Furthermore, the firm said the operating margin will be about 4.2% for Q2 and 3.8% to 3.9% for FY 2023. CEO Doug McMillon sees inflationary forces affecting consumer spending, causing pressure on the store’s merchandise. Finally, the guidance cut highlighted that customers are choosing Walmart to save money during inflation, which is reflected in the market share gains in the groceries category.
WMT chart and analysis
In the last month, WMT has been trading in a wide range between $119.89 and $133.39, with the long-term trend remaining negative as the shares are down 8.73% year-to-date (YTD). With the after-hours move, the support line has moved to $118.29, and the resistance zone now ranges between $122.22 and $122.96. TipRanks analysts rate the shares a strong buy, predicting that in the next 12 months, the average price the stock will reach is $155.10, 17.48% higher than the current trading price of $132.02. With Walmart’s earnings report coming on August 16, the guidance cut seemingly spooked investors. Inflation is causing issues across the board for companies, with some pausing new hires while others are simply missing on earnings. Despite all of this, the retail giant has a loyal customer base and should perform well in the long run; however, short term, the shares may see more volatility. Buy stocks now with Interactive Brokers – the most advanced investment platform Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
