Should You Buy Walmart Stock Before Nov. 19? History Has a Clear Answer.

Walmart (WMT -2.22%) may not be considered a growth stock, but it has demonstrated solid performance in recent years. However, it recently faced challenges, with disappointing U.S. comparable sales growth and concerns about high inflation potentially disrupting shopping. The company is set to release its 2027 fiscal third-quarter earnings on Nov.

19. Should investors consider buying the stock in advance? Walmart operates the largest discount retail chain in the United States, with over 5,700 stores and nearly 11,000 worldwide. It tends to perform well during economic downturns as consumers seek affordable essentials. The company's extensive presence in most U.S. locations and a rapidly growing e-commerce platform give it an advantage under any circumstances.

U.S. comparable sales increased by a modest 2.6% in the second quarter (ended July 31), but overall sales grew impressively by 5.9%, and operating income rose by 29%. Market participants are more concerned about future performance rather than the current report. Management suggested that the slowdown might be due to customers struggling to cope with inflation.

The outcome of the Nov. 19 earnings report will likely impact the stock price, especially since Walmart stock is currently expensive, with a price-to-earnings ratio of around 45.

Despite the recent challenges, the stock has exhibited an intriguing pattern over the past four quarters. It has shown both upward and downward movements, sometimes rising after a good report and other times falling after a poor one. This suggests that there is no urgency to buy the stock before the earnings release. Long-term investors can feel confident purchasing the stock at any time.