WALMART STABLE ABOVE 100 AS EPS BEATS ESTIMATES

Walmart is currently trading at 100.64-lower by 0.93% as compared to the previous closing. In Pre-market trading on Thursday, the stock was traded as high as 1.57% up on yesterday’s close. The stock erased some of its earlier gains after the opening bell.

Walmart reported better-than-expected quarterly U.S. comparable sales before the market opened today. The company also raised its earnings outlook for the year as a strong economy boosted customer store visits and more grocery offerings helped e-commerce purchases.

Sales at U.S. stores open at least a year rose 3.4 % in the third quarter, excluding fuel price fluctuations, higher than market expectations of a 2.87% increase. Walmart has recorded over four straight years of U.S. growth, unmatched by any other retailer.

The retailer’s quarterly total revenue increased 2.4% to $126.1 billion, excluding currency changes, beating the consensus estimates of $125.56 billion. Walmart reported adjusted EPS of $1.08, topping market expectations of $1.01.

The company raised its adjusted earnings outlook for the fiscal year 2019 to $4.75 to $4.85 per share from $4.65 to $4.80.  Walmart also expects comparable sales, excluding fuel, to grow “at least” 3%, a change from “about” 3% earlier in fiscal 2019.

On the technical front, the RSI is currently at 53.6% and suggests that the market can move in the upward direction. The current price is above the MA50. The current price is above the middle line of the Bollinger Bands and is heading upwards.

Overall Bias is Mixed/Positive and short-term trades can be initiated with tight Stop Loss and Profit targets.

 

TRADE SUGGESTION-LIMIT BUY AT 100.40 TAKE PROFIT AT 101.60  STOP LOSS AT 99.80

 

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