Social Dissonance 2.0 (WMT)

Wal-Mart Stores Inc (WMT)

The people of Walmart come in all shapes and sizes, but nothing has delivered as much excitement as the recent market sell-off across the consumer staples sector.

Just remember all is not lost, and I am sure the world’s largest company by revenue will survive the market turmoil as it has for generations.

Click logo to view Wal-Mart Stores Inc (WMT) Shares.
on EasyEquities

Fundamentals

The recent fourth-quarter earnings release from the 18^th of February 2020 was a rare miss for Walmart, to say the least with misses across Revenues and Earnings Per Share (EPS) only the second time in 18 quarters. "We started and finished the quarter with momentum, while sales leading up to Christmas in our U.S. stores were a little softer than expected," - Doug McMillon (CEO).

Looking forward, Walmart sees 2021 comparable sales growth at 3% and earnings per share at $5.15, which is lower than the $5.22 expectation. Take note that none of the coronavirus (COVID-19) factors was considered with Walmart’s forward guidance.

Walmart has also reduced its operating hours to serve better customers who have gone into a panic buying state which has seen shortages of certain items on the shelves.

Wal-Mart Stores Inc (WMT) share overview:

• Sector: Consumer Staples
• Market Cap of $354.99 Billion
• Dividend Yield: 1.89 %
• Price/Earnings (LTM): 24x
• Price/Book: 3.62
• PEG (TTM): 4.51
• 52 Week Range low of $96.94 and $121.28 per share high.

Wal-Mart Stores Inc (WMT) has declared a $0.54 per share dividend and the stock will go ex-dividend on the 19^th of March 2020 with the dividend payable date scheduled for the 6^th of April 2020. For more details on other company’s dividends expected over the week, head on over to the Nasdaq Dividend Calendar.

Chart Life

The price action is testing the 2019 base breakout formation, which is now a prominent support level at $104.98 per share. If this support level does not hold, then we might see the price action target lower levels around $99.43 per share or lower, which would give better entries. 

Source - Bloomberg

Informed decisions

History does and will repeat itself as we head into this bear market cycle on the financial markets in 2020. Yes, the markets do correct, and these corrections usually last anything from 3 weeks to 6 months judging by history so don't panic its all part of the cycle.

Luckily for smart investors, if history is anything to go by, then buying opportunities will present themselves in the near term as the new bull rally starts.

Click logo to view Wal-Mart Stores Inc (WMT) Shares.
on EasyEquities

Portfolio particulars

• Portfolio Neutral (Current)*
• Portfolio Buy opportunity: Neutral**
• WhatsTheBeef long term target price: Neutral.

Know your company: Wal-Mart Stores Inc (WMT)

• Wal-Mart is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores, headquartered in Bentonville, Arkansas.
• Sam Walton founded the company in 1962, and as of the 31st of January, 2020, Walmart has 11,503 stores and clubs in 27 countries, operating under 55 different names.
• Wal-Mart operates under the name Walmart in the United States and Canada, as Walmart de México y Centroamérica in Mexico and Central America, as Asda in the United Kingdom, as the Seiyu Group in Japan, and as Best Price in India to name a few.

Sources – EasyResearch, SeekingAlpha, Zacks Research, Yahoo finance, KOYFIN, Bloomberg.

Take note: chart and price, company data was taken on 16/03/2020.

Follow Barry Dumas
@BEEF_FINMARKETS

Barry is a market analyst with GT247, with a wealth of experience in the investment markets. Now in his tenth year in the markets, Barry "The Beef" Dumas brings a combination of technical analysis and fundamental insights to the table.