Colin Laidley
1 min read
In This Article:
Walmart (WMT) is slated to report earnings this week. Some traders are betting the stock could erase most of what it lost after the company’s last quarterly report.
Options pricing suggests traders are positioned for Walmart stock to move about 5% in either direction by the end of the week after the retail giant releases first-quarter results before markets open on Thursday. That could boost the stock to $100.67, which would be its highest price since mid-February when shares tumbled after Walmart issued a disappointing outlook for the first quarter. (It could also drag shares down to $91.09, just slightly above their price at the start of the year.)
A 5% post-earnings move wouldn’t be out of the ordinary for Walmart. Following its last four earnings reports, Walmart’s stock has moved about 5.8% on average. Only one of those reports has sent the stock lower; shares fell 6.5% on the soft outlook mentioned above. The stock rose by amounts ranging from 3% to 7% after the three prior reports.
Analysts are bullish on Walmart stock heading into earnings. All 19 of the Walmart analysts tracked by Visible Alpha rate the stock a “buy.” The average target price, $111, represents nearly 16% upside from Tuesday’s close.
Walmart shares are up about 6% so far this year, but as of Wednesday’s session were trading nearly 9% off their record high from mid-February.
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