Dow component Walmart Inc. missed fourth quarter EPS estimates by four cents while reporting a 2.6% increase in comparative sales in Tuesday’s pre-market release, triggering a modest slide after last week’s oversold bounce lifted the retailing giant to a two-week high. A reduction in fiscal year 2019 guidance may keep buyers on the defensive in coming sessions and could generate the next leg in an intermediate correction that reaches the low $80s.
The stock broke out above 2015 resistance in October and posted a healthy series of all-time highs into late January. Market players exhibited enthusiastic buying interest in reaction to rapid online sales growth, with the company set to challenge internet juggernaut Amazon.com, Inc. on many retail fronts in coming years. As a result, a steep decline should offer a historic buying opportunity ahead of a long-term growth spurt and much higher prices. (See also: How Walmart Model Wins With ‘Everyday Low Prices’.)
Walmart stock is selling off after a poorly received fourth quarter earnings report and may be headed for the low $80s. …read more
Read more here: Walmart Sellers in Control After Earnings Miss
Category: WMT, AMZN