Walmart (NYSE:WMT) needs no introduction; the company is the largest retailer in the world by revenue. But Walmart’s size makes it difficult to grow. With the rise of e-commerce and membership-only retailers, Walmart’s store count has decreased by 1,000 locations since 2018. Over the past 10 years, the company’s earnings per share grew at an annualized rate of just 3.5%. This begs the question: why is Walmart the most expensive it’s been in 20 years? Walmart’s P/E ratio could get cut in half. Thus, I’m bearish on Walmart stock.
Walmart’s Q1 Earnings Release – Not What It Seems
In Walmart’s Q1 earnings release, the company reported net income of $5.10 billion, up from $1.67 billion in Q1 of the prior fiscal year. While this initially looked very impressive and caused the stock to surge, it’s not what it seems. Let me explain.
Walmart has been losing a…
