The G20 summit took place in Bali, Indonesia, on November 2022…
Trading earnings: Walmart and HP
Information is not investment advice
The earnings season continues in the United States. Every week we tell you which large American companies are going to release their earnings reports. You can trade stocks of each of these companies with FBS. To learn more, please check this info.
Date: February 19
EPS forecast: $1.33
Revenue forecast: $138.81B
The world’s biggest retailer will report its Q4 results on Tuesday. Investors are eager to find out how Walmart performed in the battle for customers during the Christmas holiday season.
According to the official data, US retail sales declined in December by the most since 2009. Yet, Walmart’s sales and revenue growth are expected to be higher than a year ago. The grocery business may have given it a boost. However, its profit margins may be at the weakest in many years. The rising transport and labor costs can account for that. In addition, the company’s financial statement will also show how much Walmart pays to develop online sales in order not to fall behind its main competitor Amazon.
All in all, Walmart’s sales act as an indicator of the health of the entire US consumer sector. As a result, this earnings report can have an impact not only on the value of Walmart stock but also on the exchange rate of the USD.
Walmart stock was down by 3.5% in 2018. The start of this year was more positive. The price went above January highs and approached 100.00. According to 32 analysts surveyed by FactSet, the stock’s average target price is 106.57. Notice that Walmart has beaten FactSet EPS expectations in 13 out of the last 14 quarters. Technically, above 100.44, there’s resistance line in the 104.70 area. Support is around 93.00.
Date: February 21
EPS forecast: $0.35
Revenue forecast: $7.63B
According to expectations, HP will release flat earnings compared to the year-ago quarter. The revenue is also expected to show zero growth compared with the same quarter of the previous year. Notice, however, that over the last four quarters, the company has beaten consensus EPS estimates four times.
After a turbulent year, the stock returned above the levels of early 2018. It has been steadily pushing up from the minimum of 19.20 set in December. The price has reached resistance of 50% Fibo and 200-day SMA (23.40). Rise above this level is needed to open the way up to 24.00, 24.40 and 24.80. Support is at 22.85 and 22.35.
The deafening news shocked the whole world yesterday: the British Queen Elizabeth II died peacefully at the age of 96…
After months of pressure from the White House, Saudi Arabia relented and agreed with other OPEC+ members to increase production.
This week, there are a few high-probability trade ideas I'd like to recommend to you. Trading these setups, be sure to implement a proper risk management approach.
On Thursday, the 2nd of February, the Bank of England will publish its report concerning interest rates and inflation data for the Eurozone. Professionals and investors anticipate that Andrew Bailey’s lead team of policy makers will likely raise interest rates to 4%; the highest in over a decade, for the tenth time in a row.
The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates? Recall that the Federal Open Market Committee had previously ended the year 2022 with a 50bps hike, and an indication from Powell, the committee chairman, that the Fed could consider raising interest rates by 75bps in the course of the year 2023.