Walmart Inc. (WMT) Solid Choice From Multiple Angles?

Walmart Inc. (NYSE:WMT) is rated as Outperform by analysts at Telsey Advisory Group. The firm was pushed by the stock performance to change their PT view from $113 to $115 on February 20. Analysts at Buckingham Research, started covering the stock on February 08 with a Neutral rating. The stock won favor of Morgan Stanley analysts who expressed their confidence in it using an upgrade from Equal-Weight to Overweight on January 23. Daiwa Securities analysts came out with bearish views on November 20 when the call was made. They think the stock is now Neutral compared to to their prior call for Outperform.

WMT stock dropped -0.82% in recent trade and currently has a stock-market value of $284.95B. The shares finished at $98.22, after trading as low as $97.59 earlier in the session. It hit an intraday high Thursday at $98.43. Trading activity significantly weakened as the volume at ready counter decreased to 4,906,445 shares versus 8,398,695 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 7,780,064 shares. The stock is now 20.1% above against its bear-market low of $81.78 on May 24, 2018. It has retreated -8.13% since it’s 52-week high of $106.21 reached in November. Now the market price is up 11.23% on the year and up 5.44% YTD.

Wall Street’s most bullish Walmart Inc. (NYSE:WMT) analysts are predicting the share price to blow past $120 per share during the next 12 months. The current median share price forecast by them is $110, suggesting that the stock could increase 11.99% in that time frame. The average price target of $109.52 calls for a nearly 11.5% increase in the stock price.

Walmart Inc. (WMT)’s 50 day simple moving average (SMA 50) price is $97.02 and its 200-day simple moving average (SMA 200) price is $93.59. The company’s stock currently has a total float of 1.37B shares. Its weekly volatility is hovering around 0.96% and felt 1.38% volatility in price over a month. On the upside, the share price will test short term resistance at around $98.57. On a downside, the stock is likely to find some support, which begins at $97.73. The failure to get near-term support could push it to $97.24.

When looking at valuations, Walmart Inc. (WMT) has a pricey P/E of 43.61x as compared to industry average of 37.02x. Moreover, it trades for 19.59 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 3.99x price/book and 0.55x price/sales. Compared to others, Walmart Inc. is in a different league with regards to profitability, having net margins of 1%. To put some perspective around this, the industry’s average net margin is 3.11%. WMT’s ROE is 7%, which is also considerably worse than the industry’s ROE of 10.07%. It’s also not liquid in the near term, with a current ratio of 0.8. The stock has a debt/capital of 0.8.

Shares of WMT have dropped -1% since the company’s most recent earnings report. Over the past 12 fiscal quarters, Walmart Inc. (NYSE:WMT) has topped consensus earnings estimates in 11 quarters (91%), missed earnings in 1 quarters (8%), whereas at 0 occasion EPS met analyst expectations. WMT last reported earnings that exceeded expectations. The company raked in $1.41 per share, -75.31% change on the same period last year. That was better than consensus for $1.33. Revenue for the recent quarter stood at $138.79 billion, up 2% on last year and below the $138.65 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $121.97 billion to $126.43 billion, which should be compared with $123.76 billion generated last year.