Benzinga - by Zaheer Anwari, Benzinga Contributor.
- Walmart has recently decided to reduce the starting pay for new employees.
- Despite the pay cut, Walmart's stock price has been on a remarkable rise, reaching new record highs.
- Since its bullish trend beginning in November 2015, Walmart's stock has surged by 190%.
From mid-July, the company has opted to reduce the starting pay for newly hired employees assigned to preparing online orders and restocking store shelves.
Although this decision may raise some eyebrows, it is worth noting the intriguing divergence between Walmart's stock price and the pay cut. Instead of following suit, the stock price has been soaring to new record highs, defying expectations.
Walmart's stock performance over the years paints a bullish picture. Since November 2015, the stock has exhibited an impressive upward trend.
Starting from a low of $56 at the start of the current trend, it has soared by a remarkable 190%.
By April 2022, the stock price reached a critical milestone, peaking at $160. However, it couldn't sustain this momentum and eventually retreated to $117.
This retrospective analysis showcases the volatility and fluctuations in Walmart's stock, highlighting the dynamic nature of the market.
However, history has proven that Walmart's stock is incredibly resilient. After experiencing a dip, the stock successfully rebounded, and by July 2023, it had reached the $160 mark once again.
But this time, it didn't just touch the ceiling, it shattered it the following month, setting new record highs in its wake.
As we entered September, the bullish momentum continued its relentless surge. The stock soared to its peak at $165, representing a year-to-date increase of 15%.
Nevertheless, experienced investors understand that what goes up must eventually come down, or at the very least, correct itself.
Considering Walmart's stock history, a correction may be looming on the horizon. Should this occur, there is a possibility that the stock price could retract to the $160 mark.
This particular figure holds significance as it now serves as a support level below the current price, closely aligned with the daily 20 simple moving average.
It is important to acknowledge that Walmart's stock trajectory has not always been a seamless upward climb. There have been corrections and periods of consolidation along the way.
One thing remains steadfast: its long-term upward trend. For those contemplating an investment in Walmart, it is evident that although the journey may have its ups and downs, exercising patience may very well unlock substantial rewards.
After the closing bell on Friday, September 15, the stock closed at $164.64, trading down by 0.37%.
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