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Walmart: Get Out Before The Correction
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Walmart: Get Out Before The Correction

Seeking Alpha·Cash Flow Venue·17 days ago
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Home Earnings Analysis Consumer Staples Analysis Summary WMT is at risk of a correction. Investors should consider trimming. Consensus expects Q1 revenue growth of 6.6%, but WMT's own guidance is a more modest 3.5-4.5% on a constant currency basis. Potential FX benefits could lift reported sales growth to around 6%, yet operating margin improvements are expected to be minor. Despite impressive scale and earnings, WMT's growth outlook and valuation do not warrant a buy or hold at these levels. In fact, a low single-digit growth fails to justify a 45x P/E ratio while there are many players growing faster, or cheaper, or both. bgwalker/iStock Unreleased via Getty Images I know that many of Walmart Inc.'s ( WMT ) shareholders won't like my opinion. But it's fine. Everyone has a right to own opinions. But I'm here to reiterate my strong sell rating for Walmart.…

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