$WMT

Implied claim • strong conviction • basis: growth vs multiple

The oil prices being stretched even more is going to make it so I have less money in my wallet. You're going to see significant pull pullbacks in consumer discretionary spending. People are going to start really re-evaluating like, do I really need to be buying that stuff? Walmart dominates though in those consumer staples. So, you're going to see more people flocking to Walmart even than there was before.

Explicit claim • strong conviction • basis: multiple relative

Walmart's price is 103.70. That earnings per share is a massive, a monumental, a colossal $2.88. So, that gives you a P/E ratio of 36x.

Implied claim • moderate conviction • basis: market mispricing

But when a retail titan posts stellar numbers and still gets heavily punished by Wall Street, it usually means investors have just stopped caring about what the company did yesterday. So they're looking ahead. Exactly. They are entirely fixated on the underlying machinery of how the company intends to make money tomorrow.

Explicit claim • strong conviction • basis: multiple relative

Walmart is currently trading at a forward-looking P ratio of 35.86. And that's after the stock has fallen off 22% from its all-time high and sold off 9.15% in 1 day following its latest earnings report. This is Walmart's worst one-day loss in four years. Yet, the stock still might be expensive. It makes highly valued tech stocks like Nvidia look cheap by comparison.