Will Walmart beat analyst estimates?

The company is expected to report Q2 earnings next week.

Uptrend 2

On Tuesday August 18th Walmart (WMT), the retail giant, is expected to post second quarter EPS of $1.25 compared to $1.27 a year ago on revenue of $135 billion vs $130.4 billion last year. The expected move based on front-month options is 5.3%, the last time the Co reported earnings the stock declined 2.1%. The stock has 46 buys, 10 holds and 2 sells according to a Bloomberg consensus.

Looking at the price action, Walmart has maintained an uptrend

since 2015 lows. The 100-week moving average has been acting as support. If price action can remain above the 100-week moving average, we should see a continuation of the trend towards Fibonacci extension targets of $147 and $165. The 50% retracement level rests at $107 just below the 100-week MA which can also be used as a bearish signal and a warning of the bullish trend coming to an end. 

Source: GAIN Capital, TradingView

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