2016-07-01 15:16:56

Wal-Mart Stores Inc., #WMT [NYSE]
Services, Retail, USA

Financial performance of the company:
Index – DJIA, S&P 500; Beta – 0.22;
Capitalization – 205.31 В; Return on asset- 7.50%;
Income - 15.09 B; Average volume – 11.98 М;
P/E - 15.66; ATR – 1.68

Analytical review:

  • The company ranks the fifth on capitalization in the sector of “Retail” among the issuers traded in the American stock market;
  • This issuer has demonstrated positive dynamics. The price of company’s stocks rose by 3.5%. It is expected that the rise will continue;
  • Company’s report for Q1 of the fiscal year 2017, company’s revenue has grown by 0.9% up to 115.9 billion USD. Net profit of the company was at the level of $0.98 per share, which exceeded the forecast of $0.88 per share;
  • The company continues to invest large funds to the development of the electronic payment systems. In the near future the company is going to launch payment system “Walmart Pay” in 14 states. The system will operate in more than 600 shops;
  • Multipliers show that the company’s management has been very efficient. Company’s return on equity and return on investment is the highest among the closest competitors in the industry. Return on investment is 11.84%. Return on equity exceeds 19%. Average value in the industry is 8.31% and 10.43% respectively;
  • Wal-Mart Stores is attractive for implementing long-term investment strategies. Dividend yield of the company (2.74%) is high higher compared with the other companies in the industry (1.25%).

Summary:

  • Company’s last report has increased investors’ confidence to the company. Despite pressure from the strong USD, company’s results exceeded market expectations. Multiplier’s analysis and successful implementation of the company’s investment projects shows that the company has strong growth potential.
  • It is likely that in the near future company’s quotes will go up.

Trading tips for CFD of Wal-Mart Stores Inc.

Key levels:
Support levels: 72.65 USD and 71.50 USD
Resistance level: 73.65 USD

Medium-term trading, Н1
At the moment the issuer has broken down and consolidated above the local resistance level of 72.65 USD. If the price maintains the mirrored support level of 72.65 USD and in case of the respective confirmation (such as pattern Price Action), it is advisable to open long positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 74.00 USD, 75.50 USD and 77.00 USD with the use of trailing stop.

Medium-term trading, Н1
Medium-term trading, Н1

Short-term trading, М15
Currently, the issuer is traded between the local support and resistance levels of 72.45/73.15 USD. It is recommended to enter the market after breakdown and testing of these levels. Positions can be opened near the signal line and the nearest support/resistance levels. Risk per trade is not more than 3% of the capital. Stop order can be placed slightly above/below the signal line. Take profit can be placed in parts of 50%, 30% and 20% with the use of trailing stop.

Short-term trading, М15
Short-term trading, М15