StevenStarr73
Walmart (NYSE:WMT) was involved in a public spat with President Donald Trump this week after he told the retailer to "eat the tariffs." I will dive into the company's performance in this article and discuss why I believe the
Walmart: A Good Time To Sell As It Starts The Tariff Diet
Summary
- Walmart's stock has surged since the pandemic, but underlying revenue growth and margins are weakening, raising concerns about sustainability.
- Recent tariff pressures and management's uncertainty about price elasticity add risk to Walmart's profitability and future performance.
- Valuation appears stretched, with price/sales ratios doubling despite only modest sales per share growth, suggesting potential for a stock correction.
- Given these dynamics, I believe Walmart has peaked and recommend divesting at current levels, with better entry opportunities likely ahead.
I am an active trader in stocks, FX, crypto, and commodities with over 15 years of market experience. I hold a master's degree in finance and mix microeconomic studies of company financials with a big-picture macroeconomic view.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.