Walmart (WMT) Stock Closed Up, Morgan Stanley: End of Rally Near

Morgan Stanley analysts predict that Walmart (WMT) stock has reached the end of its upward trajectory.
By Rachel Aldrich ,

NEW YORK (TheStreet) -- Shares of Walmart  (WMT) - Get Report  closed up 0.35% to $74.06 this afternoon despite the fact that analysts at Morgan Stanley released a bearish outlook on the company's next few months.

Walmart stock is up 21% this year, outperforming the market by 13% over the past two months. Morgan Stanley attributes this outperformance to the company "meeting numbers against low expectations," the firm said in a note cited by Barron's.

Analysts said that the stock represents somewhat of a safe-haven trade amidst the recent market and global volatility.

"Walmart should be trading at a discount to the market given its lackluster earnings growth," the firm said.

The safe-haven stock's upward trajectory could be spurred in the upcoming months due to greater global instability and positive earnings revisions. However, Morgan Stanley added that it does not see "much upside to comps/earnings."

Separately, TheStreet Ratings rated this stock as a "buy" with a ratings score of B.

The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and notable return on equity. TheStreet Ratings feels its strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

You can view the full analysis from the report here: WMT

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. 

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