Walmart: #PowerStocks Series Pick Of The Week (September 2024)

September seems to have started on the wrong note. The S&P 500 dropped more than 4%. Nasdaq dropped more than 5%. Nvidia, the darling of Wall Street and many investors fell close to 14%! On the other hand, this defensive sector rose - Consumer Staples. And this week's stock pick is part of the Consumer Staples sector. But before I share this week's #PowerStocks pick, shall we review last week's - Iron Mountain (IRM)?

Review Of Last Week's Pick Of The Week

Iron Mountain (IRM) was last week's #PowerStocks pick. It is a data center REIT that plays a critical role in the ongoing AI revolution. The rise of AI has led to a boom in its share price, rising more than 56% year-to-date. As shared, I was waiting for its share price to pull back to ~$109 and bounce. This has just happened, and I've given it a shoutout in my Telegram Channel.

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Shall we now analyze this week's stock pick: Walmart (WMT)?

Why Is Swing Trading Walmart (WMT) Worth It?

Source: stock.walmart.com/home/default.aspx

Walmart is a well-known household name for its economically priced groceries and daily essentials. Due to the re-emergence of recessionary concerns, this defensive stock got a boost while most stocks took a big hit. As the S&P 500 had risen a measly 1% in the past 3 months, Walmart's share price has experienced a stunning growth of 14.1%! That's a 14x return over the S&P 500! Although Walmart enjoys a massive market capitalization of more than $616b, its share price has proven to be able to shoot explosively, between 4% and 12.8% each time. Here's the best part. Its share price is retreating, providing an explosive swing trading opportunity for you and I. So, what's the game plan? Continue reading to get the details. P.S. What if I told you that you could drastically gain control over your emotions of fear and greed, and master the stock market in a short amount of time? My team and I have worked tirelessly to help you achieve results fast. Click on the banner below to claim your stock course for free (limited time) now!

Performance Of US Stock Market vs Walmart (WMT)

From the comparison chart above, can you tell that Walmart's share price is in a strong uptrend? Knowing this helps you note that you want to look for buying opportunities to profit from its share price. But before you do so, you'll want to compare the performance of its shares against the S&P 500. In the last 3 months, has the performance of Walmart's shares been stronger than the S&P 500? While the S&P 500 has risen a measly 1%, Walmart's share price has risen by more than 14%! What does this tell you? Walmart's shares are stronger and faster. Buying its shares for a swing trade will likely bring you a higher return. What else can you expect from its shares? Let's discover more about its shares in the next section.

How Explosive Is Walmart (WMT)?

If you were to buy the shares of Walmart tonight, how much can you expect to make based on past performance? Is this going to be worthwhile? In the past 11 months, Walmart's share price has exploded 9 times. Each of these explosive upmoves measured between 4% and 12.8%. For a defensive stock with a market capitalization of more than $616b, you can safely say that buying its shares is putting your trading capital to efficient use. Does this mean that you should buy its shares now?

Key Price Levels

To find out whether the time to buy its shares is here, let's uncover its key price levels. Yes, they are also known as support and resistance zones, where prices are likely to turn. Did you spot this support zone around $74? Great! Identifying the area around $74 as a support zone gives you a clear target to wait for. You guessed it. I'll wait for its share price to pull back to around $74 and bounce before I consider buying them for an explosive swing trade. Here's a pro tip: Instead of staring at your screen, you may want to set a price alert on your broker's platform to be notified so that you can spend precious time with your loved ones. Finally, this is for educational purposes. Please perform your due diligence. All images are taken from pexels.com, pixabay.com, sectorspdrs.com, tradingview.com, and unsplash.com, unless otherwise mentioned.

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The stock market is full of traps laid out by professional traders. Many new traders are often left confused by conflicting signs and signals. Worse still, ~80% of traders lose money. This is because trading isn't just about skill alone. It includes the mastery of your emotions. But what if I told you that you could quickly gain control over your emotions of fear and greed and master the stock market? My team and I have worked tirelessly to help you achieve results fast. Click on the banner below to claim your stock course for free (limited time) now!