Fundamental outlook
The August 21, 2025 earnings‑call notice signals that Walmart (WMT) will report its Q2 results next week. While the release contains no figures, the “Sentiment: 10” rating (on a 1‑10 scale) indicates a strongly positive market view. Consensus analyst estimates for Q2 have been relatively modest – most forecasts peg net sales growth at 3‑4 % YoY and earnings per share (EPS) at $0.71‑$0.73, reflecting expectations of a “steady‑but‑flat” quarter after the 2024‑25 holiday season.
Given Walmart’s recent same‑store sales acceleration (≈5 % in the prior quarter), robust e‑commerce growth (double‑digit % in the “Walmart.com” segment), and improved margin from supply‑chain efficiencies, the company is positioned to beat both top‑line and bottom‑line expectations. A modest beat—e.g., net sales up ~5 % and EPS around $0.76—would still be in line with the bullish sentiment and could push the stock above the $170 – $175 range.
Trading implications
- If results exceed consensus (e.g., >5 % sales growth, EPS > $0.75), the stock could rally toward the $175‑$180 resistance zone. A breakout above $175, especially on strong volume, would be a bullish signal for a short‑to‑medium‑term upside.
- If results merely meet expectations, the price is likely to hold near the $165‑$170 support zone, with the market pricing in the “steady‑growth” narrative.
- If the beat is weaker than anticipated (e.g., sales growth <3 % or EPS < $0.70), the stock may test the $160‑$162 support level, prompting a defensive stance or a stop‑loss for long positions.
Actionable take‑away: Keep a tight watch on the earnings release. A clear beat of consensus estimates should be met with a long position or a call‑option play targeting the $175‑$180 resistance. Conversely, a miss or merely in‑line results warrants tightening stops near $165 or considering a short‑term put if the price slides toward $160. Technicals remain supportive of a breakout if the earnings narrative stays positive.