Can Walmart’s Fiscal 4Q18 Results Raise Its Stock Higher?



What analysts expect for fiscal 4Q18

Walmart (WMT) is set to report its fiscal 4Q18 results on Tuesday, February 20, 2018. Analysts expect the company’s top and bottom lines to continue to improve on a YoY (year-over-year) basis. Sales are projected to grow, led by the company’s digital initiatives. Its top-line growth rate could be further supported by improving store traffic, driven by value pricing, store remodels, and a focus on merchandising and fresh offerings.

Analysts also expect the company’s bottom line to register YoY growth, driven by improving sales and a lower outstanding share count. However, pressure on its margins from increased investment in growth is expected to remain a drag.

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YTD stock performance

Walmart stock has risen 1% on a YTD (year-to-date) basis as of February 12, 2018. Most of its gains in January were eroded by the recent stock market sell-off, most likely triggered by possible rising interest rates. During the last ten days, Walmart stock has fallen 9%. However, the stock has performed better than the S&P 500 Index (SPX-INDEX), which has fallen 1% YTD.

In comparison, Costco (COST) stock is trading in the red and has marked a YTD decline of 3%. Target (TGT) has outperformed its peers with its stock rising 10.2% on a YTD basis.


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