Strong Walmart earnings may already be priced in with shares near record

) earnings amid signs of weaker discretionary spending could add fuel to a rally that has propelled its shares to record highs, or potentially spook investors looking to justify the heavyweight retailer’s pricey valuation.

Shares of Walmart recently traded at about 25 times expected earnings, up from a 10-year average valuation of about 20, suggesting investors expect strong profit growth, according to LSEG data. Walmart replenished its inventories at a slower rate than some of its peers, according to LSEG data for the fiscal quarter ended January 31. Both Kroger and Costco showed better inventory turnover than Walmart, according to LSEG data for their latest fiscal quarters. High inventory levels potentially raise Walmart’s costs, jeopardizing its profit margins.

B. Riley Wealth’s chief market strategist Art Hogan said he expects Walmart’s shares to trend higher if it beats revenue and earnings estimates on Thursday.

Sverige Senaste nytt, Sverige Rubriker

Similar News:Du kan också läsa nyheter som liknar den här som vi har samlat in från andra nyhetskällor.

Strong Walmart earnings may already be priced in with shares near recordExplore stories from Atlantic Canada.
Källa: SaltWire Network - 🏆 45. / 63 Läs mer »

Strong Walmart earnings may already be priced in with shares near recordWalmart's earnings amid signs of weaker discretionary spending could add fuel to a rally that has propelled its shares to record highs, or potentially spook ...
Källa: YahooFinanceCA - 🏆 47. / 63 Läs mer »

Walmart, Home Depot earnings: Checking in on the US consumerBig-box retailers Home Depot (HD) and Walmart (WMT) are set to report their first-quarter earnings figures on Tuesday, May 14, and Thursday, May 16...
Källa: YahooFinanceCA - 🏆 47. / 63 Läs mer »

Walmart earnings, CPI, housing data: What to Watch Next WeekMarket Domination Overtime Hosts Josh Lipton and Julie Hyman preview the biggest headlines and events for investors next week, including earnings out from...
Källa: YahooFinanceCA - 🏆 47. / 63 Läs mer »

Walmart Is Next Test for Traders Fretting About Consumer StocksEarnings from a string of household names are stoking concern over the resilience of American consumers and stocks tied to their spending, raising the stakes for results from the nation’s largest retailers.
Källa: BNNBloomberg - 🏆 83. / 50 Läs mer »