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    Analytical review for Wal-Mart Stores Inc's shares on 24.03.2016

    Wal-Mart Stores Inc., #WMT [NYSE]
    Retail services, USA

    Financial performance:

    Index –DJIA, S&P 500;
    Beta – 0.22;
    Capitalization - 205.31 В;
    Assets profitability - 7.50%;
    Revenue 15.09B;
    Average volume – 11.98 М;
    P/E - 13.76;
    ATR – 1.68.

    Analytical review:

    • The company's shares have grown by over 7% since mid-February. The quotes are expected to rise further.
    • According to the latest report, the company's revenue dropped by 1.4% to 129.7 billion USD. The net profit fell by 8% (from 4.97 billion USD to 4.57 billion USD) on account of the USD's strong pressure and decrease in the world economy's growth rates.
    • On 18 March, Friday, the company announced that it was planning to build a milk processing plant in Indiana and stop cooperating with some US product suppliers. The construction of the plant will allow the company to cut expenses and better its positions against the main competitors (Kroger and H-E-B).
    • Also, the retailer has been investing in the development of e-commerce. A launch of the Walmart Pay payment system is scheduled for the year 2016.The system will speed up the client service.
    • The majority of large investment funds and banks (UBS, RBC Capital, Barclays) forecast a rise in the price of shares of up to 80 USD.

    Summary:

    • In spite of the latest negative report, the company's got quite a considerable growth potential. The construction of a new plant in Indiana and development of e-commerce will improve the company's competitiveness against other product retailers. Large investment funds expect a positive share price evolution.
    • Thus, we expect that the company's quotes will be rising in the nearest future.

    Trading tips for Wal-Mart Stores Inc.'s CFDs

    Medium-term trading:
    the issuer is currently trading at a resistance level of 67.95 USD. Once this level is broken and tested, and relevant confirming signals appear (PriceAction patterns, for example), we recommend searching for market entry points to open long positions. Risk per trade: no more than 2% of equity. Stop order shall be placed a bit below the signal line. We recommend that prospective profits should be fixed partly at the levels of 70.50 USD, 72.00 USD and 74.00 USD, with Trailing Stop applied.


    Short-term trading: On the 15M time-frame, the issuer is currently trading between the local support and resistance levels of 67.25/68.30USD. We advise you to search for market entry points once these levels are broken and tested. Positions shall be opened in the direction of the signal line and the nearest support/resistance level. Risk per trade: no more than 3% of equity. Stop Order shall be placed a bit above/below the signal line. Prospective profits shall be fixed partly, at 50%, 30%, and 20% of a prospective fluctuation, with Trailing Stop applied.



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