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Walmart Stock Jumps on Optimistic Projections

Walmart posted positive Q4 earnings

Walmart released its earnings figures for Q4, as well as January sales yesterday, showing that price pressures are falling. January’s numbers were also pretty horrendous, but Walmart economists expect a strong rebound in the following months. This was positive for Walmart stocks, sending them more than $10 higher.

Walmart Q4 Earnings Report

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The company reported a 4.0% increase in US comparable sales during the last quarter of 2024, noting a decrease in general merchandise prices compared to the previous year. The decline in general merchandise prices softened during Q4 compared to Q3, resulting in lower prices year over year but not as much as expected.

While sales of general products decreased compared to the previous year, they increased compared to the third quarter. Outside of the US, prices were more within a reasonable range compared to the previous year. US inventory fell by 4.5%. The company projects a 4.0-5.0% increase in Q1 sales due to the leap year, with FY 2025 sales expected to rise by 3.0-4.0%.

The decline in January sales is attributed to weather-related factors rather than macroeconomic issues. However, the exceptionally warm weather in February is expected to lead to a significant rebound in retail sales, compensating for the earlier decline.

Walmart Purchasing Vizio Holdings Corporations

Besides that, Walmart is acquiring Vizio Holdings Corp. for $11.50 per share in cash, which is aimed at expanding its advertising business. The acquisition will offer Walmart access to a profitable advertising business that is rapidly scaling, according to Seth Dallaire, executive vice president and chief revenue officer of Walmart U.S.

Walmart Opened With A Major Bullish Gap Yesterday

Walmart’s stock (WMT) has been performing well since the middle of December, reaching an all-time high and experiencing a 15% increase in value since the beginning of the year, with around 8% of the gains coming yesterday alone. The 20SMA (gray) hasn’t been able to hold on with the pace of the increase during the stock’s upward trend since January, indicating strong bullish momentum and investor confidence in the company. So, we’re waiting for a pullback, probably to the 20 daily SMA to go long on Walmart stocks.

Walmart Sales Comparison by Month

  • November Sales: -2.7%
  • December Sales: +0.6%
  • January Sales: -9.1%
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Skerdian Meta
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Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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