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.

America's largest retailer by sales, Walmart operates over 11,300 stores under 58 banners, selling a variety of general merchandise and grocery items. Its home market accounted for 76% of sales in fiscal 2019, with Mexico and Central America (6%), the United Kingdom (6%), and Canada (4%) its largest external markets. In the United States, around 56% of sales come from grocery, 33% from general merchandise, and 11% from health and wellness items. The company operates several e-commerce properties apart from its eponymous site, including Flipkart, Jet.com, and shoes.com (it also owns a roughly 10% stake in Chinese online retailer JD.com). Combined, e-commerce accounted for about 5% of fiscal 2019 sales.

  • Last Price:
    $111.98
  • Previous Close:
    $112.82
  • Change:
    $-0.84 (-0.74%)
  • Open:
    $113.12
  • Volume:
    3,478,553
  • Average Volume (100 Day):
    5,998,831
  • Market Capitalization:
    $319.7 B
  • Day's Range:
    $111.57 - $113.20
  • Dividend Yield:
    1.88%
  • 52-week Range:
    $115 - $85.78
  • P-E:
    39.30
  • 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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