Walmart Stock Buy Hold or Sell Recommendation

WMT
 Stock
  

USD 153.22  0.15  0.1%   

Considering the 90-day investment horizon and your way above-average risk tolerance, our recommendation regarding Walmart is 'Strong Buy'. Macroaxis provides Walmart buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Walmart positions. The advice algorithm takes into account all of Walmart's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Walmart's buy-and-hold perspective. Check out Walmart Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Walmart and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Walmart.

Execute Walmart Buy or Sell Advice

The Walmart recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Walmart. Macroaxis does not own or have any residual interests in Walmart or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Walmart's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell WalmartBuy Walmart
Strong Buy

Volatility

Details

Hype Condition

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Current Valuation

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Odds of Distress

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Economic Sensitivity

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Analyst Consensus

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Financial Strenth (F Score)

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Financial Leverage

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Reporting Quality (M-Score)

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For the selected time horizon Walmart has a Risk Adjusted Performance of 0.2328, Jensen Alpha of 0.1639, Total Risk Alpha of 0.1248, Sortino Ratio of 0.0978 and Treynor Ratio of 0.3778
Macroaxis provides trade recommendation on Walmart to complement and cross-verify current analyst consensus on Walmart. Our trade advice engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Walmart is not overpriced, please check out all Walmart fundamentals, including its revenue, earnings per share, annual yield, as well as the relationship between the total debt and total asset . Given that Walmart has a price to book of 5.75 X, we strongly advise you to confirm Walmart market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevalent risk tolerance and investing horizon.

Walmart Trading Alerts and Improvement Suggestions

The company has 39.11 B in debt with debt to equity (D/E) ratio of 0.81, which is OK given its current industry classification. Walmart has a current ratio of 0.85, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Debt can assist Walmart until it has trouble settling it off, either with new capital or with free cash flow. So, Walmart's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Walmart sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Walmart to invest in growth at high rates of return. When we think about Walmart's use of debt, we should always consider it together with cash and equity.
Walmart has a strong financial position based on the latest SEC filings
About 48.0% of Walmart outstanding shares are owned by insiders
Latest headline from news.google.com: WMT 3 Stocks to Add to Your Watchlist This Holiday Season - StockNews.com

Walmart Returns Distribution Density

The distribution of Walmart's historical returns is an attempt to chart the uncertainty of Walmart's future price movements. The chart of the probability distribution of Walmart stock daily returns describes the distribution of returns around its average expected value. We use Walmart price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Walmart returns is essential to provide solid investment advice for Walmart.
Mean Return0.23Value At Risk-2.33
Potential Upside2.18Standard Deviation1.46
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Walmart historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Walmart Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Walmart is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Walmart backward and forwards among themselves. Walmart's institutional investor refers to the entity that pools money to purchase Walmart's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Security TypeSharesValue
Zwj Investment Counsel IncCommon Shares4.4 K574 K
Zwj Investment Counsel IncCommon Shares4.5 K543 K
Zwj Investment Counsel IncCommon Shares3.7 K554 K
Zwj Investment Counsel IncCommon Shares4.1 K596 K
Zwj Investment Counsel IncCommon Shares4.1 K568 K
Zwj Investment Counsel IncCommon Shares5.9 K828 K
Zwj Investment Counsel IncCommon Shares5.9 K798 K
Note, although Walmart's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Walmart Cash Flow Accounts

201720182019202020212022 (projected)
Net Cash Flow from Financing(19.88 B)(2.54 B)(14.3 B)(16.12 B)(22.83 B)(24.63 B)
Net Cash Flow from Investing(9.06 B)(24.04 B)(9.13 B)(10.07 B)(6.01 B)(6.49 B)
Net Cash Flow from Operations28.34 B27.75 B25.25 B36.07 B24.18 B24.13 B

Walmart Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Walmart or Food & Staples Retailing sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Walmart's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Walmart stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
0.16
β
Beta against NYSE Composite0.58
σ
Overall volatility
1.46
Ir
Information ratio 0.08

Walmart Volatility Alert

Walmart has relatively low volatility with skewness of 0.98 and kurtosis of 4.46. However, we advise all investors to independently investigate Walmart to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Walmart's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Walmart's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Walmart Implied Volatility

Walmart's implied volatility exposes the market's sentiment of Walmart stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Walmart's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Walmart stock will not fluctuate a lot when Walmart's options are near their expiration.

Walmart Fundamentals Vs Peers

Comparing Walmart's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Walmart's direct or indirect competition across all of the common fundamentals between Walmart and the related equities. This way, we can detect undervalued stocks with similar characteristics as Walmart or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Walmart's fundamental indicators could also be used in its relative valuation, which is a method of valuing Walmart by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Walmart to competition
FundamentalsWalmartPeer Average
Return On Equity0.11 %(0.31) %
Return On Asset0.05 %(0.14) %
Profit Margin0.0149 %(1.27) %
Operating Margin0.0346 %(5.51) %
Current Valuation467.5 B16.62 B
Shares Outstanding2.7 B571.82 M
Shares Owned by Insiders48.39 %10.09 %
Shares Owned by Institutions32.59 %39.21 %
Number of Shares Shorted11.81 M4.71 M
Price to Earning47.07 X28.72 X
Price to Book5.75 X9.51 X
Price to Sales0.69 X11.42 X
Revenue572.75 B9.43 B
Gross Profit143.75 B27.38 B
EBITDA31.08 B3.9 B
Net Income13.94 B570.98 M
Cash and Equivalents14.76 B2.7 B
Cash per Share4.27 X5.01 X
Total Debt39.11 B5.32 B
Debt to Equity0.81 %48.70 %
Current Ratio0.87 X2.16 X
Book Value Per Share26.65 X1.93 K
Cash Flow from Operations24.18 B971.22 M
Short Ratio1.79 X4.00 X
Earnings Per Share3.25 X3.12 X
Price to Earnings To Growth4.00 X4.89 X
Target Price160.67
Number of Employees2.3 M18.84 K
Beta0.53-0.15
Market Capitalization415.37 B19.03 B
Total Asset244.86 B29.47 B
Retained Earnings68.08 B9.33 B
Working Capital(4.38 B)1.48 B
   Payment of tradable shares by David Chojnowski of Walmart subject to Rule 16b-3 [view details]

Walmart Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Walmart . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Walmart Buy or Sell Advice

When is the right time to buy or sell Walmart? Buying financial instruments such as Walmart Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2020 2021 2022 (projected)
Receivables6.28 B6.52 B8.28 B6.94 B
Inventories44.44 B44.95 B56.51 B48.06 B

Use Investing Ideas to Build Portfolios

In addition to having Walmart in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Financials Thematic Idea Now

Financials
Financials Theme
Companies that provide financial services to business or retail customers. The Financials theme has 20 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Financials Theme or any other thematic opportunities.
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Check out Walmart Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.

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When running Walmart price analysis, check to measure Walmart's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Walmart is operating at the current time. Most of Walmart's value examination focuses on studying past and present price action to predict the probability of Walmart's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Walmart's price. Additionally, you may evaluate how the addition of Walmart to your portfolios can decrease your overall portfolio volatility.
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Is Walmart's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Walmart. If investors know Walmart will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Walmart listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.24
Market Capitalization
416.3 B
Quarterly Revenue Growth YOY
0.087
Return On Assets
0.0527
Return On Equity
0.11
The market value of Walmart is measured differently than its book value, which is the value of Walmart that is recorded on the company's balance sheet. Investors also form their own opinion of Walmart's value that differs from its market value or its book value, called intrinsic value, which is Walmart's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Walmart's market value can be influenced by many factors that don't directly affect Walmart's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Walmart's value and its price as these two are different measures arrived at by different means. Investors typically determine Walmart value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Walmart's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.