Trouble may be in store for Walmart — a stock which has been outperforming the major market indexes. According to technician Carter Worth, the charts suggest the stock is on the cusp of a major rollback. “Walmart has been a standout performer since 2022… [The stock] is back to a difficult level where overhead supply comes into play,” the Worth Charting founder and CEO said in a research note out last Thursday. “We’re sellers here.” Worth sees particular trouble ahead for the stock at $140 level. He notes the big box retailer’s stock “made an important intermediate low” last June 16. Shares eventually resumed climbing and are now up more than 24% since then. During a ” Fast Money ” discussion on Worth’s call, trader Tim Seymour delivered his strategy on Walmart. “I’m long Walmart, and I have been selling upside calls around $160,” he said on Thursday’s show. “I’ve been called away on some a little bit lower.” Trader Karen Finerman appears wary of the stock’s direction. “The P/E is high-ish, but it’s actually not quite as high as it seems because they’ve been spending, spending, spending,” she said. “They could curtail that if they want, but it’s sort of no man’s land to me.” Walmart made news last week. It announced plans to abruptly close four Chicago stores due to underperformance. Plus, new government data out Friday showed the macro picture for retailers is deteriorating. Retail sales recorded a 1% drop in March — a bigger drop than Wall Street was expecting. Retail sales excluding automobiles saw the worst drop since December 2021. Walmart shares fell almost 2% last week, but they’re up about 5% so far this year. The company is set to release its first quarter earnings on May 18.
