After the holiday on Monday, the US stock market started the new trading week with further declines yesterday. After the great rally since the end of October, it’s time to take a breather.

Bucking the weaker market was Walmart. The share price of the retail giant even climbed to a new all-time high after the earnings report.

Walmart: World’s largest retail company Even if Walmart is no longer represented in Germany, I assume that you are familiar with the American traditional company. Walmart is not only the world’s largest retail company, but also the world’s largest company in terms of revenue. In the just completed fiscal year, the group generated revenues of $648 billion – more than any other company around the globe.

The company from Bentonville, Arkansas employs approximately 2.1 million people worldwide and is also the world’s largest employer. Currently, the US company operates more than 11,000 stores in 27 countries around the world under the brands „Walmart“ and „Sam’s Club“.

Walmart exceeds expectations and announces an acquisition Yesterday, the US company presented its quarterly results. In the final quarter of the 2023/2024 fiscal year (until January), the group increased its sales by 6% to $173.39 billion. Although net profit fell by 13% to $5.49 billion, earnings per share were significantly higher than analysts‘ estimates of $1.64, at $1.80.

For the new fiscal year, Walmart expects a currency-adjusted sales increase of 3 to 4%, despite the continued subdued consumer sentiment. Adjusted earnings per share are expected to increase by up to 7% to $6.70 to $7.12.

At the earnings presentation, the group also announced an acquisition. For $2.3 billion, Walmart is acquiring TV manufacturer and streaming provider Vizio. The company, founded in 2002, has over 18 million active accounts. Through the acquisition, the retailer aims to boost its advertising business, „Walmart Connect“.

Source: www.aktienscreener.com

New all-time high After the earnings report, Walmart’s share price rose by over 3% yesterday, marking a new all-time high. Following this strong trend signal, the path is clear for further price increases from a technical chart perspective.

The upcoming 3-for-1 stock split on Monday could provide additional tailwind. The stock price will drop to one-third of its previous value, while the number of shares traded will triple. In the end, nothing changes. However, stock splits strengthen demand and therefore often have a positive effect on price development.

Everything points to a continuation of the long-term uptrend. In the medium term, Walmart’s share price should be able to target levels around $210 (split-adjusted $70).