- Walmart (WMT) demonstrates strong technical momentum and is trading less than 5% below its 52-week high.
- WMT is trading above key moving averages and has a Trend Seeker “Buy” signal.
- Shares are up nearly 37% over the past year.
- Fundamentals remain solid with steady revenue and earnings growth projections, and a 0.9% dividend yield support the investment case.
Today’s Featured Stock
Valued at $798 billion, Walmart (WMT) operates a global network of retail stores as well as an e-commerce channel. It has three reportable segments: Walmart U.S., Walmart International, and Sam’s Club.
What I’m Watching
I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. WMT checks those boxes. Since the Trend Seeker signaled a buy on July 29, the stock gained 1.7%.
WMT Price vs. Daily Moving Averages:
Barchart Technical Indicators for Walmart
Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.
- Walmart has a Weighted Alpha of +28.78.
- WMT has an 100% “Buy” opinion from Barchart.
- The stock gained 36.59% over the past year.
- WMT has its Trend Seeker “Buy” signal intact.
- Walmart is trading above its 20-, 50-, and 100-day moving averages.
- The stock made 12 new highs and gained 5.55% in the last month.
- Relative Strength Index (RSI) is at 54.36%.
- There’s a technical support level around $99.44.
Don’t Forget the Fundamentals
- $798 billion market capitalization.
- 40.02x trailing price-earnings ratio.
- 0.94% dividend yield.
- Revenue is projected to grow 3.61% this year and another 5.14% next year.
- Earnings are estimated to increase 5.11% this year and an additional 11.74% next year.
Analyst and Investor Sentiment on Walmart
I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping a stock, it’s hard to make money swimming against the tide.
It looks like Wall Street analysts are bullish on WMT, but Morningstar is cautious.
- The Wall Street analysts tracked by Barchart have issued 30 “Strong Buy,” 6 “Moderate Buy,” and 1 “Hold” opinion on the stock.
- Their price targets are between $96-$130.
- Value Line gives the stock its above-average rating with a price target of $123.
- CFRA’s MarketScope Advisor gives the stock a “4-Star Buy” rating and a price target of $118.
- Morningstar thinks the stock is overvalued by 56% with a fair value of $64.
- 11,995 individual investors on Motley Fool think the stock will beat the market while 2,236 think it won’t.
- 337,240 investors monitor the stock on Seeking Alpha, which rates the stock a “Hold.”
The Bottom Line on Walmart
Walmart currently has momentum and a 100% “Buy” opinion.
However, I caution that WMT is volatile and even speculative in the current environment, which means investors should use strict risk management and stop-loss strategies.
Today’s Chart of the Day was written by Jim Van Meerten. Read previous editions of the daily newsletter here.
Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.
