Giles Coghlan LLB, Lth, MA
HYCM
Walmart is an American multinational retail corporation which focuses on discount department stores mainly in the US. With the US economy showing signs of slowing down and many analysts seeing a strong chance of the US heading into a recession Walmart stores can potentially see an uptick in demand. The rationale is that during recessions US shoppers will be more likely to visit discount retailers as their spending power falls.
Over the last 25 years, Walmart has gained 80% of the time between February 27 and April 6. The largest return has been over 30% in 2000 and the largest loss was 4.71% in 2018. Does it make sense to buy Walmart shares as we head into the end of February?
Major trade risks: The major trade risk here is that the seasonal pattern does not repeat itself and that Walmart has some unexpected bad news for shareholders.
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