Walmart is a consumer staple stock which would typically see an influx of bargain hungry consumers in the face of a recession.
With Walmart’s earnings due out this week will the company see reasons for optimism ahead? Will the recent falls in US inflationary pressure provide some prospect of relief for the low cost retailer?
Is the US recession delayed a few months and is Walmart’s main attraction to consumers still to come?
One seasonal aspect to note for Walmart is that the stock tends to see a strong March. Look at the stock over the last 25 years and note how the period between March 01 and April 07 is very strong.
The average return is just under 5% and the win percentage is 80%. Is this now the time to buy? Would an earnings dip prove a perfect dip buying opportunity?
Major Trade Risks:
The major trade risk here is that there is some very negative news out for Walmart
Remember, don’t just trade it, but Seasonax it!