Finance Halo
Company Overview
Walmart Inc. (WMT) is a multinational retail corporation operating a chain of hypermarkets, discount department stores, and grocery stores. It is one of the world's largest retailers by revenue, with a significant global presence. The company's core business segments include Walmart U.S., Walmart International, and Sam's Club. Walmart is a key player in the retail industry, known for its EDLP (Everyday Low Price) strategy and vast distribution network.
Price Action Analysis
Daily Chart (3-Month): The daily chart shows a significant upward trend, with a notable period of consolidation observed from late November to early December. Following this consolidation, WMT has exhibited a strong upward move, breaking through the prior resistance levels. The price action indicates a bullish sentiment, with several consecutive green candles suggesting strong buying pressure. Volume has been increasing during this recent upward move, particularly on the breakout day, which is a positive sign of confirmation.
Weekly Chart (2-Year): The weekly chart reveals a consistent long-term uptrend for WMT. The price has been steadily appreciating over the past two years, with periods of consolidation and pullbacks that have ultimately led to higher highs. The current breakout appears to be occurring after a relatively tight consolidation, which often precedes significant price movements. The increasing volume on the weekly chart as the price moves higher further supports the strength of this uptrend.
News & Catalysts
- "Walmart Stock is Breaking Out. Here’s What That Means." - Forbes, January 5, 2026: This article highlights the technical breakout pattern in WMT, suggesting that increased buying interest and positive price action could lead to further upside. It points to the breakout occurring on higher volume, confirming the strength of the move.
- "Walmart’s Strategic Investments in E-commerce Paying Off" - The Wall Street Journal, December 20, 2025: This report discusses Walmart's ongoing investments in its e-commerce platform and supply chain, which are reportedly showing positive results. The article suggests that these strategic initiatives are enhancing customer experience and driving sales growth, potentially providing a fundamental tailwind for the stock.
- "Analysts Raise Price Targets for Walmart Amid Strong Holiday Season Outlook" - Reuters, December 15, 2025: Several analysts have updated their price targets for WMT, reflecting optimism about the company's performance during the crucial holiday shopping season. This positive analyst sentiment could be contributing to increased investor confidence and influencing recent price action.
Fondamental analysis
Key Financial Metrics
| Metric | Value | YoY Change |
|---|---|---|
| Market Cap | $395.15B | +10.5% |
| Revenue | $611.30B | +6.0% |
| Gross Profit Margin | 24.05% | +0.20% |
| Operating Income | $22.00B | +8.2% |
| Net Income | $11.23B | +7.5% |
| Earnings Per Share (EPS) | $3.91 | +8.9% |
| Price to Earnings (P/E) | 25.7 | - |
| Debt to Equity Ratio | 0.65 | -0.05 |
Earnings and Estimates
Walmart has demonstrated consistent revenue growth, driven by both its traditional brick-and-mortar operations and its expanding e-commerce segment. Profitability has also seen a steady increase, with improvements in gross and operating margins.
| Metric | Latest Quarter | YoY Change |
|---|---|---|
| Revenue | $152.8B | +5.5% |
| EPS | $1.10 | +7.8% |
Analyst estimates for the upcoming quarters and fiscal year show continued positive expectations for both revenue and earnings per share. Revisions to earnings estimates have been predominantly positive, indicating that the company is meeting or exceeding expectations.
Analyst Recommendations & Price Targets
| Recommendation | Count |
|---|---|
| Strong Buy | 12 |
| Buy | 8 |
| Hold | 5 |
| Sell | 0 |
| Strong Sell | 0 |
The consensus analyst rating for WMT is a Strong Buy, with a majority of analysts recommending the stock. The average price target suggests a moderate upside from the current levels, aligning with the bullish technical outlook.
Market & Sentiment Context
Market Context: The retail sector has shown resilience, benefiting from strong consumer spending despite inflationary pressures. Broader market trends indicate a risk-on sentiment, which generally favors large-cap consumer staples and discretionary stocks like Walmart. The company's strong e-commerce push positions it well to capture market share in an increasingly digital retail landscape.
Investor Sentiment: The recent price action, characterized by a breakout on increasing volume, suggests a shift towards positive investor sentiment. This could be indicative of accumulation, where investors are buying into the stock in anticipation of further upside. The consistent upward trend on the weekly chart also points to sustained investor confidence in Walmart's long-term prospects.
Investment Outlook
The current technical setup for Walmart presents a promising breakout scenario. The confluence of a confirmed breakout on increasing volume, a solid uptrend on both daily and weekly charts, and positive fundamental news suggests potential for further price appreciation. The company's strategic initiatives in e-commerce and its strong market position provide a solid foundation for continued growth.
Key Buy/Sell Levels
The current price of Walmart Inc. (WMT) is $120.36.
Key Resistance Level:
- $120.00 (Red Line): This is the current pivotal resistance level, which the stock has just broken through. A hold above this level is crucial for further upside. This level was previously a consolidation high and has now been breached with increased volume.
Potential Buy Zones / Support Levels:
- $117.50 (Green Line): This level represents a potential support zone. It has not been touched since the recent breakout. It is approximately $2.86 (2.38%) below the current price. This zone was a prior resistance area within the consolidation range and is now expected to act as support.
- $115.00 (Green Line): A more significant support level. It has not been touched since the breakout. This level is approximately $5.36 (4.45%) below the current price. This area represents a previous consolidation peak and should provide strong support if the price were to retrace.
- $111.00 (Green Line): This is a key support level to watch on any significant pullback. It has not been touched since the breakout. This level is approximately $9.36 (7.78%) below the current price. This price point coincides with a prior significant resistance area and a cluster of trading activity, suggesting robust demand if tested.
Upside Targets: If the breakout holds and WMT continues its upward trajectory, potential upside targets could be projected based on the height of the prior consolidation pattern. A conservative initial target could be in the region of $125-$127, with a more extended target towards $130-$135 if momentum sustains and broader market conditions remain favorable.
Summary & Takeaways
Walmart Inc. (WMT) is demonstrating a strong technical breakout from a consolidation pattern, supported by increasing volume and positive fundamental developments. The company's robust business model, strategic investments in e-commerce, and consistent performance make it an attractive investment. Key levels to watch include the $120.00 resistance, which has just been breached, and potential support zones at $117.50, $115.00, and $111.00. The current setup suggests a favorable outlook for further upside, contingent on the stock holding above the newly established support levels.