2016-08-19 16:51:32

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

Financial performance

Index –DJIA, S&P 500; Beta – 0.22;
Capitalization - 205.31 В Assets profitability - 7.50%;
Revenue - 15.09 B; Average volume – 11.98 М;
P/E - 15.66; ATR – 1.68.

Analytical review:

  • The Company has the biggest capitalization in the retail sector among the issuers listed on the US stock market.
  • The retailer provided an upbeat report on the second quarter of the 2017 fiscal year yesterday and the growth of the company's stock therefore exceeded 1.8%. The quotes are expected to rise further.
  • According to the press release, Wal-Mart's revenue increased to 120.90 billion USD against analysts' forecast of 120.10 billion USD. The company announced that its net profit had grown 8.3% to 3.77 billion USD as compared with a year-ago value of 3.48 billion USD.
  • The Company has improved a forecast for the fiscal year 2017. Wal-Mart's management expects profits at $4.15-$4.35 per share against last year's expectation of $4.10-$4.30 per share;
  • The company continues to develop and diversify its business. Wal-Mart has announced recently about purchasing the Jet.com online retailer for 3.3 billion USD. This trade will allow the company to boost its competitiveness in the sector of online sales.
  • Large investment companies (Nomura and Jefferies) upgraded the ranking of Wal-Mart Stores Inc. in mid-June and updated the target cost of the company's stock to 81-82 USD.

Summary:

  • The report has consolidated investors' confidence in the company's management. Despite the pressure of dollar, Wal-Mart’s results improved and exceeded market expectations. The company's growth potential is quite significant. Large investment companies forecast a positive trend for the company.
  • Thus, we expect that the company's quotes will be rising in the nearest future.

Trading tips for Wal-Mart Stores Inc.'s CFDs

Key levels:
Support levels: 73.35 USD, 72.70 USD
Resistance levels: 74.30 USD, 74.90 USD

Medium-term trading, H1
The issuer is currently trading near a resistance level of 74.30 USD. Once this level is broken and tested and relevant confirming signals appear (Price Action patterns, for example), we recommend searching for market entry points to open long positions. Risk per trade: no more than 2% of equity. Stop order shall be placed a bit below the signal line. We recommend that prospective profits should be fixed partly at the levels of 75.50 USD, 77.00 USD and 78.50 USD, with Trailing Stop applied.

Medium-term trading, H1
Medium-term trading, H1


Short-term trading, M15
Yesterday the issuer gapped up on the positive corporate report. If the support levels of 73.95/73.55 USD stabilize, we advise you to search for market entry points to open long positions. Risk per trade: no more than 2% of equity. Stop order shall be placed a bit below the signal line. We recommend that prospective profits should be fixed partly at the levels of 74.85 USD, 75.20 USD and 75.70 USD, with Trailing Stop applied.

Short-term trading, M15
Short-term trading, M15