Walmart (WMT) Fundamental & Technical Analysis


Walmart is one of the few companies that has outshined its competitors in the big box retail space as inflation drove consumers look for budgets, especially in the household grocery department. The company’s recent earnings proved its strength amongst its competition as they beat both on revenue and profit projections, but is this enough to justify their current valuation near all time highs? Walmart is currently trading at a price to earnings ratio of 30, which is right around the Discount Store industry average of 29. It holds the largest market cap followed by by Costco and Target. Revenue trends for the giant retailer has grown substantially thanks to online sales in the last five years, and it is only expected to grow as Walmart captures more of  online consumer spending. Free cash flow is also healthy, currently at 19B, which gives them room to breathe in the case of an unexpected event. 

All in all, Walmart’s foundational aspects are strong and the company has proven to be resilient through the tough economy. Their valuation is a bit high right now so if entered, consider easing in and slowly use the DCA method as it develops through the months. Investors in Walmart shouldn’t expect massive growth because it is not a growth stock, but investors should expect a steady upside gain through dividends and slow growth in the years to come.