Benzinga - by Zaheer Anwari, Benzinga Contributor.
- Walmart's Q3 earnings report is highly anticipated by the market, with expectations set for an estimated $1.41 per share.
- The company has a history of exceeding earnings estimates, as seen in Q2 when actual earnings of $1.84 surpassed the forecasted $1.70.
- Walmart's stock recently achieved a new record high of $166.61, indicating a strong year-to-date performance with a 16% increase.
Analysts have set the bar at an estimated $1.41, but this retail giant has a track record of surpassing expectations.
In Q2, for example, the forecasted $1.70 was outshined by impressive actual earnings of $1.84. This left investors craving more of the same bullish performance from Walmart.
The anticipation surrounding Walmart's stock trajectory is well-deserved. Tuesday's trading session saw the stock reach a new record high of $166.61, surpassing the previous record set in September 2023.
This milestone serves as a testament to the impressive year-to-date growth of 16%, with November alone contributing a 1.43% increase to the stock's price.
The journey to these heights, however, has not been a straight climb. After reaching the September high, the stock experienced an 8% retraction, dipping to $151 by October 6th.
This point flirted dangerously close to the daily 200 simple moving average, a key technical indicator often monitored by investors for long-term trend direction.
Despite this, the stock showed resilience by bouncing back from the support level with a 9% recovery.
It is worth noting, however, that Walmart's stock has a history of performance that could be likened to a roller coaster ride.
It has experienced sharp declines and extended periods of sideways movement, which suggest that the market is consolidating its gains before the next upward move.
Despite reaching an all-time high, the most recent trading bar closed with an indecision candle. This candlestick, often seen as a signal of uncertainty in the market, can precede a change in direction.
Walmart's stock could experience a temporary pullback in the near term. If the stock's price were to retreat, investors would likely have their sights set on the $160 level, which was last year's high.
This particular price point could potentially act as a springboard for the stock, especially if the upcoming earnings report injects a fresh wave of vitality into Walmart's market valuation, thus propelling it to resume its upward trajectory.
After the closing bell on Tuesday, November 7, the stock closed at $165.65 trading up by 0.45%.
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