is often a signal of a sudden price movement (up or down), so we must be careful and manage our buy or sell orders correctly
Relative strength index
The RSI dropped below the overbought level of 70 last November after just crossing to the overbough zone for just one day (weak signal). The RSI reading on Tuesday was 55.19. Walmart shares dropped a 2.88% since that level was lost
Walmart stock price history
Walmart started trading priced at an adjusted price1 of $0.04 on Aug 1972. Since then, WMT stock surged by 368,675.00%, with an average of 7,680.73% per year. An investment of $1,000USD on the IPO would have a value of $3,687,750.00 nowadays.
1: Adjusted price after possible price splits or reverse-splits
Price target for Walmart stock
How much a stock will be priced tomorrow or next week is quite unpredictable. Banks and financial organisations publish their analysis predicting how a particular stock will performance in the future.
The following table shows the price forecasts released by analysts for the last 30 days. Again, these estimates are not direct recommendations for individual traders and must not be followed blindly.
Averaging all price targets exposed below, the forecasted price for Walmart stock is $146.00. That is a 1.02% than the last price ($147.51).
| Brokerage firm | Price target |
|---|---|
| Jan 8th, 2021 | |
| Credit Suisse Group | $161.00 |
| Jan 25th, 2021 | |
| FIX | $157.00 → $131.00 |
Earnings and financials
Walmart Inc. ($WMT) posted earnings of $1.34 per share last November, enhancing the analysts consensus estimate of $1.18 per share. This Q3 report represents an earnings surprise of 13.56%. On the contrary, reported sales were $134.7 billion, consistent with analysts' estimates.
Same quarter one year ago, reported EPS was $1.16, so recently posted EPS means an increase of 15.52%. Looking at revenues, figures moved up a 5.25% compared to $1.3T year over year.Walmart ($WMT) is posting financial report mid next February. Forecasted for this quarter is $1.50, compared to $1.34 that was reported for Q3.
Walmart competitors
Walmart belongs to the Discount Stores industry, where it has industry peers.
The following are some of Walmart biggest competitors:
| Company | Market cap | Rating | Bullish ratings1 |
|---|---|---|---|
| Walmart ($WMT) | $414.9B | Neutral | 1 |
| Amazon ($AMZN) | $1.6T | Buy | 3 |
| Costco Wholesale ($COST) | $161.2B | Buy | 1 |
| Target ($TGT) | $99.7B | Buy | 3 |
| Dollar General ($DG) | $50.5B | | 1 |
| eBay ($EBAY) | $38.9B | Neutral | 0 |
| Dollar Tree ($DLTR) | $25.6B | Neutral | 0 |
| Kohl's ($KSS) | $6.9B | Buy | 2 |
| Macy's ($M) | $3.9B | Buy | 1 |
1 In the last 30 days.
Walmart performance
To better understand Walmart performance you must compare its gains with other related stocks in same sector or industry.. For Walmart, the benchmark is made against Amazon, Costco Wholesale, Target, Dollar General, eBay, Dollar Tree, Kohl's and Macy's.
| Company | 1m | 3m | 6m |
|---|---|---|---|
| Walmart ($WMT) | 2.80% | 3.60% | 13.10% |
| Amazon ($AMZN) | 4.10% | 4.00% | 8.90% |
| Costco Wholesale ($COST) | 1.00% | 2.30% | 14.70% |
| Target ($TGT) | 10.50% | 19.00% | 54.40% |
| Dollar General ($DG) | -2.30% | -3.50% | 8.80% |
| eBay ($EBAY) | 15.50% | 11.00% | 4.20% |
| Dollar Tree ($DLTR) | -2.00% | 11.40% | 10.90% |
| Kohl's ($KSS) | 16.20% | 92.70% | 115.40% |
| Macy's ($M) | 38.60% | 103.40% | 121.70% |
Important:
The opinions written in this article are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this paper does not have any knowledge of the individual conditions of the reader, his or her 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 Thoughts are posted for learning reasons onlyWalmart summary
| Tuesday, January 26th, 2021 | |
|---|---|
| Open | $145.63 |
| Close | $147.51 |
| Day range | $145.47 - $147.81 |
| Previous close | $146.2 |
| Session gain | 0.90% |
| Average true range | $2.59 |
| 50d mov avg | $147.32 |
| 100d mov avg | $143.95 |
| 200d mov avg | $134.91 |
| Earnings date | February 16th, 2021 |