Walmart’s controversial financial image

NYSE:WMT   Walmart Inc.

Shares in Walmart, Inc. (symbol ‘WMT’) managed to recover from the losses incurred in the first quarter of the year and is currently in profit area testing the latest high of November 2022. The company is expected to report its earnings for the fiscal quarter ending April 2023 on Thursday 18th of May, before market open. The consensus EPS is $1,30 compared to the result for the same quarter last year of $1,30.

‘ The financials of the company are flashing “caution” signals all over the place. The net profit of the world’s largest retailer dropped by 15% year over year as of 31/01/2023 while the assets to liabilities ratio dropped also from 1.51 to 1.46 indicating the liabilities are growing while assets are declining in value on the financial statements. Dividend yield is at the low area of 1.49% while the payout ratio is at 53% which is not bad nor good news for investors. ’ said Antreas Themistokleous, an analyst at Exness.

On the technical side the price is trading in an aggressive bullish momentum after the first quarter and is currently testing the upper band of the Bollinger bands which is acting as a resistance on the price at the time of this report.

While the 50 day moving average is still above the 100 day moving average and therefore validating the bullish trend the $150 area is a strong technical support level since it consists of the psychological support of the round number, the 20 day moving average and is also just below the 78.6% of the monthly Fibonacci retracement level.

The Stochastic oscillator is in the extreme overbought area possibly indicating that a minor correction might happen before we see a continuation of the upward moving trend.


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