Truist Securities gives a Hold rating at $153 for Walmart(WMT:NYE)

STA Research
by: STA Research

Truist Securities initiates coverage on Walmart with a hold rating and a target of $153 on the company’s stock.

Based on the Walmart Inc. stock forecasts from 18 analysts, the average analyst target price for Walmart Inc. is USD 169.77 over the next 12 months. Walmart Inc.’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Walmart Inc. is Slightly Bearish, which is based on 6 positive signals and 9 negative signals. At the last closing, Walmart Inc.’s stock price was USD 145.47. Walmart Inc.’s stock price has changed by +1.95% over the past week, +1.90% over the past month and -1.02% over the last year.

Walmart Inc. is the worlds biggest retailer and sells retail, wholesale, and  worldwide through it’s divisions which include Walmart U.S., Walmart International, and Sam’s Club.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers (for a hold period of at least 12 months) and are in the top quartile. Although stability is good, also keep in mind it can limit returns.

Underpriced compared to book value

The stock is trading low compared to its peers on a price-to-book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Low debt

The company is less leveraged than its peers and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

 

What we don’t like:

Below median total returns

The company has underperformed its peers on annual average total returns in the past 5 years.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced on a cash flow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

Poor return on equity

The company management has delivered below median return on equity in the most recent 4 quarters compared to its peers.

Poor capital utilization

The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.

Overpriced on a free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector

Low Dividend Growth

This stock has shown below median dividend growth in the previous 5 years compared to its sector.

 

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