Wal-Mart Stores Inc., #WMT [NYSE]
Retail services, 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;
  • In mid-May, the Company provided a report on the 1st quarter of the fiscal year 2017. According to the press release, the company's revenue increased by 0.9% to 115.9 billion USD. The retailer announced that EPS dropped from $1.03 to $0.98 against the background of increasing investments in e-commerce development. Nevertheless, Wal-Mart Stores' net profit exceeded market expectations of $0.88 per share;
  • The company announced an updated forecast for the second quarter of the fiscal year 2017. Wal-Mart expects a profit of $0.95-$1.08 per share against market expectations of $0.98 per share;
  • The multipliers also indicate the managers' efficient work. The Company's Return on equity and investments is the highest in the industry. Return on investments amounts to 11.84% and Return on equity – to over 19%, while the average values for this industry equal 8.31% and 10.43%, respectively;
  • Another driver pointing at eventual increase in the company's cost is P/E Ratio. Wal-Mart P/E Ratio (15.66) is lower than the average P/E in the industry (25.83) and in the sector (24.90), which may suggest a further growth of the company's quotes.


  • The Company's latest report has consolidated investors' confidence in the corporation's management. Despite the pressure of the dollar, the company's results exceeded market expectations. The analysis of multipliers and the updated forecast point persistently at the company's capitalization growth potential.
  • 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: 70.00 USD, 68.30 USD
Resistance levels: 71.25 USD, 72.50 USD

Medium-term trading, H1
The issuer has broken a local resistance level of 70.00 USD and steadied above. Once the demand zone of 70.00-70.55 USD steadies and relevant confirming signals appear (PriceAction 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 72.00 USD, 73.50USD and 75.50USD, with Trailing Stop applied.

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

Short-term trading, M15
The issuer is currently trading between the local support and resistance levels of 70.55/71.15USD. We advise you to search for market entry points once these levels are broken and tested. Positions shall be opened in the direction of the signal line and the nearest support/resistance level. Risk per trade: no more than 3% of equity. Stop Order shall be placed a bit above/below the signal line. Prospective profits shall be fixed partly, at 50%, 30%, and 20% of a prospective fluctuation, with Trailing Stop applied.

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

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