Should I buy Walmart shares ahead of second-quarter earnings results?

Walmart Inc (NYSE: WMT) is scheduled to announce second-quarter earnings results on Tuesday, August 17th, after market close, and according to Bank of America, Walmart should post strong earnings results. Walmart shares continue to trade near record highs, and according to technical analysis, there is no risk of the trend reversal.

Fundamental analysis: Bank of America maintains a buy rating on Walmart with a price target of $185

Walmart will announce second-quarter earnings results next Tuesday, and it is important to say that Bank of America expects a very positive report. Robert Ohmes, an analyst from Bank of America, expects a strong second-quarter report from Walmart and potential upside guidance for the third quarter on back-to-school/general merchandise strength.

Are you looking for fast-news, hot-tips and market analysis?

Sign-up for the Invezz newsletter, today.

“Walmart U.S. sales growth may outpace Amazon’s total ‘online stores’ growth” with help from added merchandise, same-day delivery and pickup, and other offers. We believe Walmart’s omnichannel transformation in the U.S. will continue to gain momentum and support more sustainable and predictable positive same-store sales and traffic at U.S. Supercenters and U.S. e-commerce and GMV growth that should support P/E multiple expansion,” Bank of America reported.

The retail market continues to improve based on positive consumer behavior trends, which are seen to recapture the share lost to conventional grocers during the pandemic. Bank of America maintains a buy rating on Walmart with a price target of $185, while Wells Fargo also upgraded the retail giant ahead of the second-quarter earnings report.

Wells Fargo lifted its price target on Walmart to $165 as the retail giant continues to move in the right direction. The analyst team of Wells Fargo reported that even in this ongoing bull market, Walmart has significant upside potential and valuation still looks attractive.

The consensus Wall Street rating on Walmart remains bullish; the research company Cowen assigned the outperform rating on Walmart with a $170 price target while Credit Suisse has a $158 target price. Looking forward, Walmart has strong growth prospects, WMT trades at less than eleven times TTM EBITDA, and shares of this company could provide solid returns over the next few years.

Technical analysis: Bulls remain in the control of price action

The critical support levels are $145 and $140; $155, $160, and $165 represent the current resistance levels. If the price jumps above $155 resistance, it would be a signal to trade Walmart shares, and the next target could be around $160.

On the other side, if the price falls below $145, it would be a strong “sell” signal, and the next target could be around $140.

Summary

Walmart is scheduled to announce second-quarter earnings results on Tuesday, August 17th, after market close, and according to Bank of America, WMT should post strong earnings results. Bank of America maintains a buy rating on Walmart with a price target of $185, while Wells Fargo also upgraded the retail giant ahead of the second-quarter earnings report.

Where to buy right now

To invest simply and easily, users need a low-fee broker with a track record of reliability. The following brokers are highly rated, recognised worldwide, and safe to use:

1. Etoro, trusted by over 13m users worldwide. Register here >
2. Capital.com, simple, easy to use and regulated. Register here >