Important note

This AI stock analysis for Walmart is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!

Walmart - AI Stock Analysis

Analysis generated November 1, 2024

Walmart Inc. (NYSE: WMT) is the world's largest retailer, boasting a vast global presence with over 11,000 stores in 27 countries. The company is headquartered in Bentonville, Arkansas, and operates in three segments: Walmart U.S., Walmart International, and Sam's Club. Walmart's business model leverages its vast supply chain and logistics network to offer a wide array of products at competitive prices. The company's omnichannel strategy enhances customer experience by integrating e-commerce and physical stores, improving service and convenience.

Fundamental Analysis

Revenue: Walmart generated $169 billion in revenue for the last quarter, reflecting a 4.85% increase from the previous quarter and a 4.77% increase year over year. This indicates steady growth and robust sales performance.

Net Income: The net income for the last quarter reached $4.5 billion, showing an 11.81% decrease compared to the previous quarter and a 42.96% drop compared to the same quarter last year. This decline underscores concerns over profitability and potential challenges in cost management.

EBITDA: The EBITDA was $11.2 billion, a growth of 11.86% from the last quarter but a decrease of 21.88% year over year. The mixed signals point to underlying challenges that Walmart might face in sustaining its operational efficiency.

P/E Ratio: Walmart's current P/E ratio is 42.39, which may be considered high. This suggests the stock might be overvalued, hinting at bearish sentiment among investors.

Insider Trading: Recent insider selling activity is another bearish indicator, as it might signal a lack of confidence from within the company.

Technical Analysis

Stock Price: Walmart's current stock price stands at $82.20, marking a 1.14% increase over the past month and a 50.99% increase over the past year. This indicates a long-term bullish trend.

SMA10: The current SMA10 is 82.38, slightly higher than the previous SMA10 of 82.37, suggesting a potential upward movement in the stock price.

RSI: The RSI is 29.6, indicating that the stock is potentially oversold, which could present a buying opportunity for investors if the overall bullish trend continues.

Alternative Data Analysis

Job Postings and Employee Sentiment: Walmart has 37,123 open positions, a 9% increase over the last couple of months. This growth in job openings indicates the company's ambition to expand, which is typically a positive sign of health.

Customer Acquisition: The company’s website has an estimated 409 million visitors, though this figure has dropped by 6% recently, which is concerning as it may signal waning customer interest.

Mobile App Downloads: The daily download rate for Walmart’s mobile apps stands at 26,000 but has decreased by 5% in recent months, reflecting similar concerns as the website visits.

Customer Engagement: Walmart's Instagram and Twitter followers have remained steady at 3.4 million and 1.4 million, respectively, with no significant changes. This indicates stable but stagnant engagement levels.

AI Score: AltIndex’s AI score for Walmart stands at 38, which signals a sell recommendation based on a comprehensive analysis of fundamental, technical, and alternative data.

Conclusion and Recommendation

In conclusion, Walmart shows a mixed performance across different metrics. The revenue growth and increase in job postings are positive signs, but the decline in net income, EBITDA, and customer engagement metrics such as website visits and app downloads are concerns that should not be overlooked. The high P/E ratio suggests possible overvaluation, while technical indicators like stock price trend and RSI point to a bullish sentiment with potential for upward movement.

Given these mixed signals, and considering the AI score of 38 which recommends a sell, a cautious approach is advisable. Investors should monitor upcoming earnings reports and further developments in customer engagement and profitability before making significant investment decisions. For those holding Walmart stock, it might be prudent to reassess the position regularly to ensure alignment with one’s investment objectives and risk tolerance.

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.