Walmart Earnings = All-Time High?

Two of the biggest retailers, Walmart Inc. (WMT) and Target Corporation (TGT) are slated to report their quarterly earnings next week. We’ll focus on WMT for the Chart of the Week.

The giant retailer’s shares are trending higher in a very tight range, as you will see on the chart below. WMT ascension saw its angle of attack reduced at the beginning of April. It could be a sign that Wall Street is cautious as the stock approaches its 52-week high of $154.54.

Earnings are expected to be $1.30 per share with sales of $148.52 billion. (1) Citi believes “Walmart is poised to beat earnings estimates and raise guidance when it releases first-quarter results.” (2)

If Citi made the correct call, then Walmart shares will likely go beyond its 52-week high and move into open space and set an all-time high. Stocks can make very powerful moves when setting all-time highs because nobody owns stock at a higher price and is waiting to sell. Instead, sellers tend to be hesitant to pull the trigger early and miss out on upside. Now, if Citi gets it all wrong, then WMT would likely settle to its 50-week moving average of $145.43.

Trading earnings is highly risky and only for the most aggressive investors who can afford to lose money in short timeframes.

Rich Meyers


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