Walmart Stock Alert: Big Price Move Expected Soon

Core Viewpoint - Walmart's stock is poised for significant movement due to strong underlying factors, market positioning, and positive analyst sentiment ahead of the FQ1 2026 earnings report [1] Financial Performance - Walmart's Q1 results showed a 2.5% revenue increase, driven by digital sales, U.S. comps, and Sam's Club [5] - U.S. Walmart sales grew by 3.2% on a 4.5% comp, while international sales remained flat [6] - Adjusted EPS for the quarter was $0.61, reflecting a 1.6% growth rate compared to the previous year [7] - Operating cash flow increased by 25%, and free cash flow turned positive at $0.4 billion, a significant improvement from last year's negative figure [8] Guidance and Market Sentiment - Walmart reaffirmed its revenue growth forecast of 3.5% for the year, with expectations of stronger performance in the first half [4] - Analysts maintain a bullish sentiment, with a price target of $103.94, indicating an 8.61% upside potential [5] - The company’s capital return strategy, including dividends and share buybacks, supports positive market sentiment [9] Dividend and Capital Management - Walmart has a dividend yield of 0.98% and a history of increasing dividends for 53 years, with a payout ratio of 39% [9] - The company raised some cash through debt in Q1, but the overall cash balance remains stable, and leverage is low [10] Stock Price Action - Following the earnings release, Walmart's stock experienced mixed price action, indicating potential near-term volatility [11] - Critical support is identified at the 30-day EMA near $94.50, while resistance is near $100, with potential for a 10% to 20% upswing if surpassed [12]