Walmart, why was it down today? Is it likely to recover soon? Three months price prediction?

Walmart's recent performance and price trend: On November 14, 2024, Walmart's stock (WMT) experienced a decline of 1.20%, closing at $84.47. Despite this setback, the stock has shown a robust three-month performance with a significant increase of 23.03% from August 15, 2024, to November 14, 2024.

Analysis of the decline:

1. Market-wide impact: The decline in Walmart's stock price coincided with a broader market downturn, with the S&P 500 Index falling 0.60% and the Dow Jones Industrial Average dropping 0.47% on the same day.
2. Options market sentiment: Despite the market volatility, deep-pocketed investors have adopted a bullish approach towards Walmart, as indicated by significant options activity. This suggests that while the stock may experience short-term fluctuations, there is confidence in its long-term performance.
3. Financial performance: Walmart's financials show a net loss for the three months ended September 30, 2024, which could contribute to short-term market uncertainty. However, the company's earnings beat expectations in Q2 2024, with adjusted earnings per share (EPS) of $0.67, surpassing the consensus estimate.

Likelihood of recovery:

1. Analyst expectations: The consensus among analysts is positive, with a "Strong Buy" rating and an average price target of $86.43, indicating a potential upside from the current price.
2. Price target projections: Analysts have set short-term price targets ranging from $77.00 to $98.00, which suggests a range of potential recoveries depending on market conditions and company performance.

Three-month price prediction:
Considering the analysts' average price target of $86.43 and the current trading price of $84.47, there is a positive upside potential for Walmart's stock over the next three months. The bullish sentiment among investors, coupled with the expectation of modest earnings growth in Q3 2025, supports the likelihood of a stock price recovery.

In conclusion, while Walmart's stock experienced a temporary decline, the overall positive analyst sentiment and the company's strong market position suggest that it is likely to recover in the near term. The three-month price prediction indicates a potential for the stock to appreciate towards the $86.43 target, subject to market conditions and company performance.