Can Walmart (WMT) Deliver Strong Q1 Online Sales Growth?

What's Happening With WMT View more about WMT >

Mega retailer Walmart (WMT) will release its first-quarter results before the market open on May 16. Analysts forecast earnings of $1.02 on sales of $125.2 billion. During the same period last year Walmart earned $1.14 on sales of 122.7 billion. WMT is up 7.4% on the year.

Technical Analysis

WMT stock was recently trading at $100.07 down $6.14 from its 12-month high and $18.29 above its 12-month low. InvestorsObserver’s Stock Score Report gives WMT an 82 long-term technical score and a 75 short-term technical score. The stock has recent support above $96 and recent resistance below $104. Of the 21 analysts who cover the stock 11 rate it Strong Buy, 2 rate it Buy, 8 rate it Hold, 0 rate it Sell, and 0 rate it Strong Sell, WMT gets a score of 64 from InvestorsObserver’s Stock Score Report.

Analysts' Thoughts

Walmart has done a great job of adapting in the e-commerce world, with online sales up 43% year over year last quarter. Wall Street will want to see continued strength in the company’s digital sales. Walmart has also invested in its employees and its stores to boost consumer satisfaction which has resulted in same store sales growth. Profits have fallen 1.3% per annum the last five years, but analysts see earnings growth of 4.8% next year and an annual rate of 3.2% over the next five years. WMT stock is in the upper end of its 52-week range with a forward P/E of 20.1. Its valuation does not raise alarms, but the stock is priced for perfection and Walmart will need to continue posting strong online numbers and outpacing estimates on the bottom line. The street expects a small earnings beat with a whisper number of $1.05 for the quarter and analysts have an average price target of $110.05 on the stock.

WMT
About Walmart Inc.

Walmart Inc is the largest retailer in the world with around $500 billion in annual revenue and about 11,700 stores worldwide (including supercenters, wholesale warehouse clubs under the Sam's Club banner, and small-format stores across 28 countries). It is also expanding into the growing e-commerce channel, as evidenced by its acquisition of Jet.com in 2016 and the 2018 purchase of a 77% stake in Flipkart. Sales through this channel represent about 5% of its total revenue. Groceries and consumables account for roughly 60% of sales, with the remainder from general merchandise including fuel, hardlines, apparel, entertainment, and home goods. The firm is known for an everyday low price approach.

  • Last Price:
    $102.67
  • Previous Close:
    $101.86
  • Change:
    $0.81 (0.80%)
  • Open:
    $102.18
  • Volume:
    4,268,599
  • Average Volume (100 Day):
    7,098,123
  • Market Capitalization:
    $294.4 B
  • Day's Range:
    $102.08 - $102.89
  • Dividend Yield:
    2.08%
  • 52-week Range:
    $106 - $81.78
  • P-E:
    35.50
  • EPS:
    $2.87
  • Earnings Date:
    8/15/19
  • Ex Dividend Date:
    8/8/19
  • Sector:
    Consumer Defensive
  • Industry:
    Discount Stores
  • Analyst Average Recommendation:
    Moderate Buy

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