Walmart (NASDAQ:WMT) stock has soared and hit a crucial resistance as traders position for the upcoming quarterly earnings. It closed at $131.45 last week, a few points below the important point at $133.90.
Walmart Stock Faces Valuation Headwinds Ahead of Earnings
WMT shares have done well over time, rising by 180% in the last five years and by 40% in the last 12 months. This surge happened as the company continued to grow its market share in the retail sector in the US.
It has also made it one of the most expensive retailers to own in Wall Street. Data shows that the company trades at a price-to-earnings ratio of 45, higher than its five-year average of 31.
This metric is also much higher than the retail sector, with the SPDR S&P Retail ETF (NYSE:XRT) having a multiple of 13.80. It is also higher than the S&P 500 Index average of 23.
Most notably, Walmart is now more expensive than high-flying technology names. The Nasdaq 100 Index has a multiple of …
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