Walmart Inc. (NYSE:WMT) reaffirmed the support level of $135 before announcing annual results. The valuation coincided with a sector-wide trend affecting consumer stocks as the markets adjusted to the developing crisis between Russia and Ukraine and concerns over the inflation rate.
Analysts, however, remain bullish as the company’s results indicate a 10.1% growth in EPS to $1.53. Following the results, the stock jumped from the $135 support and traded at $137 at press time.
Already, Walmart had a good week, with analysts adjusting the estimations of the company’s EPS ratios upwards in anticipation of better performance results. The expected EPS was adjusted from $1.39 to $1.50 on the back of growing demand.
The results show adjusted EPS at $1.53 on the back of divestitures in the UK, Japan, and Argentina. Unadjusted EPS stands at $1.28. The company’s share performance is expected to trend upwards as the market absorbs news of the performance. Going forward, inflation will be Walmart’s key concern.
Walmart reaffirms $135 support after a pre-market decline
Source – TradingView
Technically, Walmart has been trading within a range since October. The bottom of the range was at the $135 support, while the top was at the $150 resistance. With the strong quarterly results, $135 is likely to hold, opening short-term trades within the range. From the weekly chart above, the price is already rebounding from the support, with a key target at the $150 resistance.
WMT is projected to maintain a bullish trend from the $135 support level. Analyst ratings remain bullish on the company’s financial performance. Annual results show 10.1% growth in EPS mainly due to divestitures. The share price will face resistance at $150.
The post Walmart reports higher than projected EPS. Will the $135 support hold? appeared first on Invezz.