Walmart Stock Has Been Sluggish This Year. Should You Buy it Before It Reports Earnings on Aug. 20?
It's up only 4% year to date.
Walmart's stock has been relatively stagnant this year. The company, which has been raising its dividend annually for 53 consecutive years, was previously outperforming the market due to its perceived safety and reliability. However, this positive trend abruptly changed earlier this year when management expressed concerns that the momentum may be waning.
CFO John Rainey highlighted that budget-conscious lower-income consumers might be becoming more financially strained and navigating potential distress. He also noted that if oil prices continue to rise, there could be additional pressure in the upcoming quarters. Rainey pointed out that while oil prices remain elevated from pre-war levels, they are still lower than they were during the time when management made their comments, suggesting a potential improvement.
Given these developments, there may be an opportunity to consider buying Walmart stock before the company reports its earnings on August 20.
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