Giles Coghlan LLB, Lth, MA
HYCM
Walmart’s shares fell heavily on Tuesday this week after earnings showed that inflation is starting to impact Walmart’s operating costs.
The company anticipate inflation impacting their 2023 EPS growth view. They revised it down to -1% from the previous projection of 5-6%. However, revenue for 2023 was revised up 4% from 3% prior.
Will we see Walmart being bought on the dip? Now the future of Walmart’s share prices will depend on a number of factors, not just on how strong Walmart’s seasonals are.
Over the last 15 years Walmart has only lost value once between now and the end of the year. That was in 2015.
Does that mean it makes sense to buy Walmart stock again to hold until the year end?
Major trade risks: If Inflation continues to rise, then the EPS outlook for 2023 could become even worse. A US recession would also impact the outlook for Walmart’s share prices.
High-Risk Investment Warning: Contracts for Difference (‘CFDs’) are complex financial products that are traded on margin. Trading CFDs carries a high degree of risk. It is possible to lose all your capital. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent expert advice if necessary and speculate only with funds that you can afford to lose. Please think carefully whether such trading suits you, taking into consideration all the relevant circumstances as well as your personal resources. We do not recommend clients posting their entire account balance to meet margin requirements. Clients can minimise their level of exposure by requesting a change in leverage limit. For more information please refer to HYCM’s Risk Disclosure. *Any opinions made in this material are personal to the author and do not reflect the opinions of HYCM. This material is considered a marketing communication and should not be construed as containing investment advice or an investment recommendation, or an offer of or solicitation for any transactions in financial instruments. Past performance is not a guarantee of or prediction of future performance. HYCM does not take into account your personal investment objectives or financial situation. HYCM makes no representation and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast, or other information supplied by an employee of HYCM, a third party, or otherwise. Without the approval of HYCM, reproduction or redistribution of this information isn’t permitted.
Recommended content
Editors’ Picks
EUR/USD rebounds toward 1.0750 as risk flows return, German ZEW eyed
EUR/USD is rebounding toward 1.0750 in early Europe. The pair is gaining upside traction amid an upbeat mood, which is capping the US Dollar recovery. Markets cheer the latest global banking sector developments ahead of Germany's ZEW survey.
GBP/USD remains pressured around 1.2250 despite upbeat mood
GBP/USD is on a corrective move lower while testing 1.2250 in the early European morning. A pause in the US Dollar decline is weighing on the pair, despite a better market mood. Investors stay cautious amid the global banking woes and ahead of the Fed decision.
Pullback from yearly highs continues as Credit Suisse rescue soothes markets
Gold price pulls back from its yearly high as global banking jitters pass (for now) and US Treasury yields find a floor, supporting a stronger US Dollar. The precious metal trades at $1,972 at the time of writing as it continues to consolidate within a technical uptrend.
Coinbase argues core staking services are not securities in its letter to SEC
Coinbase submitted a comment letter to the US financial regulator asking for clarification on core staking services. The exchange explained that staking services fail every single prong of the Howey test, therefore, cannot be treated as securities.
FX thoughts for the week
Do central banks face a conflict between their inflation mandate and financial stability? The markets are still grappling with this question and confidence in the financial sector has not fully recovered. For now, central banks are responding with a conditional no.