How is Walmart Doing After Its Dismal Feb Earnings

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• Walmart dropped close to $18 since it reported a weak set of earnings in Feb. Share price had since plunged almost 17% since then.
• Revenue was higher but a missed on profits ; lower e-commerce growth than expected and a lower 2018 guidance saw Walmart took a beating.
• Reason could be more due to the heighten valuation rather than the result as result was actually fairly inline. Prior earnings WMT valuation was at  24p/e X multiples which does seems very expensive as compared to other annual earnings

Forawrd p/e currently at 16.63 while current P/E 17.65 have traded nearer back to its 2017 average levels. [See Chart with P/E ]

• On valuation, the risk on Walmart is that it is more expensive than many of its retail competitor while it struggles against e-commerce giant Amazon [See Peers valuation]
• Bloomberg consensus rating of 3.78, 15 buys and 22 holds and 0 sell with 12M target PX of $105.31
• Current price at possible technical support with the RSI and MACD showing slight indication of bullishness. Price also currently sits at the Trend line support + Fib61.8 retracement
• Break of the trendline would see $81.73 as the next support level.

Personal take : Worth a shortlist for sure and could even take a small positioning at current price due to technical chart. But any further detertoration of price would points to a very attractive valuation and definitely worth relooking at.

Historical Annual Earnings Release with Price Change.

Chart with P/E

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Price Chart

Peers valuation