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May 18, 2022
[1 min Read]
Repost from (r/DD_And_Dividends)
WMT is currently down over 15% in the last month. My opinion is that it is due to a broader market sell off due to fear and weak hands. I think that we may see a bottom soon before consolidation and a move even higher to ATH's (all time highs).
Things I like:
P/S- the ratio is currently considered a bargain from it peers Target (.99) and Dollar General (1.57)
EPS- the eps is positive and has a trend of beating earnings. Although it did not meet analyst expectations, we should have know inflation was going to hurt everyones earnings. I have a forward looking opinion at the bottom of this post. So read to the end.
BVPS- the BVPS is growing from a QoQ rate and YoY. Their Cash Reserves per share are also in line with the growth. Stability is there and it seems very healthy.
PE- the PE seems inflated compared to its peers, but I believe this is an easy thing to look past given it's balance sheet.
News- Contrary to the news, WMT did fine on earnings. With inflation hitting the price of goods, I believe Walmart will reap the rewards as a slightly cheaper vendor than Target. Dollar General is also doing well because of the price increases even after adjusting their prices higher. Walmart has always been one of the green companies in a red market. And a safe have for investors in hard times.
Walmart is definitely oversold in my opinion. We may not be at bottom yet. But I will definitely buy this in the coming weeks. This is a great opportunity for even a mid to long term value-swing play. The Fundamentals and technicals are there.
I will be buying the $155 strike 16 Sep 22 Calls. And I WILL BE posting my gains or losses.