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Walmart - AI Stock Analysis

Analysis generated April 28, 2025

Walmart Inc. (NYSE: WMT) is a multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores. Founded by Sam Walton in 1962, Walmart is headquartered in Bentonville, Arkansas. The company is renowned for its significant impact on the retail industry and maintains a presence in numerous countries. With its extensive network of stores and robust online platform, Walmart continues to be a leading retailer worldwide, aiming to offer a wide array of products at everyday low prices.

Fundamental Analysis

Revenue for the last quarter was $181 billion. This is an increase of 6.47% compared to the quarter before it, which is a positive sign of growth. Compared to the same quarter last year, there is an increase of 4.13%, suggesting positive year-over-year growth. Such growth in revenue indicates Walmart's strong market position and its ability to drive sales despite economic fluctuations.

Net income for the last quarter was $5.25 billion. This is an increase of 14.79% compared to the quarter before it, demonstrating strong profitability. However, compared to the same quarter last year, there is a decrease of 4.37%, which may be a cause for concern. A year-over-year decline in net income may point towards rising costs or decreased efficiency.

EBITDA for the last quarter was $11.1 billion. This is an increase of 64.79% compared to the quarter before it, which is a remarkable sign of growth. Compared to the same quarter last year, there is an increase of 6.59%, suggesting positive year-over-year growth. EBITDA growth reflects Walmart's operational efficiency and healthy earnings before interest, taxes, depreciation, and amortization.

The current P/E ratio is 39.46. This high P/E ratio may be considered an indication of overvaluation and potentially a bearish outlook. Investors are paying a premium for Walmart's earnings, which can be seen as confidence in future growth or a signal of overpricing.

In the last couple of months, there have been several company insiders selling their stock. This insider activity may be a bearish signal, suggesting a lack of confidence from those closest to the company's operations.

Technical Analysis

Today’s stock price is $95.22. This is an increase of 11.83% compared to a month ago, indicating a positive short-term trend. Compared to a year ago, there is an increase of 59.85%, suggesting a positive long-term trend. The trend continues to be bullish.

The current SMA10 (Simple Moving Average over 10 days) is 94.50, which is higher than the previous SMA10 of 94.30. This indicates a potential upward trend in price movement. A rising SMA10 often signals bullish momentum.

The RSI (Relative Strength Index) is 54.8, indicating a neutral condition. The RSI above 50 typically suggests that buying momentum is slightly higher than selling momentum, but it is not yet in the overbought territory.

Alternative Data Analysis

Starting with job postings and employee sentiment, Walmart has 25,424 open positions, down by 15% in the last couple of months. This reduction indicates that Walmart might be trying to improve its margins or cut costs, which is not a great sign for a growing company.

The business outlook among employees at Walmart is neutral. Neutral employee sentiment suggests a stable but not necessarily optimistic workplace environment.

Moving on to customer acquisition, Walmart has an estimate of 431 million visitors to their webpage, down by 23% in the last couple of months. This decline is worrisome as it may indicate a loss in customers. Additionally, the company has an estimate of 24,000 users downloading their mobile apps every day, down by 15% in the last few months. This trend is a cause for concern as it could point to diminishing customer engagement.

Regarding customer engagement, Walmart has 3.5 million followers on their Instagram page and 1.4 million followers on their Twitter page, with no meaningful increase or decrease in the last few months. Stable social media following indicates consistent but flat engagement.

AltIndex's AI score, which predicts a company’s stock price based on fundamental, technical, and alternative data analysis, is 49 for Walmart. This score is a hold signal, suggesting that investors should maintain their current position rather than buying or selling the stock.

Conclusion and Recommendation

Walmart demonstrates strong revenue growth and improved EBITDA, highlighting operational efficiency and market strength. However, the decline in net income compared to the previous year and insider stock sales signal potential issues. The technical indicators show a bullish trend, supported by a rising SMA10 and a neutral RSI, indicating stable but cautious optimism. Alternative data reflects a mixed outlook with reduced job postings, declining web traffic, and neutral employee sentiment.

Given the high P/E ratio and the decline in customer engagement metrics, caution is warranted. Walmart's current market valuation and varied signals from alternative data suggest a hold position. Investors should monitor further developments in revenue growth, insider activity, and customer engagement trends to make well-informed decisions.

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.