Forex Analysis & Reviews: 08.03.2021 - Stock analysis for Walmart...

08.03.2021 01:35 PM

Stock analysis for Walmart Inc

WALMART INC. (WMT), formerly known as Wal-Mart Stores, Inc., operates retail, wholesale and other trade sectors in a variety of formats around the world. It offers a wide range of products and services at everyday low prices (EDLP).

To date, Walmart has three segments: Walmart US, Walmart International and Sam's Club. Walmart US includes not only retail merchandise operating under Walmart brands, but also digital retailing. Meanwhile, Walmart International consists of operations outside of the United States, including various retail sites. As for the Sam's Club, it includes club memberships in the United States. All in all, the company operates approximately 11,600 stores in 28 countries and e-commerce websites in 11 countries.

This year, Walmart's enterprise value (EV) has reached a higher level than its capitalization, hitting P / E - 29.6x. But in the next two years, the value should drop to below average for the US market. Nonetheless, EV / EBITDA is 12.5x, since the company pays 1.54% dividends to shareholders per annum. At the same time, for every dollar invested, the investor receives $ 0.22 in the company's assets. The margin generated by the company is also stable and is at a value of about 4%. Sales and profits, meanwhile, are stable and constant, but with growth potential.

In any case, Walmart's financial position is stable. Its debt-to-earnings ratio is 0.91x, with a free cash flow of $ 25.8 billion.

It also has very strong fundamentals, which builds solid foundations for a short-term investment strategy.

And to date, its stock is approaching $ 129.4, which suggests that this is a good time to invest in the company.

But over the past years, Walmart is one of the most undervalued companies. Stock analysts always had to revise their forecasts upward, generally recommending an increase in the share of the portfolio.

The average target set by analysts is above $ 160, while on the weekly time frame, it is above $ 129.4.

But there's an upcoming weakness for the company. Sales are expected to be sluggish in the coming years, possibly resulting in the company not making enough profit, which is worrying.

Nevertheless, the growth targets for Walmart are $ 150, $ 160 and $ 170. And while the readings in the weekly time frame do not yet provide an opportunity to purchase shares, the value could still reach $ 120, around which a reversal pattern should form. Therefore, long-term investors should buy from $ 120 - $ 130, with goals of up to 5% of liquid capital. Leveraged traders, meanwhile, should not exceed a reasonable loss limit above 1% per trade. And of course, liquidate the position when WMT drops below $ 90. Good luck!

You have already liked this post today

*A análise de mercado aqui postada destina-se a aumentar o seu conhecimento, mas não dar instruções para fazer uma negociação.

Se você tiver alguma dúvida sobre conteúdo, por favor, entre em contato com editorial-board@instaforex.com

Stock Markets

Daniel Adler,
Especialista em análise na InstaForex
© 2007-2025

Mais artigos deste autor

Inscrição do e-mail

EURUSD

Euro vs US Dollar

Selecionar intervalo de tempo

min

hora

horas

dia

Comece a negociar

Ganhe com as variações das taxas das criptomoedas com a InstaForex.

Baixe o MetaTrader 4 e abra a sua primeira operação.

Recommended Stories

O mercado dos EUA cai com as tarifas de Trump, que corroem a confiança nas perspectivas econômicas

Mercado de ações em 27 de março: S&P 500 e NASDAQ despencaram após as últimas tarifas de Trump

O mercado acionário dos EUA está apresentando um crescimento modesto

Atualização do mercado de ações para 26 de março: S&P 500 e NASDAQ continuam a se recuperar gradualmente

O mercado de ações dos EUA ganha novo impulso de alta. Os investidores percebem o sinal de que a correção para baixo acabou

Mercado acionário dos EUA em 24 de março: S&P 500 e Nasdaq ganham força com as notícias sobre tarifas

O mercado dos EUA tenta se recuperar. Perspectivas de um ataque dos EUA ao Irã sustentam os preços do petróleo

S&P 500: Da Euforia à Queda

Mercado dos EUA em fase de consolidação. Trump busca apoio do Senado para ataques ao Irã

Fed revigora o mercado de ações

Principais análises