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Are Wal-Mart Shares Overbought at Current Levels?

Wal-Mart Stores, Inc. shares soared more than 10% on Thursday after the company reported better-than-expected third quarter financial results. Revenue rose 4.2% to $123.2 billion – beating consensus estimates by $2.2 billion – and earnings per share of $1.00 beat consensus estimates by three cents per share. Comparable sales increased 2.7% during the quarter compared with consensus estimates calling for just a 1.9% gain.

The most significant developments were in the company’s e-commerce division. Digital sales increased 50%, and gross merchandise volume rose 54% during the quarter. Early analyst reactions have been favorable across the board, and investors are starting to see how the traditional retailer can compete against rising online threats like Amazon.com, Inc. The fundamental case for Wal-Mart has certainly become a lot stronger. (See also: Wal-Mart Shares Jump on Strong U.S. Sales Growth.)

Wal-Mart shares soared after favorable third quarter financial results, but they could be in for some near-term consolidation. …read more

Read more here: Are Wal-Mart Shares Overbought at Current Levels?

Category: WMT, AMZN

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