Walmart (WMT) stock price is doing well this year, and is one of the best-performing companies in the United States. It has jumped by 73% this year, bringing its market cap to over $733 billion, making it substantially bigger than companies like Costco and Home Depot. 

Walmart stock helped by strong growth

The WMT share price surge has been propelled by its strong revenue over the years and the fact that it is gaining market share in other sectors. 

Walmart’s annual revenue has jumped from over $523 billion in 2019 to over $648 billion in the last financial year. 

This growth happened because Walmart is often seen as an all-weather company because of its strategy. In most periods, the company’s products are often cheaper than other retailers. Also, Walmart has a wide variety of products, a great rewards program, and has locations across the country. 

Walmart has also been helped by its investments in e-commerce, which has helped make it become available to most people. 

Most importantly, it has become a more profitable company. Just last year, its net profit jumped to over $15.5 billion. It has used these funds to pay its shareholders dividends, which has made it a dividend king after making payouts for 50 years. Walmart has room to grow its dividends because it has a payout ratio of just 33%.

Read more: Is it too late to invest in Walmart stock as it hits a record high? here’s what experts are saying

In addition to dividends, the company has been slashing its outstanding shares. Its total outstanding shares fell from 8.50 billion in 2020 to 8.03 billion, a trend that will continue in the near term.

Walmart has continued to gain market share across other industries. For example, analysts believe that the company is partly to blame for the crisis going on in firms like Walgreens Boots Alliance and CVS Health.

The most recent financial results showed that Walmart’s revenue rose by 5.5% to over $169 billion, higher than what analysts were expecting. Its margins rose by 21 basis points, while its global e-commerce volume jumped by 27%.

Walmart has also become a major player in the advertising industry, where its customers market on its stores and website. 

Can WMT’s market cap hit $1 trillion?

The $1 trillion club has grown rapidly in the past few months, with the number of firms with that valuation jumping to 9 or 10, with Bitcoin included. 

Walmart is the 12th biggest company globally with a market cap of $733 billion, meaning that its stock needs to rise by 27% to hit that valuation. This means that the WMT share price needs to get to $115.95. 

Such a move is possible if the company continues delivering strong results as it has done in the past few years. However, the biggest concern for Walmart has always been its valuation since the firm makes a net profit of less than $20 billion a year. If it averages $20 billion a year, its total profit in the next 20 years will be about $400 billion.

These numbers mean that Walmart has a forward P/E ratio of 36, meaning that all factors were constant, it would take these years to break even if you bought it. It also trades at a forward EV-to-EBITDA multiple of 26, higher than the industry median of 15. 

Read more: Why is Target losing to Walmart, and will it ever catch up?

Walmart stock price analysis

The weekly chart shows that the WMT share price has been in a strong bull run in the past decades. It has recently crossed the important resistance level at $90 as buyers target the key resistance point at $100. 

The stock remains much higher than the 50-week and 200-week moving averages. Also, the Relative Strength Index (RSI) and the Stochastic Oscillator have moved to the extremely overbought level.

Therefore, the stock will likely continue rising as bulls target the key resistance level at $115, when will it gets to a $1 trillion company. However, there is a risk that the stock could suffer a slight retreat as investors start to take profits. In the long term, though, the stock will continue doing well because of its role in the US.

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The SPDR Dow Jones Industrial Average (DIA) ETF continued charging ahead this week, reaching its highest level on record. The fund, which tracks 30 big companies in the US, jumped to a high of $448.9 on Tuesday, bringing the year-to-date gains to almost 22%.

Catalysts for the DIA ETF

The Dow Jones Index has soared this year, helped by the rising hopes that the Federal Reserve will continue cutting interest rates in the coming months.

It has already slashed rates by 0.75% this year, and analysts expect it to deliver several more in 2025. Minutes released on Tuesday showed that officials favor a more gradual pace of cuts going forward, which is also a good thing for the market.

The Dow Jones and other stock indices do well when the Federal Reserve is cutting interest rates. In most cases, these rate cuts usually lead to a rotation from fixed-income to the relatively risky stock market. 

The DIA ETF has also jumped because of the year’s strong corporate earnings. Data compiled by FactSet showed that 95% of all companies in the S&P 500 index have published their Q3 results. Of these firms, their earnings growth was about 5.8%, marking the fifth consecutive quarter of earnings growth. 

Additionally, the Dow Jones index has benefited from the recent entry of NVIDIA, the biggest company in the world. NVIDIA has been one of the best-performing companies in the United States in the past few years. 

Further, analysts now believe that Donald Trump will be a good president for the market. He has already appointed Scott Bessent as the next Treasury Secretary. Bessent, a billionaire is seen as a more market friendly person for the role.

Top Dow Jones companies in 2023

NVIDIA, which has just entered the index, is the best performer as its stock jumped by over 176% this year. Its rally has been propelled by the artificial intelligence craze that has led to a substantial demand for its products.

The most recent NVIDIA earnings showed that the company made over $37 billion in the last quarter, a record high. These numbers mean that it has now generated over $80 billion in the first nine months of the year, a trend that may continue.

NVIDIA has a large market share that is also supported by its Cuda software which helps to reconfigure GPUs to be compatible in handling other tasks.

Walmart, the biggest American retailer, has been the second-best performer in the index as it jumped by 73% this year. The company has benefited from the resilient demand for its products, which are often seen as being fairly priced. It has also expanded its business and gained market share in areas like health and sports. 

American Express stock price has jumped by 63% this year, while Goldman Sachs, JPMorgan, 3M, IBM, Travelers, Caterpillar, Amazon, and Salesforce have soared by over 35% this year. 

On the other hand, the top laggards in the DIA ETF are companies like Boeing, Nike, Merck & Company, and Amgen. 

SPDR Dow Jones ETF analysis

DIA ETF chart by TradingView

The daily chart shows that the DIA ETF stock has been in a strong bullish trend in the past few years. It recently crossed the important level at $444.60, its highest level on November 11. By moving above that level, it has invalidated the double-top pattern.

The ETF has moved above the 50-day and 100-day moving averages, a bullish sign. It has moved to the overshoot level of the Murrey Math Lines and is quickly approaching the extreme overshoot. 

The DIA ETF’s Relative Strength Index (RSI) has moved to the overbought level at 70. Therefore, the fund will likely continue rising as bulls target the next key resistance point at the extreme overshoot of $453. As I warned on the Russell 2000 and S&P 500 index on Tuesday, a short-term reversal cannot be ruled out. 

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Robinhood stock price has been in a strong bull run since 2023, helped by the strong performance of American equities and cryptocurrencies. The HOOD share price peaked at $39.70, its highest level since October 2021, giving it a market cap of over $33 billion.

HOOD business is doing well

Robinhood, a top disruptor in the financial services industry, has been in a strong growth trajectory, helped by its innovation and popularity among users. 

Its annual sales have jumped from $277.5 million in 2019 to over $1.865 billion in 2023. This growth trajectory has continued this year, bringing its trailing twelve-month (TTM) revenue to over $2.4 billion. 

Robinhood’s recent success is mostly because of the ongoing surge in American equities, which has pushed indices like the Dow Jones and S&P 500 to their all-time high. It has also benefited from the ongoing crypto bull run that has pushed Bitcoin above $90,000.

Historically, exchanges and brokers do well when the market is rising since it attracts more investors and traders. For example, data shows that most crypto exchanges have seen higher revenues this year as many investors have moved back to the crypto market.

Robinhood has seen the number of customers on its platform rise sharply in the past few months. Funded customers rose to over 24.3 million in the last quarter, up from 23.3 million in the same period last year. 

The company’s subscription package is also seeing strong uptake by consumers. Users have jumped to 2.19 million, up from 1.33 million in the same period last year. 

The recent results also show that Robinhood’s assets under management (AUM) has jumped to $152 million, up from $87 million in the third quarter of 2023. This is a sign that customers are getting more comfortable adding funds to its platform, a situation that will continue in the coming years.

Robinhood stock boosted by strong growth

The most recent financial results showed that its revenue jumped by 36% in Q3 to over $637 million as the number of customers and assets jumped.

For starters, Robinhood makes money through the Payment for Order Flow (PFOF), where it receives rebates from market makers for all orders it routes through it. These market makers are often seen as wholesalers in the financial industry and include companies like Virtu and Citadel.

Its transaction revenue rose by 72% to $319 million, while its net interest and other revenues jumped to $274 million and $44 million. Most importantly, Robinhood has become a highly profitable company as its net income jumped to $150 million in the last quarter. 

Robinhood has done more things to boost its business. It became the first broker to offer 24-hours of stock trading in the US. It has also expanded its business in the UK, and its goal is to move to other countries. 

The company also acquired Bitstamp, a leading player in the crypto industry, in a transaction that will close in 2025. This deal will make it one of the top players in the crypto industry by offering additional services outside of its main application. 

It will also be a good way to expand its business around the world since Bitstamp has licenses in over 50 countries. 

Stock analysts believe that Robinhood has more room to grow as it continues to challenge other top companies like Schwab and TD Ameritrade. Its innovation has also helped it fend off competition from the likes of eToro, Webull, SoFi Invest, Public, and MooMoo. 

These analysts believe that Robinhood’s revenue for the current quarter will be $654 million, a 39% increase from the same period last year. It will then make $677 million next quarter, while its annual revenue this year will be $2.61 billion. 

Robinhood’s profitability will keep rising, moving from 49 cents last year to $1.01 this year and $1.04 next year. 

As such, while Robinhood is an overvalued company, analysts believe that it is justified because of its strong growth. HOOD trades at a trailing twelve-month price-to-earnings of 62, much higher than other companies. Its enterprise value to revenue stands at 11.8, while its EV to EBITDA is 47.35.

Robinhood stock price analysis

The weekly chart shows that the HOOD share price has been in a strong uptrend in the past few years. It has moved to the 38.2% Fibonacci Retracement point at $36.73. It has moved above the 50-week moving average.

The Relative Strength Index (RSI) and the MACD indicators have continued rising. Therefore, there are signs that the stock is forming a cup and handle pattern, whose upper side is at $85.03.

This price action means that the stock will rise by 133% to an all-time high. If this happens, its market cap will get to over $78 billion.

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Texas Pacific Land (TPL) stock price has gone parabolic this year, helped by its strong performance and robust insider transactions. It jumped to a record high of $1,767 this week, bringing the year-to-date gains to about 200%, making it one of the best-performing companies in the United States.

TPL stock jumps amid insider purchases

Data shows that the Texas Pacific Land insiders have been aggressively buying the company’s shares in the past few years.

According to Barchart, these insiders have bought 702 shares in the past three months. At the current price, these stocks are now worth over $1 million. Cumulatively, they have bought 2,913 shares currently worth over $4.5 million in the last 12 months.

Murray Stahl, a key insider and the Chairman and CEO of Horizon Kinetics has been one of the biggest buyers of the stock. Chris Steddum and Stephanie Buffington, the CFO and CAO have also continued to buy the shares.

Insider transactions are some of the top leading indicators that investors look at when making decisions. In most periods, stocks tend to do well when insiders are buying the shares since they have a clearer picture about what is going on. 

Texas Pacific Land is doing well

The ongoing insider transactions are happening because the company is doing relatively well. For starters, TPL is a leading company that owns thousands of acres of land, mostly in Texas. 

It owns 868,000 acres of land in Western Texas at the Permian Basin. The company also owns a nonparticipating perpetual oil and gas royalty interest under 195,000 acres of land.

TPL makes money by providing its land to companies in the oil and gas industry. As a result, while it does not produce oil and gas directly, the company benefits when the sector is doing well. 

For example, it receives a fee during the initial development phase of wells. This fee is typically for its land and other products it sells like caliche. After that, the company makes money during the drilling and completion by providing water and fees for the land.

Additionally, Texas Pacific Land makes money during production through its rights and for providing saltwater disposal. The company also receives fees from other players in the energy sector like pipelines and utility providers. 

Its oil and gas royalties are the biggest part of its business followed by easements and land sales. In addition to this, it benefits from the appreciation of its land resources over time.

Texas Pacific Land’s business has done fairly well in the past few years as its revenues have jumped from $302 million in 2020 to $631 million in the last financial year. Its net income rose to almost $450 million. 

The most recent financial results showed that the company acquired mineral interest on about 4,106 net royalty acres in the Delaware Basin for $120 million. It had royalty oil production worth 28.3k barrels of oil equivalent a day, bringing its net income to $106.6 million. 

The company also declared a special cash dividend of $10 in July and boosted its quarterly cash dividend to $1.17. Therefore, this performance will likely continue doing well in the near term. 

Texas Pacific Land stock price analysis

TPL chart by TradingView

The daily chart shows that the TPL share price surged to a record high of $1,762, its all-time high. It moved above the key resistance level at $886, its highest level on November 2022. That was the upper side of the cup and handle pattern.

Texas Pacific Land shares have moved above the 50-day and 100-day Exponential Moving Averages (EMA). Most importantly, the Relative Strength Index (RSI) and the Stochastic Oscillator have moved to the overbought level.

Therefore, while the stock may continue rising, there is a likelihood that it will have a small pullback to about $1,400 and then resume the bull run. More gains will be confirmed if the stock jumps above the key resistance level at $1,762.

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General Motors (GM) stock price has suffered a harsh reversal this week as concerns about tariffs remained. It has dropped to $54.80, down by 10.80% from its highest point this week, meaning that it has moved into a technical correction. It has risen by 110% from its lowest point last year.

Tariff concerns remain

General Motors and other automakers like Ford and Stellantis crashed hard as investors remained concerned about Trump’s tariffs. In a statement on Monday, the incoming president warned that he would impose large tariffs on Mexican and Canadian goods.

That was a notable statement because GM is not only one of the top manufacturers in the US but also one of the top importers. It has large operations in Michigan, Texas, Tennessee, and Mexico.

Therefore, a 25% tariff on imports will make its vehicles more expensive in the US, which will hurt its sales in the country. At the same time, Mexico, Canada, and China will also respond by imposing tariffs of their own.

If this plan works, the industry could disrupt the industry at a time when companies are struggling with slow sales.

Still, on the positive side, there are signs that these tariffs will not go on because of the risks involved. For one, high tariffs will be passed to consumers, a move that will lead to higher inflation in the country.

Also, it is unclear whether tariffs on Mexican goods will be legal since it belongs to the USMCA, which Donald Trump negotiated. As such, since the deal was ratified by the US Senate and Congress, it is part of the law and cannot be exited by the executive. 

General Motors business is doing well

On the positive side, there are signs that General Motors business is doing well after the company went slow on its EV investments. It will also benefit from the ongoing interest rate cuts in the US and the rising demand for hybrid vehicles. 

The most recent financial results showed that GM’s revenue rose from $44.1 billion in the third quarter of 2023 to over $48.7 billion. This happened as the number of vehicle sales and prices continued rising.

GM’s profits also held steady in the last quarter, with the diluted earnings-per-share rising from $2.2 to $2.68. This happened even as the company hiked salaries following last year’s strikes. 

It has done that by continuing to cut costs, especially in its EV business and reducing the size of its workforce. Most recently, it announced plans to cut jobs by 1000 in the coming months.

GM has also continued to return funds to its shareholders through dividends and share repurchases. Indeed, its outstanding shares have dropped from 1.4 billion in 2021 to 1.2 billion today. 

Analysts expect the General Motor’s revenues will hit $181 billion this year, while its earnings per share will be $10.3, higher than the last year it made $7.68.

GM stock analysis

The weekly chart shows that the General Motors share price has been in a strong bull run in the past few months. It recently jumped to a high of $61.25, its highest level since January 2022.

GM stock has formed a golden cross pattern as the 50-week and 200-week Exponential Moving Averages (EMA). In most periods, this is one of the most bullish patterns in the market. 

General Motors has moved to the 23.6% Fibonacci Retracement level. The Relative Strength Index (RSI) has continued rising and is nearing the overbought level. 

The stock has formed a bearish engulfing pattern, which is one of the most bearish candlestick signs. Therefore, the stock will likely have some short-term volatility and drop to $50. In the longer term, however, the stock will bounce back and retest $65.63, its highest level in 2022. 

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