Walmart Inc (NYSE: WMT) is trading at an all-time high above $160. Can it keep breaking new highs or is a pullback coming?
Wall Street analysts believe that Walmart stock has more fuel to push to new heights within the next 12 months.
The average analyst target price sees a 10% gain
TipRanks analysts have a ‘strong buy’ rating based on 30 analysts, where the majority is bullish on the stock. The average price target for the next 12 months is $178, which is 10% above the current market price of $161.
Only four of the 30 analysts have a ‘Hold’ rating, but their target price is still above the current market price.
Walmart’s Q2 earnings smashed expectations, with same-store sales rising 6.30% vs. 4.04% expected. What’s more, the retail giant expects sales to increase by 3% in Q3 while raising its full-year guidance, with sales expected to increase approximately 4% to 4.5%.
Another interesting point was the increase in e-commerce net sales by 24%, led by pickup and delivery. Online sales now make up 12.3% of total sales in 2023. This has created valuable customer data for Walmart, which can help the retailer tailor offerings to shoppers and further increase online sales.
Arun Sundaram, an analyst at CFRA, said:
“It was another solid quarter, causing WMT to raise its full-year guidance once again. With investors starting to look toward next fiscal year, we see plenty of levers for WMT to continue its strong momentum and grow margins.”
Walmart stock technical analysis
Walmart stock has been trading in an ascending channel since June 2022. The stock made a few attempts to break higher and lower, but it always returned within the channel.
Even though the stock makes higher highs and higher lows within the channel, this is a bearish pattern because the probability of the price breaking out on the lower side is higher.
At the moment, $145 acts as a strong support level. This means if the price breaks out of the channel on the lower side, it is likely to consolidate around $145. If you’re bullish on the stock long-term, it could be a good place to accumulate.
Even with the Walmart stock breaking new heights, it’s only up 12% year-to-date. That’s outperformed by the S&P 500’s 18% return within the same period.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
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