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Walmart - AI Stock Analysis

Analysis generated January 21, 2025

Walmart Inc. is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores. Founded by Sam Walton in 1962 and headquartered in Bentonville, Arkansas, Walmart is one of the world’s largest and most well-known retail companies. It is a staple in the retail industry and has successfully branched into e-commerce and other sectors over the years.

Fundamental Analysis

Walmart's revenue for the last quarter was $170 billion, a slight increase of 0.15% compared to the previous quarter. This subtle rise is a positive indicator of growth. Compared to the same quarter last year, revenue has increased by 5.46%, highlighting substantial year-over-year growth. Steady growth in revenue indicates that Walmart continues to maintain its position as a leader in the retail industry.

The net income for the last quarter stood at $4.58 billion, an increase of 1.69% compared to the previous quarter. More notably, there was a remarkable increase of 910.38% compared to the same quarter last year. This significant year-over-year growth in net income emphasizes increased profitability for Walmart.

However, the EBITDA for the last quarter was $6.71 billion, which marks a decrease of 39.84% compared to the preceding quarter. This downturn indicates potential issues in operational efficiency. Nonetheless, compared to the same quarter last year, there was a 46.37% rise in EBITDA, reflecting an overall positive yearly trend.

Walmart’s current Price-to-Earnings (P/E) ratio is 37.99. This relatively high P/E ratio could signify that the stock is overvalued, leading to a bearish outlook from some analysts. Moreover, recent insider selling could also cast doubts on the stock's short-term prospects.

Technical Analysis

Walmart's current stock price is $93.08, reflecting an increase of 0.91% compared to a month ago, indicating a bullish short-term trend. Furthermore, over the past year, the stock price has risen by 74.01%

The stock's Simple Moving Average (SMA10) is at 91.88, slightly up from the previous SMA10 of 91.87, suggesting a potential upward trend in price movement. However, the Relative Strength Index (RSI) stands at 73.4, indicating the stock might be overbought, hinting at a bearish condition.

Alternative Data Analysis

Walmart has 30,000 open positions according to popular job boards, down by 13% in the last couple of months. This indicates that the company might be aiming to improve its margins or cut costs, which is not an ideal scenario for a growth company. Employee sentiment towards the business outlook remains neutral.

The company’s customer acquisition metrics depict a promising trend. Walmart's webpage saw approximately 557 million visitors, which marks an increase of 36% in recent months, indicating potential growth in customer base. Also, Walmart observes around 31,000 daily mobile app downloads, which is an increase of 20% recently, further signifying a bullish trend in customer acquisition.

On the customer engagement front, Walmart has 3.5 million followers on Instagram with no significant increase or decrease in recent months. Similarly, the Twitter follower count stands at 1.4 million with no change, reflecting a stagnation in social media growth.

According to AltIndex's AI score, Walmart has a score of 52, which translates to a hold signal based on the overall fundamental, technical, and alternative data analysis.

Conclusion

In conclusion, Walmart continues to show growth in revenue and net income, indicating a strong overall performance. However, certain metrics such as a high P/E ratio and recent insider selling suggest caution might be warranted. The technical analysis shows a bullish trend in the short to long term, but the overbought RSI indicates potential for downward price correction. The alternative data analysis presents mixed signals, with positive signs in customer acquisition counterbalanced by decreased job postings and stagnant social media engagement.

Given the current landscape of Walmart's fundamental performance, technical indicators, and alternative data insights, it might be prudent to maintain a hold position on this stock, considering both the positive and emerging concerns in the market.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.