On Tuesday Feb 19 before markets open, Walmart Stock (WMT) reports its fourth quarter earnings. These will include the December Christmas sales. Analysts are all over the map when it comes to predicting what earnings will look like.
The consensus is for Walmart to report $1.33 for the final quarter. That means earnings would match but not beat last year for the same quarter.
Revenue is expected to come in at $138.7 billion, up from last years $136.3 billion for the same quarter in 2018.
Analysts Stock Price Outlook
Over the last 30 days, the lowest close was $93.86 on February 1st (2019) while over the last 90 days, the lowest close was $85.82 on December 24th (2018). On Friday Feb 15, the stock closed at $99.99, up 1.49% on the day and up $14.17 since the Dec 24th low for a gain of 16.5%.
68% of analysts are of the opinion earnings will be lower than estimated and the stock will fall, while the remainder believe Walmart Stock (WMT) will move as high as $111 over the next 30 days. This would be a new high for the stock.
Walmart Stock (WMT) Chart
Looking at the past 90 days you can easily see the low of Dec 24 and the subsequent rally back. On Friday the stock broke through the prior two intraday highs closing basically at the $100 valuation ahead of earnings.
The stock recovered above the 200 day moving average Dec 31 and retested the 200 day on Feb 1 and Feb 4. Both times buyers stepped in and the stock failed to fall lower.
There is one cautionary down signal which is still in play. On Jan 29 the 50 day simple moving average (SMA) fell below the 100 day exponential moving average (EMA) and is continuing to slip lower. This cautionary signal is warning that the stock may fall lower even as the 100 day moving average tries to push higher. If earnings miss on Tuesday, a lot of analysts believe the stock will quickly retest the 200 day moving average within a few days.
Walmart has to prove to investors that it can compete with the other giant retailer, Amazon.com and the key will be in groceries which comprises about a quarter of Walmart revenue and earnings. If those numbers disappoint, watch for the stock to weaken.
I think Tuesday will present investors with a number of trade ideas. Here are some of the trade ideas I will be watching for and hopefully entering on Tuesday for what I think will be an excellent opportunity for profits.
The rest of this trade ideas article is for FullyInformed Members..
Walmart Stock (WMT) – Trade Ideas For After Earnings on Feb 19 2019
Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations.