Should You Buy Walmart Stock Before Feb. 19?

On Feb. 19, Walmart (NASDAQ: WMT), the world's largest retailer, reports its fiscal fourth-quarter and full-year earnings, and investors whitethorn beryllium wondering if the banal is simply a bargain earlier the report.

It's existent that a banal whitethorn popular aft net are released, peculiarly if numbers bushed expectations. On the different hand, a banal tin suffer worth if the study oregon outlook disappoints investors.

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Of course, investors should look beyond the adjacent net study erstwhile assessing a stock, but buying conscionable earlier a catalyst tin beryllium a bully strategy. However, successful the lawsuit of Walmart stock, which has been connected a tear, it whitethorn not beryllium the close move. Let's analyse wherefore investors whitethorn privation to clasp disconnected connected buying shares of Walmart.

Walmart banal has been connected a teardrop arsenic of late, rising astir 20% year-to-date to a split-adjusted all-time high. Over the past 12 months it has gained astir 29%.

In caller days, the banal has been nudged higher by upgrades from respective analysts who raised terms targets. Analysts astatine Oppenheimer noted expectations for a beardown fourth-quarter vacation income period, expecting income to travel successful astatine the precocious extremity of Walmart's projected maturation scope of 3.75% to 4.75%.

Walmart's occurrence implicit the past mates of years has been based connected its pivot to scope a broader clientele. It has traditionally been a discount retailer catering to budget-conscious consumers, which has allowed it to execute good successful downturns arsenic radical look for amended deals.

While maintaining its accepted lawsuit base, it has successfully attracted higher-income shoppers with the convenience of online and store pick-up offerings, modernized stores, and a broader enactment of brands, among different changes. That has allowed it to devour into the nett and marketplace stock of big-box rival Target, which has seen year-over-year net declines implicit the past year.

Earlier this month, Walmart reached a $1 trillion marketplace cap. It is conscionable the 12th institution to scope that milestone. In summation to beefing up its business, it has benefited from investors' rotation distant from overvalued tech stocks into user staples and much all-weather stocks.

However, this has each contributed to Walmart banal itself being overvalued, trading astatine 45 times earnings. That is the highest it's been since 2021.