Walmart shares are trading at a new 52-week high, adding more than 8.5% in value after the publication of a strong quarterly report with results above market expectations on August 15. Revenue grew 1.8% YoY to $130.38 billion, with a comparable sales growth of 2.8%. Net income per share was $1.26 against the last year’s loss. Moreover, the company raised its forecast for financial indicators for the fiscal year 2020.
Last week Walmart Inc. shares grew by 2.41%. The S&P 500 index increased by 3.05% for the same period.
| Scenario |
| Timeframe |
Intraday |
| Recommendation |
BUY STOP |
| Entry Point |
118.00 |
| Take Profit |
121.00, 124.00, 126.00 |
| Stop Loss |
117.00, 115.00 |
| Key Levels |
109.00, 111.00, 114.50, 118.00 |
| Alternative scenario |
| Recommendation |
SELL STOP |
| Entry Point |
114.45 |
| Take Profit |
109.00, 106.00 |
| Stop Loss |
117.50 |
| Key Levels |
109.00, 111.00, 114.50, 118.00 |
Trading tips
Long positions can be opened after the price consolidates above the level of 118.00. The closing of the profitable positions is possible at levels 121.00, 124.00 and 126.00. Stop loss will be located at 115.00.
Short positions can be opened after the price consolidates below the level of 114.50 with the targets at 109.00–106.00. Stop loss – 117.50.
Implementation period: 3 days.
Support and resistance
The company’s shares stabilized after a protracted rally. At the moment, #WMT quotes are consolidating near key extremes. The local support and resistance levels are the levels of 114.50 and 118.00. In the near future, technical correction of the trading instrument is not ruled out. Indicators reflect the strength of buyers: the price has fixed above MA (50) and MA (200); MACD is in the positive zone. Nevertheless, it is better to open the positions from the key levels.
A comparative analysis of the multiples of the company and competing companies indicates that #WMT is underpriced.
Resistance levels: 118.00.
Support levels: 114.50, 111.00, 109.00.
| S3 |
90.41 |
100.95 |
111.36 |
97.87 |
— |
| S2 |
100.95 |
104.98 |
112.33 |
101.36 |
— |
| S1 |
107.61 |
107.47 |
113.29 |
108.41 |
109.55 |
| P |
111.49 |
111.49 |
111.49 |
111.90 |
112.47 |
| R1 |
118.15 |
115.52 |
115.23 |
118.95 |
120.09 |
| R2 |
122.03 |
118.01 |
116.19 |
122.44 |
— |
| R3 |
132.57 |
122.03 |
117.16 |
129.49 |
|
From Finviz.com
| Sep-05-19 |
Reiterated |
Morgan Stanley |
Overweight |
$115 → $125 |
|
| Aug-16-19 |
Upgrade |
Gordon Haskett |
Accumulate → Buy |
$125 |
|
| Aug-16-19 |
Reiterated |
Telsey Advisory Group |
Outperform |
$118 → $125 |
|
| Aug-16-19 |
Reiterated |
BofA/Merrill |
Buy |
$120 → $135 |
|
| Jul-11-19 |
Initiated |
Goldman |
Buy |
$123 |
|
| May-17-19 |
Upgrade |
Gordon Haskett |
Hold → Accumulate |
$115 |
|
| May-08-19 |
Downgrade |
Wolfe Research |
Peer Perform → Underperform |
|
|
| May-03-19 |
Upgrade |
Bernstein |
Mkt Perform → Outperform |
|
|
| Mar-20-19 |
Initiated |
Evercore ISI |
In-line |
$95 |
|
| Feb-20-19 |
Reiterated |
Telsey Advisory Group |
Outperform |
$113 → $115 |
|
| Feb-08-19 |
Initiated |
Buckingham Research |
Neutral |
|
|
| Jan-23-19 |
Upgrade |
Morgan Stanley |
Equal-Weight → Overweight |
|
|
| Nov-20-18 |
Downgrade |
Daiwa Securities |
Outperform → Neutral |
|
|
| Sep-14-18 |
Resumed |
Goldman |
Neutral |
$101 |
|
| Aug-17-18 |
Reiterated |
Telsey Advisory Group |
Outperform |
$105 → $107 |
|
| Aug-17-18 |
Downgrade |
Raymond James |
Strong Buy → Outperform |
|
|
| Jul-25-18 |
Downgrade |
Gordon Haskett |
Buy → Hold |
|
|
| May-10-18 |
Reiterated |
Telsey Advisory Group |
Outperform |
$110 → $105 |
|
| Apr-19-18 |
Upgrade |
Argus |
Hold → Buy |
$100 |
|
| Apr-06-18 |
Initiated |
Loop Capital |
Hold |
$92 |
|
from
https://alphabetastock.com/2019/09/06/279450/
No comments:
Post a Comment