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Thursday, September 21, 2023

Walmart Inc. (NYSE:WMT) Recent Earnings Shows Major Concern

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Walmart Inc. (WMT) shares are trading at lower $149.30 and the avg recommendation for the stock is Strong Buy, while the current analyst price target stands at $161.44.

To add more color to this target, the company’s high over the last year is $153.66 and the low is $102.00. Over the last 52 weeks, WMT is up 25.79% while the S&P 500 is up 17.73%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, WMT reported a profit of $34.37 billion. Walmart Inc. also saw revenues increase to $134.71 billion. In addition, WMT has free cash flow of $16.44 billion as of 10-2020. The company’s EBITDA came in at $8.55 billion which compares well with its peers.

WMT booked profit margins of 2.70%, its Return on Equity (ROE) is 20.70%, and its Return on Assets is 6.40%. All told, it is clear that, WMT needs to be on your watchlist.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. WMT has a short ratio of 1.95 and outstanding shares of 2.83B.

Company Outlook

WMT has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 6.65 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 6.93. Walmart Inc. WMT also noted assets of $250.86 billion at the end of the last quarter. Investors should also keep an eye on sector updates as WMT has historically followed its peers on positive news.

All told, Walmart Inc. WMT has strung together solid data and demonstrated underlying fundamentals. At its current valuation, WMT represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Walmart Inc. WMT is now commanding a market cap of 423.72B and a float of 1.39B. WMT is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of WMT stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in WMT, either long or short, and we have not been compensated for this article.

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