walmart
walmart
WMT
$0.42
0.26%
34%
IBD stock price analysis
- The buy point at 165.85 with a shallow cup base is not far away.
- Relative force line rises rapidly and hits new highs
Industry group ranking
new pattern
cup
*This is not real-time data. All data shown was captured on October 26, 2023 at 12:31 PM ET.
dow jones retail giant walmart (WMT) is the IBD stock for Thursday. While Walmart stock is hovering around a buy point, the relative strength line has soared to new highs amid the market downturn.
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After reporting strong growth at the start of the year, retailers largely balked in the second quarter on concerns about a slowdown in consumer spending. Meanwhile, organized crime and retail theft continue to depress revenues and become a growing problem for the industry.
Walmart’s profit growth slowed to 4% in Q2 2024 after two quarters of accelerating double-digit growth. Revenue growth has been in the mid-to-high single digits for the past five quarters. Still, the results beat expectations for a 3.4% decline in profit on a 4.8% increase in sales.
Walmart’s U.S. e-commerce sales rose 24% in the quarter. Comparable sales excluding fuel rose 6.3%, beating Wall Street expectations for a 4.3% increase. Same-store sales at Sam’s Club increased 5.5%, and like-for-like foot traffic at Walmart U.S. stores increased 6.4%.
Walmart has raised its earnings outlook, forecasting full-year adjusted earnings of $6.36 to $6.46 per share, based on net sales growth of 4% to 4.5%. This estimate beat analysts’ estimates of $6.30 per share and was in line with revenue estimates of $637.93 billion. The company previously expected EPS of $6.10 to $6.20 on revenue growth of 3.5%.
Walmart expects net sales to increase 3% and earnings per share to be in the range of $1.45 to $1.50 for its third-quarter results on Nov. 16. Analysts surveyed by FactSet expected third-quarter profit of $157.22 billion, or earnings of $1.49 per share.
Dow Jones stocks rank No. 3 in the retail giant discount chain industry group, according to IBD Stock Checkup. costco (COST) is the leading industry association.
Among the discount stores, Costco is Ollie’s Bargain Outlet (ori), BJ’s Wholesale Club (BJ) And TJX (TJX) is holding up pretty well.
rival the goal However, TGT has fallen 25.7% since the beginning of the year and is trading at its lowest level since April 2020.
walmart stocks
WMT stock is trading at a shallow cup base with a buy point of 165.85, matching its highest price since September 13th. The buy zone extends 5% above the buy point to 174.14.
Walmart’s relative strength line is surging and hitting new highs. The RS line (the blue line on the chart provided) tracks the stock’s performance relative to the S&P 500 index. The RS line made a new high before the stock price rose, which is very bullish.
Walmart stock has an RS Rating of 89. The stock has an EPS rating of 83.
WMT stock has an overall rating of 87 out of 99. The overall rating combines various technical indicators into one easy-to-read score.
The market is in a correction, which means it’s not a good time to buy new stocks. IBD currently recommends limiting portfolio exposure to a maximum of 20% of capital. WMT stock is a good candidate to put on your watchlist and wait for the market to have a follow-through date.
Walmart stock has increased nearly 15% since the beginning of the year.
Follow Harrison Miller on X/Twitter for stock news and updates. @IBD_Harrison
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