Trading Walmart After Fiscal Q3 Performance

November 29, 2023 00:27

Walmart is the largest retailer in the world with revenue exceeding $570 billion last year. The second largest retailer in the world is Amazon with revenues of more than $230 billion. This is why the performance of Walmart is often seen as a barometer of consumer and economic health. 

Learn more about Walmart's fiscal third-quarter performance and what the analysts are forecasting for the stock.

Stock: Walmart Inc
Symbol for Invest.MT5 Account: WMT
Date of Idea: 28 November 2023
Time Line: 1 - 6 months
Entry Level: $160.00
Target Level: $210.00
Position Size for Invest.MT5 Account: Max 5%
Risk: High
  • The Invest.MT5 account allows you to buy real stocks and shares from 15 of the largest stock exchanges in the world.

All trading is high risk and you can lose more than you risk on a trade. Never invest more than you can afford to lose, as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a demo account first to build your knowledge before investing. 

Walmart Fiscal Q3 2023 Performance

Here are some of the key highlights from the latest fiscal third-quarter earnings report from Walmart: 

  • Earnings per share of $1.53 vs $1.52 expected 
  • Revenue of $160.80 billion vs $159.72 billion expected 
  • Net income up to $453 million, compared to a $1.8 billion loss same time last year (due to opioid-related legal charge) 
  • Same-store sales up 4.9% for Walmart U.S. 
  • Customer transactions up 3.4% 
  • Average ticket growth up 1.5% 
  • E-commerce sales up 24% in the U.S. and 15% across the world 

On the face of it, Walmart posted some impressive numbers with growth in most sectors and beating analysts' forecasts. This was during a time of high inflation where many retailers have struggled. The day before the earnings release the stock had reached an all-time high of nearly $170. 

However, by the end of the earnings call the stock had sunk more than 8% lower to close at $156.04.  While most technical analysts may put this down to some profit-taking at record highs, it was Walmart's outlook for the holiday season that concerned investors.  

Executives at the company stated that sales have been "uneven" over the last two months due to higher interest rates and falling household savings. More than half of the company's sales comprised of non-discretionary items such as daily necessities like food and clothing.  

The company did see a small uptick in home goods and apparel but Walmart's Chief Financial Officer highlighted that most shoppers are waiting for promotional events such as the Black Friday sale. This has led Walmart to be more cautious about the consumer than three months ago, concerning investors about the company's prospects over the holiday season. 

Therefore, the upcoming holidays will be a big test for Walmart. It is the largest grocer in the U.S. and investors will be hoping that can help to drive sales and recover some of the decline seen in its stock price. If not, then further downside could be likely.

Walmart Stock Forecast - What do the Analysts Say?

According to analysts polled by TipRanks for a Walmart stock forecast in the past 3 months, there are currently 25 buy, 5 hold and 0 sell ratings on the stock. The highest price level for a Walmart stock forecast is $210.00 with the lowest price target at $163.00. 

The average price target for a Walmart stock forecast is $180.79.

Source: TipRanks, 28 November 2023


An Example Trading Idea for the Walmart Stock Price

An example trading idea for the Walmart share price could be as follows:  

  • Buy the stock on a recovery to the gap in the stock price developed during the sell-off at $160.00. 
  • Target just below the highest analyst price target of $210.00. 
  • Keep your risk small at a maximum of 5% of your total account.   
  • Time Line = 1 – 6 months  
  • If you buy 10 Walmart shares:  
    • If target is reached = $500.00 potential profit [($210.00 - $160.00) * 10 shares].

Remember that markets go up and down and it is unlikely the share price will move up in a straight line. In fact, it may even go much further down before it rises, especially considering the steep sell-off after the recent earnings call.

Be sure to exercise good risk management and always know how much you could potentially lose on a trade and the risks involved, as well as the costs.

With the Admirals Invest.MT5 account you can buy and sell US stocks with a commission from $0.02 per share. This means buying 10 shares in Walmart stock would result in a commission of $0.20 ($0.02 * 10 shares) for executing a per-side transaction.

There is a low minimum transaction fee of $1. So, the example trading idea above would result in a commission of just $1 overall! 

How to Buy Walmart Stock in 4 Steps  

With Admirals, you can buy shares in companies like Walmart with a low commission of just $0.02 per share and a low minimum commission of just $1 on US stocks. 

  1. Open an account with Admirals to access the dashboard.   
  2. Click on Trade on one of your live or demo accounts to open the web platform.   
  3. Search for your stock in the search window at the top right to view the live price chart. 
  4. Click Create New Order from the bottom of the screen to open the trading ticket. 
Source: Admirals MetaTrader 5. Walmart. Monthly. Date: Jan 2017 to Nov 2023, captured on 28 Nov 2023. Past performance is not a reliable indicator of future results or future performance.


Click on the banner below to trade Walmart stock today! ▼▼▼ 

Do You See the Walmart Stock Price Moving Differently?   

Remember that all analytics and trading ideas are based on the personal view and experience of the author.

If you believe there is a higher chance Walmart share price will move lower, then you can also trade short from a CFD (Contracts for Difference) trading account which Admirals also provide.

The Trade.MT5 and Trade.MT4 account allows you to speculate on the price direction of stocks and shares using CFDs.

This means you can trade long and short to potentially profit from rising and falling stock prices.


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Jitanchandra Solanki
Jitanchandra Solanki Financial Markets Author, Admirals London

Jitanchandra is a financial markets author with more than 15 years experience trading currencies, indices and US equities. He is an accredited Market Technician with a BA Hons degree.