Walmart: Price Only Partly Justified

Summary:

  • Walmart has maintained healthy earnings despite high inflation and a turbulent macroeconomic environment.
  • The company’s stock price has continued to rise – as interest rates should raise investors’ required return, WMT may be overpriced according to a discounted cash flow model.
  • Insiders have sold significant amounts of Walmart stock, indicating a potential risk for investors; I have a sell-rating for the stock.

Walmart in Pittsburgh Suburb

bgwalker

Walmart (NYSE:WMT), the well-known supermarket chain based in the United States, has maintained a healthy earnings level through high food inflation and a turbulent macroeconomic environment. At $161.40 a share, though, I believe Walmart is a quite expensive pick for investors, which is why


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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