We use cookies to optimise our site and allow us and 3rd parties to tailor ads you see on sites. By using this site you agree to our cookie policy.


Walmart stock slipped from a year high this week – Time to sell?

The Walmart stock price has rallied

Walmart (NYSE: WMT) stock slipped back from a year high this week as investors wonder whether coronavirus cases have peaked, opening the door for shopping habits to return to normal in the near future. The largest US grocer is among the biggest beneficiaries of health emergency as people stockpile staples, the firm’s sales grew 20% in March and up 30% online over the last eight weeks.

Walmart stock price soared close to 6% in March amid robust sales and traffic growth, with the stock hitting a 52-week high of $129 in trading on Monday. Sales are likely to grow again in April because the pandemic is expected to peak in the US this month, more than 1,800 people lost their lives in the last 24 hours in the US – bringing the total death toll to nearly 13,000. The confirmed cases in America  reached 398,000 on Tuesday, while cases have exceeded 1.4 million globally.

Walmart stock slipped from...

Credit Suisse increased Walmart stock ratings to outperform. “We see this unfortunate period accelerating structural changes in consumer shopping, possibly by 5-plus years. This change should be sticky, and favor Walmart, as it’s invested in its infrastructure, technology, and people, to evolve its model,” Credit Suisse analyst Seth Sigman said.

Credit Suisse anticipates the fiscal year 2021 earnings per share to stand around $5.20 on comparable sales growth in the range of 3.8%, up from Walmart’s estimates for comparable sales growth of 3% and EPS of $5 for 2021. Walmart had generated year over year comparable sales growth of 1.9% in the latest quarter.

Some market players believe the sales growth is not sustainable over the long-term as consumer’s purchasing power is likely to decline substantially in the coming months amid the robust growth in the unemployment rate, which could hurt its sales and stock price momentum. The unemployment claims jumped by 10 million over the last two weeks, according to the latest Labor Department data.

All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.

Based in Saudi Arabia, Siraj has a strong understanding of and passion for accounting and finance. He has worked for international clients for many years on several projects related to the stock market, equity research and other business, accounting and finance related projects. Siraj is a published financial analyst on the world's leading websites including SeekingAlpha, TheStreet, MSN, and others.

HTML Snippets Powered By : XYZScripts.com