Wal-Mart (WMT) missed its revenue expectations for the quarter of $114.9 billion when it reported revenues of $113.9 billion. And, of course, the market did not like it. Stock is off 4%+. WMT, also, lowered its EPS from $4.94 to a lower range of $4.88.
My immediate assessment for WMT is another 10% correction in price to $61 from its current level of $68. As the bear case takes hold, WMT looks like a $53 stock, or 23% from the current levels. Eventually, over the next couple of years, WMT should take out its February 2009 low at $42, which is a decline of approximately 40% from its current price of $68. And, it would not surprise me to see WMT trading below $35. (See the following chart.)
My immediate assessment for WMT is another 10% correction in price to $61 from its current level of $68. As the bear case takes hold, WMT looks like a $53 stock, or 23% from the current levels. Eventually, over the next couple of years, WMT should take out its February 2009 low at $42, which is a decline of approximately 40% from its current price of $68. And, it would not surprise me to see WMT trading below $35. (See the following chart.)
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