December consumer confidence to impact retail sector

What's Happening With WMT View more about WMT >

Retail is in focus with the holiday shopping season in full swing and on December 27 the market will see the December consumer confidence report. A strong reading will give retailers like Wal-Mart (WMT) a much-needed boost to end the year. WMT stock has fallen 11.5% in 2018.

Technical Analysis

WMT was recently trading at $87.28 down $22.7 from its 12-month high and $5.5 above its 12-month low. InvestorsObserver’s Stock Score Report gives WMT a 57 long-term technical score and a 52 short-term technical score. The stock has recent support above $86 and recent resistance below $94. Of the 22 analysts who cover the stock 12 rate it Strong Buy, 1 rate it Buy, 9 rate it Hold, 0 rate it Sell, and 0 rate it Strong Sell, WMT gets a score of 48 from InvestorsObserver’s Stock Score Report.

Analysts' Thoughts

Mega retailer Wal-Mart has struggled since reporting mixed numbers in November. Earnings topped estimates but sales were weaker than expected and the market pounced on the stock which continues to look for support. Wall Street is worried that a volatile stock market rising prices stemming from the trade war between the U.S. and China will have an impact on consumers, and traders will get a better idea of what consumers are thinking when December’s consumer confidence numbers are released December 27. Should the report show strength big retailers like Wal-Mart and Target (TGT) that have struggled over the last month could finally find support and move higher through the remainder of the year. WMT is down around 17% from its November high, which has pulled the stock’s forward P/E down to 18.3. Given the extent of the current selloff, a good reading on consumer confidence could help investors quickly make back some of the stock’s recent losses. Analysts have a $107.48 average price target 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:
    $111.74
  • Previous Close:
    $112.82
  • Change:
    $-1.08 (-0.96%)
  • Open:
    $113.12
  • Volume:
    2,134,232
  • Average Volume (100 Day):
    5,998,831
  • Market Capitalization:
    $319.0 B
  • Day's Range:
    $111.65 - $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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