Walmart needs no introduction – it is one of the largest companies in the world with retail and wholesale operations. It employs over 2 million people and continues to outperform the market on a regular basis.
The COVID-19 pandemic did not hit Walmart operations as it also runs e-commerce websites for the delivery of its products. As such, the dip seen in the global stock market in March 2020 does not look so aggressive on the Walmart charts.
With a market capitalization of over $400 billion, Walmart’s stock price is flat on the year and is up over 119% in the last five years. The market participants likely wait for the next set of financial results that will complete the 2021 fiscal year.
When Does Walmart Report Q4 Earnings?
Walmart is scheduled to report its 2020 fourth-quarter financial results next Thursday, February 18th, 2021.
Market Expectations from Walmart’s Earnings Statement?
It is worth noting here that the current earnings refer to the fiscal year 2021 that ended in January this year. The market expects from Walmart’s Q4 2021 earnings strong results – EPS of $5.59, 13.46% YoY growth, and revenues growing by 6.19% YoY, rising over $550 billion.
Walmart Shares: Technical Analysis
The technical picture on Walmart looks compellingly bullish. The market rose from the 2020 lows and stopped around $152. From that moment on, a consolidation began with the price keep trying against the horizontal area.
Technical traders call such a pattern an ascending triangle. Effectively, the market builds energy to break and close about the horizontal resistance, in this case at $152. This is a key concept moving forward – the market must break above the resistance and close on a daily basis above $152. When this happens, it means that the consolidation ended.
An ascending triangle’s measured move equals the longest of its segments projected from the horizontal resistance. If Walmart beats on next week’s Q4 2021 earnings, it might be just enough for the market to push over the $152 mark.
What Is the Outlook for the Walmart Share Price?
Walmart was recently cut to “Sell” at R5 Capital on the grounds of long-term fundamental challenges. Also, according to news from the Wall Street Journal yesterday, TikTok’s sale to Walmart and Oracle was shelved.