Walmart may very well be about to hit a wall.The world's largest brick-and-mortar retailer is scheduled to report its fiscal third-quarter earnings
Walmart may very well be about to hit a wall.
The world’s largest brick-and-mortar retailer is scheduled to report its fiscal third-quarter earnings on Thursday earlier than the opening bell, and Wall Road consultants are watching carefully for any phrase on China, the Amazon.com rivalry or the state of the U.S. shopper.
However not everybody’s satisfied it will proceed its successful earnings streak.
“This can be a nice firm, no query. I am undecided it is an amazing inventory,” Craig Johnson, senior technical analysis analyst at Piper Jaffray, instructed CNBC’s “Trading Nation” on Wednesday.
“You have a look at conventional valuation metrics [for Walmart], and also you’re principally at all-time highs for these metrics,” Johnson stated, pointing to a long-term chart of the inventory.
“You have a look at this chart, and the inventory’s at all-time new highs, however we’re beginning to see some weak spot in a number of the shorter-term momentum indicators,” the technical analyst stated. “There’s plenty of information priced into this inventory, and I feel it is a inventory that is most likely going to need to see a correction again towards and retest its rising 200-day transferring common round [$]109, 110, from our perspective.”
On condition that considerably bearish setup, Johnson wasn’t a purchaser of Walmart heading into its Thursday morning report.
“I’d be trimming this identify heading into the earnings print, on the lookout for a chance to be shopping for it…