Investors are keeping a close eye on Walmart’s upcoming third-quarter earnings report as they look for clues about the impact of inflation on consumer spending. The retail giant’s stock price dipped slightly on Monday before the earnings release. Overall retail sales in the US rose slightly more than expected in October, but it remains to be seen how inflation is affecting individual consumers’ purchasing habits. Analysts predict Walmart will report earnings per share of $0.53 on revenue of $167.69 billion.
Despite the economic uncertainty, Walmart’s stock is on track for its best year in two decades. The company seems to be in a good position to attract both budget-conscious and higher-income shoppers. They are achieving this by offering competitive prices on groceries and other essentials while also expanding their online marketplace and advertising divisions, which generate higher profit margins. Analysts are cautiously optimistic about the upcoming earnings report and believe Walmart might raise its guidance for the rest of the year.
The overall sentiment among retail investors on Stocktwits is bullish on Walmart’s stock. With high message volume and a positive sentiment score, many investors seem to be expecting a positive earnings report that could lead to a stock price rally.