Walmart (WMT) Stock Drops Over 6%Walmart (WMT) Stock Drops Over 6%
As shown in the Walmart (WMT) stock chart, trading on 20th February closed at $97.26, whereas the previous day, the stock was trading around $103. The decline of over 6% marks the largest drop in Walmart (WMT) stock price in 15 months.
Why Did Walmart (WMT) Stock Drop?
The bearish momentum emerged after Walmart’s earnings report, which was actually quite strong, as:
→ Sales growth reached 5.2%;
→ The company exceeded analysts' expectations (earnings per share were 2% higher than forecasts);
→ Walmart announced a 13% dividend increase.
However, WMT stock fell because the retail giant released a profit forecast for 2025 that came in below market expectations. This was attributed to uncertain consumer behaviour and geopolitical conditions. Additionally, investors may have been dissatisfied with increased executive compensation.
Walmart (WMT) Stock Technical Analysis
The chart shows that after the decline, the price is consolidating near support levels formed by:
→ The lower boundary of the ascending channel;
→ Former resistance around $96.
The situation resembles November 2023, when the market also reacted negatively to an earnings report. However, WMT stock later recovered, and a similar scenario could unfold in 2025.
Analytical Walmart (WMT) Stock Price Forecasts
Analysts remain optimistic. According to Yahoo Finance:
→ The average 12-month price target for WMT is $107.25;
→ Of the 42 analysts surveyed, 38 recommend buying WMT stock.
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WMT
Breaking: Walmart Set To Report Earnings Before the BellWalmart will report fiscal fourth-quarter earnings before the bell on Thursday.
Walmart (NYSE: NYSE:WMT ) will report its latest quarterly earnings before the bell on Thursday, as investors try to parse whether softer retail sales in January were a blip or a bigger warning sign.
As Walmart (NYSE: NYSE:WMT ) is the top grocer in the U.S., investors often view it as a pivot of consumer health. The company will report its holiday-season results and is expected to give a forecast for the year ahead. Its leaders may also preview how they see the economic backdrop in the U.S. and weigh in on the potential effect of federal policy decisions, such as tariffs.
According to a survey of analysts by LSEG, here’s what Wall Street expects for the big-box retailer’s fiscal fourth quarter,:
Earnings per share: 64 cents
Revenue: $180.01 billion
Retail sales for January came in weaker than expected, setting off alarm bells for some investors. The metric dropped 0.9% for the month, which was below the Dow Jones estimate for a 0.2% decline.
Holiday data came in strong across the retail industry, as sales rose 3.8% year over year to total $964.4 billion in November and December, according to the National Retail Federation. The trend reflected a return to more typical pre-pandemic gains. Average sales growth during the holiday season was 3.6% from 2010 to 2019, according to NRF data, but shot up during the Covid-19 pandemic.
Some unique factors could work in Walmart’s favor, regardless of the economic backdrop. The big-box retailer’s online sales have been climbing, with 10 straight quarters of double-digit gains. Its advertising business and third-party marketplace are small compared to Amazon’s, but the segments have posted gains and driven higher margins than Walmart’s retail business.
Furthermore, Walmart has attracted more customers with higher incomes. Walmart CEO Doug McMillon said in November that households earning more than $100,000 drove 75% of market share gains in the third quarter.
Simeon Gutman, a retail analyst for Morgan Stanley, raised Walmart’s price target to $153 on Tuesday, pointing to the retailer’s newer and more profitable moneymakers including its advertising business and subscription-based membership program Walmart+.
Technical Outlook
As of Wednesday’s close, shares of Walmart are up about 83% over the past year. Shares closed on Wednesday at $104.00, up about 15% so far this year and outpacing the approximately 4% gains of the S&P 500 during the same period.
As of the time of writing, NYSE:WMT is trading down 0.54% on Thursday's premarket trading. NYSE:WMT ' shares has an RSI of 70 which is somewhat oversold but it hints at a potential bullish surge amidst a falling wedge pattern and as traders awaits earnings reports, a positive earnings beat could send NYSE:WMT on a bullish spree similarly, should selling pressure surmount, the 38.2% Fibonacci retracement level is serving as support point for Walmart shares (NYSE: NYSE:WMT )
WMT Walmart Options Ahead of EarningsIf you haven`t bought WMT before the previous earnings:
Now analyzing the options chain and the chart patterns of WMT Walmart prior to the earnings report this week,
I would consider purchasing the 110usd strike price Calls with
an expiration date of 2025-4-17,
for a premium of approximately $2.33.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Bonus Analysis: 80 Stocks Reviewed, 15 Stand Out!Hello readers!
First things first – if you find value in these analyses, don’t hesitate to hit the Boost/Like button! 🚀 Your support helps keep these ideas coming and is greatly appreciated. Thanks a lot!
As an extra bonus for everyone who participated in the survey, I decided to go through all the mentioned stocks—a total of 80 different names—and pick out the ones that stood out to me from a technical perspective. Made just a brief overview.
Previously, I covered the top 15 most mentioned stocks, but now it's time to highlight 15 additional setups that caught my eye with very short descriptions. These are purely technical insights—no fundamental analysis here.
To be said, many of the stocks mentioned were at all-time lows, which means technical analysis isn’t much help. If a stock is sitting at the bottom with no structure, you’re relying purely on fundamentals to make a decision.
With that said, let’s take a look at the charts that stood out.
1. Oklo (OKLO) – Nuclear Energy
Strong momentum, but for me, the most important area is $20 to $30.
2. Tecnoglass (TGLS) – Glass and Window Manufacturing
Steady higher highs - The strongest zone sits between $50 to $60.
3. MicroStrategy (MSTR) – Software and Bitcoin Holdings
Extremely volatile but key interest zones for me are $170 to $240, with $200 as a strong mid-point.
4. Everest Group (EG) – Reinsurance and Risk Management
$250 to $280 was a strong resistance, now acting as support. Trendline retest and third-touch scenario align well with the $230 to $280 range.
5. H. Lundbeck (HLUN_B) – Pharmaceuticals
Resistance turned support has already played out but still, there might be some volatility, and $35 to $40 DKK remains the strongest zone.
6. Alpha Group International (ALPH) – Financial Services
Breakout and retest already worked well, so waiting for slightly better prices might be the best move but it is valid.
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I’ve picked out the first six stocks from the survey and shared my technical insights here on TradingView but this is just the beginning.
9 stocks in Substack with some bigger names like Alibaba (BABA), Starbucks (SBUX), Snowflake (SNOW), Uber (UNER), and Netflix (NFLX) have also caught my eye, and I’ll be covering them on my Substack along with more technical breakdowns.
Substack-ENG link is in my BIO (clicking the website icon), or you can find it by scrolling up - just below the main image.
See you there,
Vaido
100% Gains in Walmart! What’s Next at This Key Level?Hello readers,
Back in July 2023, I pointed out a major breakout in Walmart (WMT) after years of struggle around the $150-$154 zone. Fast forward, and here we are – Walmart has doubled in price! 📈
Of course, this isn't the raw $300 we might expect because of the 3-for-1 stock split, but the percentage gain remains a solid 100%+ from our entry.
What Now?
$100 is a round number, and historically, NYSE:WMT has reacted to these psychological levels. The market has started to range in these level, suggesting some hesitation.
Taking partial or full profits could be a smart move – but as always, the choice is yours!
This is just a reminder and a heads-up to stay aware of price action. Trade smart! 💡
Let me know your thoughts – are you holding or booking profits?
Cheers,
Vaido
WALMART Bullish Leg of Channel Up on full extent.Walmart (WMT) has been trading within a Channel Up since January 2024 and is being supported by the 1D MA50 (blue trend-line) since August 14. The last contact with the 1D MA50 has been on January 16 and is what started the current Bullish Leg.
The standard %rise within this pattern has been +21.86% and as a result our short-term Target is $108.00.
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WMT Showing Bullish Momentum – Move Toward $99.00 ExpectedNYSE:WMT is demonstrating strong bullish momentum, driven by consistent price strength and support from key moving averages. The recent price action confirms buyers' dominance, with a clear uptrend evident on the chart. The stock has advanced steadily, breaking out of prior consolidation zones, and is now poised to target the $99.00 level, which serves as the next significant milestone.
This setup aligns with the expectation of a bullish continuation, offering a potential long opportunity if pullbacks or consolidations occur near current levels.
If you agree with this analysis or have additional insights, feel free to share your thoughts here!
WALMART Gearing Up for a Bullish RallyNYSE:WMT is trading within a well-defined uptrend supported by a rising trendline. The consistent higher highs and higher lows confirm the bullish structure. The price is currently consolidating near the trendline, indicating a potential continuation of the uptrend.
If buyers maintain control and the price respects the trendline, the stock could rally toward the 102.43 target level, which aligns with a measured move projection.
For confirmation, I’ll look for bullish candlestick patterns or a breakout above recent consolidation highs. However, if the trendline support is breached, it could signal a potential shift in the trend.
Let me know your thoughts or if you see the setup differently!
WALMART: The first buy opportunity of 2025 is here.Walmart has turned neutral on its 1D technical outlook (RSI = 52.502, MACD = 0.350, ADX = 31.554) as it is trading sideways on top of the 1D MA50. This is a strong support level that has been unbroken since August 14th 2024 but the sideways trending 1D RSI resembles all times since September 2022 that it crossed under it and then rallied. Consequently this is already a strong buy signal, regardless of whether the price breaks the 1D MA50 or not as, at worst it is expected to trade sideways for another 1-2 weeks and then rebound. We aim for a +22% price increase (TP = 108.00) like the last two bullish waves delivered.
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WALMART on top of 10-year Channel. Correction or break-out?Walmart (WMT) has been trading within a 10-year Channel Up pattern since the January 12 2015 High. The price has finally reached the top (Higher Highs trend-line) of this decade-long bullish pattern and that is easily identifiable by the 1W RSI sequence.
The rally that started on the May 16 2022 bottom is very similar to the one that started on the October 26 2015 bottom. The two fractals initially started rebounding and on the first 0.5 Fibonacci test, they held it and entered a more aggressive rally, supported by the 1W MA50 (blue trend-line).
The past one peaked just above the 2.5 Fibonacci extension (January 29 2018). The current week has put us above the 2.5 Fib ext and right at the top of the Channel Up. If it replicates the Jan - May 2018 correction, it could test $66.50. If it closes above the Channel Up though, a new bullish pattern will emerge and we will re-evaluate with the price action we get at that time. However it is easily understandable that having an SL at the top is worth taking the short's risk as the potential reward is much greater than the risk. And if it fails the loss is minimal and we can still follow the bullish trend with a break-out buy.
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WMT Walmart Options Ahead of EarningsIf you haven`t bought the dip on WMT:
Now analyzing the options chain and the chart patterns of WMT Walmart prior to the earnings report this week,
I would consider purchasing the 80usd strike price Puts with
an expiration date of 2025-6-20,
for a premium of approximately $3.60.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
WALMART: Forming a Megaphone Top. Sell signal.Walmart is fairly bullish on its 1D technical outlook (RSI = 59.199, MACD = 0.980, ADX = 43.049) as the price is near the top of the 2024 Bullish Megaphone and has been forming a top since the September 16th High. This slowdown can be seen on the two prior top formations and is more obvious on the 1D RSI which prints a Channel Down when the price peaks on a Channel Up. This Bearish Divergence is the signal we need to go short next week. We aim for just under the 1D MA50 (TP = 77.50) or take the profit if the RSI hits the buy entry line first.
See how our prior idea has worked out:
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WALMART Short-term correction on the wayLast time we looked at Walmart (WMT) we gave a solid sell signal (March 27, see chart below), which served as a pull-back step for the stock's amazing recent Bullish Leg:
This time, the Channel Up it's been trading on is more aggressive, with each Bullish Leg posting rallies of +22% and 23.60% and bottoms made only just under the 1D MA50 (blue trend-line), presenting easy buy opportunities.
As the moment, the price is already on the Channel's top (Higher Highs trend-line), having completed a +22% rise and technically the maximum it can go to is +23.60%. As a result, we expect a short-term correction now of at least -6.40% (similar to the last one). We estimate that to be around $77.00 and once the 1D MA50 breaks again, we will get our new buy opportunity, possibly on the 4th candle after the break.
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WMT - Wallmart Hit a Resistance from 1993Going to try some puts, might not work but this is a great resistance, a long with the markets look to be possibly topping all around for a long time this seems like a good r/r. My buddy kept talking about how amazing it is so I looked lol, good spot to short even if it doesn't work out.
Walmart’s (WMT) Earnings Could Signal Economic TrendsAt first glance, Walmart's earnings might not seem critical, but they provide key insights into consumer behavior and could serve as an indicator for future retail sales. If Walmart reports disappointing earnings, it could signal broader economic concerns. As one of the largest retailers in the U.S., a decline in Walmart's customer base may indicate that consumers are tightening their belts, which is never a good sign for the economy.
This is why we're closely monitoring Walmart. Sometimes, stocks can act as a barometer for the market. While we’re hopeful for a strong earnings report, we're also anticipating a potential price dip into the $43 to $36 range. Whether this occurs immediately or in the coming weeks is uncertain, but we believe it’s a likely scenario. If Walmart’s price drops into this range, it could present a compelling buying opportunity. The golden pocket Fibonacci retracement aligns with this area, and there’s also a significant, yet untagged, liquidation level at $40 that we're keeping an eye on.
We’ll be closely watching Walmart’s earnings and price movements. If we see a negative earnings report and a subsequent drop in price, we’ll provide updates and discuss potential strategies. 🤝
Walmart Surges on Strong Q2 Results, Raises OutlookWalmart (NYSE: NYSE:WMT ), the world’s largest retailer, has once again defied economic expectations, reporting robust second-quarter results that prompted the company to raise its sales and profit forecasts for the second time this year. As inflation begins to moderate and consumer spending remains unexpectedly resilient, Walmart’s performance provides critical insight into the current state of the U.S. economy.
Impressive Earnings Beat
Walmart reported quarterly earnings of 67 cents per share, surpassing analysts' expectations of 65 cents per share and marking a 10% year-over-year increase. The company's revenue rose by nearly 5% to $169.34 billion, also exceeding market estimates. This growth, while slightly below the prior quarter's average, demonstrates Walmart's ability to attract customers despite ongoing economic headwinds.
The increase in sales was driven by a 3.6% rise in average transactions during the second quarter, with online sales surging 22%. Walmart's U.S. stores saw particularly strong demand for fresh food, high-quality meats, and personal care products, underscoring the retailer’s ability to meet consumers' essential needs.
Resilient Consumer Spending
Walmart’s results are particularly notable given the broader economic context. Despite fears of a recession fueled by a deteriorating labor market, Walmart's performance suggests that U.S. consumers are still willing to spend, particularly on everyday essentials. The company's ability to draw higher-income customers, especially those earning over $100,000 annually, played a significant role in its success this quarter. These affluent shoppers boosted sales of home furniture, appliances, clothing, and toys, contributing to Walmart's market-share gains in these categories.
Walmart Plus, the company's $98-per-year subscription service, also saw a significant 16% increase in membership. This service, which offers benefits like unlimited free deliveries, curbside pickup, and discounts on fuel, has been instrumental in driving customer loyalty and increasing sales. The growth in Walmart Plus memberships contributed to the 22% rise in U.S. online sales, which was largely fueled by a 50% increase in store-fulfilled deliveries.
Strategic Growth and Market Position
Walmart’s strong performance this quarter is not just a reflection of consumer resilience but also a testament to the company’s strategic initiatives. The retailer has successfully expanded its higher-margin services, such as advertising, data monetization, and fulfillment services. These efforts are expected to enhance profitability over the next few years, allowing Walmart to grow its operating income faster than sales.
The company’s ability to adapt to changing consumer behavior has also been a key factor in its success. With inflationary pressures easing, Walmart has managed to maintain its position as a go-to destination for cost-conscious consumers. This has allowed the retailer to continue capturing market share from competitors, including higher-end retailers and discount-focused platforms.
Raised Outlook and Market Reaction
Given its strong second-quarter performance, Walmart (NYSE: NYSE:WMT ) has raised its full-year earnings guidance to between $2.35 and $2.43 per share, up from its previous forecast of $2.23 to $2.37. This revised outlook reflects the company’s confidence in its ability to navigate potential economic challenges while continuing to attract customers.
The market responded positively to Walmart's earnings report, with shares rising more than 7% in premarket trading. This surge in stock price indicates investor confidence in Walmart's strategy and its ability to perform well even in uncertain economic conditions.
Broader Implications
Walmart's results have broader implications for the retail industry and the U.S. economy as a whole. As one of the first major U.S. retailers to report quarterly results, Walmart’s performance is often seen as a bellwether for consumer sentiment. The company’s ability to deliver strong results despite economic uncertainty suggests that consumer spending may remain stable in the near term, providing some reassurance to investors and policymakers.
However, the retailer is not immune to the challenges facing the broader economy. Walmart executives have acknowledged the potential risks of a consumer slowdown, particularly if inflationary pressures resurface or if the labor market weakens further. Nevertheless, the company’s diverse product offerings, strategic growth initiatives, and strong customer base position it well to weather any potential downturns.
Conclusion
Walmart’s strong second-quarter performance and raised outlook underscore the company’s resilience in the face of economic challenges. With consumer spending remaining robust and strategic initiatives bearing fruit, Walmart is well-positioned to continue its growth trajectory. As the retailer navigates the evolving economic landscape, it remains a key player to watch in the retail sector and a crucial indicator of broader economic trends.
WMT Walmart Options Ahead of EarningsIf you haven`t bought WMT before the previous earnings:
Now analyzing the options chain and the chart patterns of WMT Walmart prior to the earnings report this week,
I would consider purchasing the 67usd strike price Puts with
an expiration date of 2024-8-16,
for a premium of approximately $1.46.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Walmart ($WMT) Set to Report Q2 Earnings Result on Aug 15, 2024For investors who prioritize dividends as a critical component of their wealth-building strategy, Walmart Inc. (NYSE: NYSE:WMT ) stands out as a company worth serious consideration. With the ex-dividend date fast approaching in just four days, there’s an immediate opportunity for those who act swiftly to secure their place in receiving Walmart’s next dividend payout. Understanding the timing and mechanics of this dividend payment is crucial for maximizing returns, especially for investors keen on reliable income from their stock holdings.
Dividend Snapshot
Walmart ( NYSE:WMT ) is set to pay out a dividend of $0.2075 per share on the 3rd of September, but to be eligible for this payout, you need to own the stock before the 16th of August. Last year, the retail giant paid out a total of $0.83 per share, resulting in a trailing yield of 1.2% based on the current share price of $67.95. While this yield might not appear overwhelmingly high, it’s the sustainability and growth potential of Walmart’s dividends that make it an attractive option for long-term investors.
The Health of Walmart’s Dividend
A company’s ability to maintain and grow its dividend payments over time is paramount for dividend-focused investors. Walmart has demonstrated a robust approach to dividend management, with a payout ratio of just 33% of its earnings. This conservative approach ensures that the company is not overextending itself in returning capital to shareholders, thus preserving funds for reinvestment and growth.
Moreover, Walmart’s dividend is comfortably covered by its free cash flow, with only 43% of cash flow being distributed as dividends. This balance between profit reinvestment and shareholder returns signals a healthy and sustainable dividend policy, giving investors confidence in the company’s future dividend payments.
Growth Prospects and Innovation
Walmart’s financial health is underscored by its impressive earnings growth. Over the past five years, the company’s earnings per share (EPS) have surged by an annual rate of 25%, a remarkable achievement in the retail sector. This rapid growth, coupled with a low payout ratio, suggests that Walmart has significant potential to increase its dividend payments in the future.
In addition to its strong financial performance, Walmart has been a frontrunner in embracing technology to drive growth. The retail sector is undergoing a transformation, with technology and artificial intelligence (AI) playing pivotal roles in enhancing operational efficiency and customer experience. Walmart’s strategic investments in technology, such as its online subscription service Walmart+, are positioning the company to gain market share and boost profitability.
The Impact of Tech and AI on Retail
The rise of tech and AI is not just reshaping the tech sector but also revolutionizing retail. Walmart has been at the forefront of this shift, integrating AI into various aspects of its operations. From improving the frontend shopping experience to optimizing backend processes, Walmart’s tech-driven approach is setting a new standard in retail. This focus on innovation is not only helping Walmart maintain its competitive edge but also attracting the attention of investors looking for growth opportunities in the retail sector.
Retail Sector Outlook 2024
The outlook for the retail sector in 2024 is promising, with a significant number of retailers expecting higher profitability within the next two years. The WTW Global Retail Survey for 2024 revealed that 48% of retailers are actively incorporating AI into their operations to deliver personalized shopping experiences. Despite concerns about cybersecurity risks, the drive towards AI adoption is evident, particularly among online and electronic retailers.
Walmart’s commitment to tech-enabled innovation aligns with broader industry trends, making it a strong contender in the evolving retail landscape. As the company continues to invest in technology and adapt to changing consumer demands, its prospects for sustained earnings growth and dividend increases look bright.
Technical Outlook
As of the present writing, Walmart stock ( NYSE:WMT ) has observed a 0.29% increase in premarket trading. The stock recently concluded with a Relative Strength Index (RSI) of 45, which presents a moderately positive outlook as trading commences on Monday. Investors are eagerly anticipating the forthcoming earnings reports scheduled for August 15, 2024.
The daily price chart reveals a bullish engulfing pattern, notably distancing itself from the one-month low. The accentuation of the bullish engulfing pattern necessitates Walmart ( NYSE:WMT ) stock to transition to the pivot retracement zone, a prospective move that may align with the imminent earnings outcomes.
Final Takeaway
Is Walmart a buy for dividend investors? The answer appears to be a resounding yes. With strong earnings growth, a conservative payout ratio, and a strategic focus on technology, Walmart is well-positioned to continue delivering value to its shareholders. The company’s dividends are not only sustainable but also have the potential to grow, making Walmart a compelling choice for investors seeking both income and growth.
As Walmart continues to innovate and capture market share, particularly through its tech and AI initiatives, it stands out as a dividend powerhouse in the retail sector. For those looking to secure a reliable income stream while benefiting from the company’s growth, Walmart’s stock is certainly worth a closer look.
$SPY 8/12 - 8/16- Massive panic sell off last week and a quick quick recovery BUT we are still overall red for the month
- If price makes higher highs above $534 lvls we most likely will keep pushing higher so we will look for calls
- IF price rejects and starts to make lower lows as well as retest previous demand zones then we should look for puts
- KEEP IN MIND there is PPI 8/13, CPI 8/14, and Retail sales + Unemployment 8/15
- Earnings for Retail Companies are next week as well so keep an eye on NYSE:HD , NYSE:WMT , NYSE:BABA for any major moves
$WMT 10D, $56 incoming, Tower Top BreakdownTower Top Breakdown in the works. Seems like whatever or whenever it happens, it will be close to next Friday. Remain Bearish unless new highs are established. Seemingly easy Trade here. MACD in same positioning as well as RSI. Seems like WMT doesn't get much volume in general. Not necessarily a bad thing. Options could pay well here.
WMT Walmart Options Ahead of EarningsIf you haven`t bought the dip on WMT:
Then analyzing the options chain and the chart patterns of WMT Walmart prior to the earnings report this week,
I would consider purchasing the 60usd strike price Calls with
an expiration date of 2024-5-24,
for a premium of approximately $1.73.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Walmart Inc Reports Profit Growth of Almost 10% in Q1 EarningsWalmart ( NYSE:WMT ) reported Q1 FY 2025 earnings, which were positive and largely beat analysts' expectations, with income up almost 10%. The company is betting on easing inflation to boost demand for essentials and bring a rebound in sales of discretionary products like apparel and electronics. Shares of the Bentonville, Arkansas-based company were up 6% in premarket trading, and if these gains hold, the stock will hit a record on Thursday.
The strong performance by Walmart ( NYSE:WMT ) could assuage some investors' fears about ebbing U.S. consumer spending. Americans have largely been able to weather higher prices, but a long bout of inflation has raised concerns that shoppers could become more constrained and a recovery in spending will be slower than previously expected.
Walmart ( NYSE:WMT ) reported total U.S. comparable sales up 3.9%, excluding fuel, for its first quarter ended April 30. Adjusted earnings per share came in at 60 cents, easily beating the 52-cent average forecast. Total revenue of $161.51 billion also topped estimates.
The retail bellwether now expects annual consolidated net sales to rise at the high end or slightly above its prior forecast of 3% to 4% growth. It also expects adjusted profit per share to be at the high end or slightly above its prior estimate of $2.23 and $2.37.