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2023-12-16	WMT	Below is Validea's guru fundamental report for WALMART INC (WMT). Of the 22 guru strategies we follow, WMT rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields. WALMART INC (WMT) is a large-cap growth stock in the Retail (Grocery) industry. The rating using this strategy is 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. MARKET CAP: PASS STANDARD DEVIATION: PASS TWELVE MINUS ONE MOMENTUM: NEUTRAL NET PAYOUT YIELD: NEUTRAL FINAL RANK: FAIL Detailed Analysis of WALMART INC WMT Guru Analysis WMT Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam. Additional Research Links Top NASDAQ 100 Stocks Factor-Based ETF Portfolios Harry Browne Permanent Portfolio Ray Dalio All Weather Portfolio High Shareholder Yield Stocks About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	WMT	The Dow Jones Industrial Average is a great place to go shopping if you're an investor seeking passive income. This collection of 30 of the world's largest publicly traded businesses is packed with companies that have stellar track records for earnings growth. Their dividend yields provide instant cash returns, too, with a high chance of steady annual hikes on the way for many years into the future. It doesn't take a very large investment to start to build that income stream, either. With a $15,000 investment split about evenly between Walmart (NYSE: WMT) and Home Depot (NYSE: HD), for example, you'd receive about $300 annually, or 2% on your cost. Here's why that's an attractive option for dividend stock investors today. Walmart is well-positioned Walmart's dividend yield is relatively small at 1.5%, but don't let that issue scare you away from this stock. The retailer is checking all the right boxes for investors, after all. Sales growth was a healthy 5% year over year in the most recent quarter, putting it well ahead of peers like Target. Shoppers are more focused on saving money and on buying consumer essentials like groceries these days, and that trend favors Walmart's focus on value. Look beyond the headline numbers and there's even better news for this retailer. Walmart's customer traffic is solidly positive, and shoppers are spending more with each visit. Profit margins are improving as well. Sure, Walmart's executive team had some cautious comments about short-term growth trends. But its slim inventory holdings and strong traffic trends mean it has a good chance of continuing its positive momentum into 2024 and beyond. Home Depot will bounce back It's understandable that Home Depot stock would trail the market this year as rising interest rates have slowed the housing market. The company has been through many previous downturns, though, including the Great Recession. It emerged from each of these slumps to set new sales records, though. Look for another such rebound ahead, potentially starting in 2024. Home Depot is expecting comparable-store sales to drop by between 3% and 4% this year, roughly consistent with the declines expected by peer Lowe's. Yet profits will remain strong. Home Depot's operating margin is on track to stay above 14% of sales. Home Depot is also one of the market's most efficient businesses when it comes to return on invested capital. That's a sure sign the management team is good at allocating excess cash, whether that means more investments in the e-commerce infrastructure, stock buybacks, or a rising dividend. Home Depot aims to return 55% of annual earnings to shareholders in the form of dividend payments. That's more generous than Lowe's 35% goal and is one reason why its yield is so high. Sure, the dividend stock might underperform if the economy tilts into a recession in the coming quarters. But that's a normal part of the retailing world. Income investors can look past those short-term swings to focus on Home Depot's bright future as it keeps capitalizing on its dominant position in the attractive home improvement industry. Should you invest $1,000 in Home Depot right now? Before you buy stock in Home Depot, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Home Depot wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 11, 2023 Demitri Kalogeropoulos has positions in Home Depot. The Motley Fool has positions in and recommends Home Depot, Target, and Walmart. The Motley Fool recommends Lowe's Companies. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	WMT	While looking for a stock that could double within five years may sound like a lofty aspiration, it may be more within reach than most people realize. Requiring a 15% annualized return for five years, an investment needs to slightly outperform the market's historical annualized total return of roughly 11% to 12% to accomplish this feat. Additionally, by focusing on dividend growth stocks with well-funded dividends and a history of solid returns on invested capital, investors can further stack the odds of meeting this 15% threshold in their favor. United Parcel Service (NYSE: UPS) and Murphy USA (NYSE: MUSA) are two companies that fit this simple billing. Trading at a discount to the S&P 500's valuations, here's why these two businesses look primed to outperform over the next five years and beyond. Is a rebound en route for UPS? With Amazon recently surpassing UPS and FedEx as the largest delivery business in the U.S., it may not seem like a great time to buy UPS. Worse yet for UPS, Amazon isn't just the company's biggest competitor now but is still its largest customer, accounting for 11% of its total revenue in 2022. While the two companies still work together, it is not unreasonable to imagine this partnership ending at some point -- just like FedEx did with Amazon in 2019. So, with this bad news laid out -- what on Earth makes UPS an attractive dividend stock over the next five years? Three things: 1. The start of a rebound Announcing a new five-year contract with its workers in August, UPS has begun reeling customers back in who had temporarily gone elsewhere due to the uncertainty stemming from the labor dispute. During the company's third-quarter earnings, CFO Brian Newman explained that from August 2022 to October 2022, daily shipments increased by 1.5 million. However, this figure has jumped to 2.7 million over the same time this year, highlighting that UPS is rebounding off of its lows in August -- despite an awful macroeconomic environment. Should this 90-day increase extend throughout the year, it would account for roughly 5% sales growth. 2. Leveraging its massive network for future growth Building upon its entrenched position within the industry, UPS is now focusing on specialized (and more profitable) niches such as time-sensitive and temperature-controlled healthcare shipping. Recently acquiring MNX Global Logistics in 2023 and Bomi Group in 2022, the company now expects its healthcare vertical to account for more than 10% of sales by the end of the year. These acquisitions not only strengthen UPS's healthcare ambitions, but support its international growth story, providing footholds in Latin America, Europe, and Asia. Pair these acquisitions with a joint venture focused on India's $5 trillion economy, and investors should expect to see international unit quickly grow to account for more than its current 20% of UPS's sales. 3. A top-tier return on invested capital UPS currently has a return on invested capital (ROIC) of 21%, which places it in the top quintile among its S&P 500 peers. This is important for investors as stocks with an ROIC in the top 20 percentile tend to outperform their lower-ranked competitors. Measuring a company's profitability compared to its debt and equity, UPS' high mark is promising as it highlights its ability to generate outsize profits despite the heavy capital expenditures needed to maintain its network. And the icing on the cake for investors? The stock's valuation remains near 10-year lows while its dividend yield is near 10-year highs. UPS PE Ratio data by YCharts Aiming for 15% annualized growth over the next five years to reach the goal of doubling your money, UPS' hefty yet well-funded 4.2% dividend yield significantly improves your odds. Raising its dividend every year since the Great Recession, UPS looks like an ideal candidate to double your money in five years as it continues to rebound, operationally and valuation-wise, from this once-in-a-decade low. Murphy USA: Obliterating the market's returns, but few are noticing Delivering a total return of over 800% since its spinoff from Murphy Oil in 2013, convenience store chain Murphy USA has been one of the most successful stocks of the last decade, yet few investors may recognize the company. Home to over 1,700 stores -- the vast majority of which are located close to a Walmart thanks to a past partnership -- Murphy USA is now the fourth-largest convenience chain in the U.S. by store count. This massive network begets advantageous fuel-sourcing agreements for the company, letting it pass along lower gas prices to its customers. Thanks to this top-tier cost structure advantage, Murphy's cost per gallon is typically $0.05 to $0.10 lower than its peers in the bottom half of the National Association of Convenience Stores. These price savings attract value-focused customers and open up the opportunity for merchandise sales. With 60% of the gas stations in the U.S. run by single-store operators who cannot compete against Murphy USA's pricing, this significant cost advantage should not dwindle anytime soon. Additionally, the fragmentation of the convenience store industry makes it ripe for consolidation, providing the company with an incredibly long potential growth runway via mergers and acquisitions should it continue to go down that path. Acquiring QuickChek and its 157 stores in 2021, Murphy expanded into the Northeast while adding new food and beverage and electric vehicle charging capabilities. Currently owning an impressive 21% ROIC, Murphy USA generates boatloads of net income and free cash flow -- the vast majority of which it immediately returns to shareholders through share buybacks and dividends. MUSA Free Cash Flow data by YCharts Thanks to these buybacks -- which have lowered the company's outstanding shares by 54% since 2013 -- and a new dividend that has been raised for seven consecutive quarters, Murphy USA looks like a solid buy at just 15 times earnings. Should you invest $1,000 in United Parcel Service right now? Before you buy stock in United Parcel Service, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and United Parcel Service wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 11, 2023 American Express is an advertising partner of The Ascent, a Motley Fool company. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Josh Kohn-Lindquist has positions in FedEx, Mastercard, Murphy Usa, United Parcel Service, and Visa. The Motley Fool has positions in and recommends Amazon, FedEx, Mastercard, Visa, and Walmart. The Motley Fool recommends Murphy Oil, T-Mobile US, United Parcel Service, and Verizon Communications and recommends the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-15	WMT	Today’s episode of Full Court Finance at Zacks explores the bullish market rally following the Fed’s rate cut outlook. Despite the impressive run for the Nasdaq and the S&P 500 in 2023, many large-cap stocks have underperformed for various reasons. The three highly-ranked stocks we dig into today—DocuSign (DOCU), Nike (NKE), and Target (TGT)—are all trading at least 30% below their highs and could be poised for serious comebacks in 2024. Jay Powell and the Fed gave the green light to the bulls on Wednesday when the world’s most important central bank signaled the possibility of three rate cuts in 2024. The 10-year U.S. Treasury is back below 4% (3.92%) after sitting at 5% in late October as Wall Street rapidly prices in lower rates. The Fed’s newfound dovishness finally confirms what the bulls have been saying and doing for a large chunk of 2023 and certainly since the end of October. The S&P 500 appears on the cusp of summiting a new peak by the end of 2023 or early 2024. All of this strength came before we even entered the official Santa Claus rally period, which includes the final five trading days of the year and the first two trading days of the new year. There will likely be some selling and choppiness in the weeks and months ahead. Still, more money is poised to flow into stocks in 2024 as the calculus on cash and bonds changes and investors grow increasingly nervous about missing out again. DocuSign, Inc. (DOCU) DocuSign crushed our Q3 FY24 EPS estimate on December 7 and raised its guidance to help it land a Zacks Rank #1 (Strong Buy) right now. DOCU stock has soared 30% in the last month to retake its 50-day, its 200-day, and its long-term 50-week moving averages. Yet, the e-signature stock still trades over 80% below its record highs after it got crushed for slowing growth and weak bottom-line results. DOCU’s revenue soared following its 2018 IPO, including four straight years of between 35% to 49% growth (19% last year in FY23). The company remains a powerhouse of electronic signatures, document generation, and beyond as medical forms, legal documents, and much more are becoming increasingly paperless. DocuSign has responded to its slower growth and higher rate environment by cutting costs, changing leadership, and rolling out other efforts to streamline its business. Image Source: Zacks Investment Research DocuSign’s valuation levels remain sky-high. But DOCU is focused on the bottom line. Investors might want to consider the e-signature and digital document firm with 1.4 million customers as Wall Street begins to search high and low for technology stocks that are still trading far below their highs. Nike, Inc. (NKE) Nike trades around 30% below its highs heading into its Q2 FY24 earnings release on December 21. Wall Street sold Nike shares based on fears about growing competition and other headwinds. NKE also got caught up in the broader consumer discretionary selloff. Nike certainly faces increased competition from relative newcomers Hoka and On in the running shoe segment and among consumers looking for maximum comfort and support at their jobs. Adidas, Lululemon, and digital native upstarts are also fighting for a larger share of the so-called streetwear market or the fashion end of sportswear. Despite more challengers, Nike remains the heavyweight champion of sportswear and one of the most valuable brands in the world alongside the likes of Coca-Cola. NKE has treaded down a new direct-to-consumer-heavy path in both brick-and-mortar and e-commerce. Nike’s sales are projected to climb 4% this year and over 8% higher next year to help boost its adjusted earnings by 16% and 17%, respectively, based on Zacks estimates. Image Source: Zacks Investment Research Nike’s earnings revisions help it land a Zacks Rank #2 (Buy) right now and its Shoes and Retail Apparel segment is in the top 23% of over 250 Zacks industries. Nike has climbed 850% during the last 15 years vs. the S&P 500’s 420% and its sector’s 220%. Nike is up 73% in the past five years, even though it trades 30% below its highs. Nike has retaken its 50-day and 200-day and is on the cusp of climbing above its very long-term 50-month moving average. Nike trades near its 10-year median at 29.7X forward 12-month earnings and pays a dividend. Target (TGT) Target posted blowout Q3 earnings results in mid-November and provided upbeat guidance that helped it capture a Zacks Rank #2 (Buy). The strong bottom-line performance extended its recent rebound that has TGT stock up 30% since the start of the fourth quarter. Even with the comeback, the retail standout trades 45% below its highs. TGT’s resurgence has taken it right to its 50-week moving average and solidly above its 200-day and 50-day. Target trades at a 30% discount to its sector, 32% below Walmart (WMT), and close to TGT’s 10-year median. TGT stock is far more than a plummeting pandemic winner. Target crushed Walmart over the last 15 years, up 310% vs. 170% despite its massive fall from its 2021 highs. Image Source: Zacks Investment Research Target, like many others, failed to adapt to quickly changing consumer shopping patterns over the last year-plus. The firm is also dealing with other setbacks. But it appears that TGT is finally finding its footing again. TGT’s adjusted earnings are projected to soar 39% this year and then climb another 9% higher next year. And its dividend yields 3.2% right now. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows. It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NIKE, Inc. (NKE) : Free Stock Analysis Report Target Corporation (TGT) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report DocuSign (DOCU) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-15	WMT	Below is Validea's guru fundamental report for WALMART INC (WMT). Of the 22 guru strategies we follow, WMT rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields. WALMART INC (WMT) is a large-cap growth stock in the Retail (Grocery) industry. The rating using this strategy is 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. MARKET CAP: PASS STANDARD DEVIATION: PASS TWELVE MINUS ONE MOMENTUM: NEUTRAL NET PAYOUT YIELD: NEUTRAL FINAL RANK: FAIL Detailed Analysis of WALMART INC WMT Guru Analysis WMT Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam. Additional Research Links Top Large-Cap Growth Stocks Factor-Based Stock Portfolios Dividend Aristocrats 2023 High Insider Ownership Stocks Top S&P 500 Stocks About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-15	WMT	InvestorPlace - Stock Market News, Stock Advice & Trading Tips E-commerce has revolutionized the way people buy products and services. The convenience of e-commerce has led to the collapse of American shopping malls. Picking the right e-commerce stocks in the early 2000s could have yielded generational wealth for investors. While getting into e-commerce now isn’t the same opportunity as in the early 2000s, the industry is still growing quickly. E-commerce is projected to achieve a compounded annual growth rate of 10.15% from now until 2028. Surprisingly, only one-third of people shop online, which means the industry still has plenty of room to grow. Investors who want to profit from that growth may want to consider these top e-commerce stocks. E-Commerce Stocks: Shopify (SHOP) Source: Burdun Iliya / Shutterstock.com Shopify (NYSE:SHOP) is an e-commerce platform that helps companies create online stores and sell products. The company has monthly subscriptions, which results in annual recurring revenue that investors can count on. Switching from Shopify is difficult, and doing so will result in businesses shutting down their e-commerce operations. Most businesses will continue to pay Shopify’s monthly subscription unless they are on the brink of bankruptcy. The company is leveraging its billions of interactions for machine learning to optimize its platform and increase sales for its merchants. Those efforts and others have paid off. Shopify recently reported its best Black Friday ever as merchants on the platform drummed up $4.1 billion in sales. Shopify continues to deliver high growth for investors. Revenue increased by 25% year-over-year, while gross profit jumped by 36% year-over-year. The company reported its fourth consecutive quarter of positive free cash flow, which reached 16% of revenue. Amazon (AMZN) Source: Tada Images / Shutterstock.com Amazon (NASDAQ:AMZN) is the face of e-commerce and the company that made the industry mainstream. The stock had been a bit slow for a few years but has come back to life with a 71% year-to-date gain. Even with the company’s high penetration into e-commerce, Amazon continues to report double-digit year-over-year revenue growth. Net sales increased by 13% in the third quarter, while net income soared to $9.9 billion. Amazon isn’t just an e-commerce company anymore. The tech conglomerate offers several avenues for growth, such as Amazon Web Services and Twitch. Andy Jassy, Amazon CEO, shared excitement about three business segments. The first two come as no surprise: Amazon Stores and AWS. However, Jassy also mentioned that the company’s advertising revenue grew robustly. Of the many business segments under the Amazon umbrella, it’s exciting to see ad revenue get mentioned alongside stores and AWS. Amazon has been breaking into the walled gardens of online advertising, and it makes sense. People don’t go on search engines or social media to buy goods and services. However, many people go on Amazon with the intent to buy something or plan their next purchase. Businesses can get better ad results if their customers have that mindset. Amazon gives them that opportunity, and their advertising business generates more revenue and earnings growth in the future. Perion (PERI) Source: photobyphm / Shutterstock.com Perion (NASDAQ:PERI) is a smaller advertising company that combines impressive growth rates with a low valuation. While investors have kept many e-commerce stocks on their radar, Perion remains relatively unknown despite its financial performance. Perion has a forward P/E ratio of nine, which is something investors would expect from a telecom stock like Verizon (NYSE:VZ) or AT&T (NYSE:T). Despite the low valuation, Perion achieved 17% year-over-year revenue growth and 28% year-over-year net income growth while having no debt. The company has more than three times the amount of total assets than total liabilities. Perion offers advertising solutions for search engines, social media, video, CTV, and other major digital advertising channels. Many brands turn to the growing advertising company for ad placements and optimal performance. That trend continued as Perion reported its best Black Friday e-commerce sales volume ever. The company also recently released a generative AI-powered dynamic audio advertising solution that is leading to more demand. The fast-growing advertising company has a $1.3 billion market cap and has gained 11% year-to-date. The stock’s 944% growth over the past five years highlights the potential for lofty returns. Thus, it is one of my top picks when it comes to e-commerce stocks. Lululemon Athletica (LULU) Source: lentamart / Shutterstock Lululemon Athletica (NASDAQ:LULU) has been a great stock for long-term investors. Shares have gained 51% year-to-date and are up by 311% over the past five years. The athletic apparel company has many retail locations in North America and uses its online store to generate more sales. Revenue growth has decelerated in recent quarters due to macroeconomic headwinds, but Lululemon Athletica remains well ahead of competitors like Nike (NYSE:NKE). In the third quarter, revenue increased by 19% year-over-year compared to Nike’s 2% year-over-year revenue jump. Lululemon Athletica expanded its physical presence with 14 additional stores and closed out the quarter with 686 stores. The company is trendy among younger consumers and is growing faster than many of its competitors. The company recently announced a $1 billion stock repurchase program, which will further reward long-term investors. Lululemon Athletica’s leadership has demonstrated commitment to increasing shareholder value in addition to reporting strong financials. Lululemon Athletic enjoys double-digit profit margins and looks like a candidate that may offer dividends by the end of the decade. Walmart (WMT) Source: fotomak / Shutterstock.com Walmart (NYSE:WMT) is the largest retailer in the world and is a popular destination for people who want to save money on various products. Walmart specializes in getting the lowest prices and operates over 10,000 stores in more than 20 countries. Walmart shares took a breather in November after a nice rally and are up by 5% year-to-date. Shares have gained 64% over the past five years. The retailer reported 5.2% year-over-year revenue growth in the third quarter. The company also reported 15% year-over-year e-commerce growth in the same quarter. Walmart’s retail international segment is growing at a faster rate than U.S. sales. Interestingly, e-commerce is having the opposite trend. While international e-commerce sales dropped by 3% year-over-year, U.S. e-commerce sales grew by 24% year-over-year. Walmart is dabbling in advertising just like Amazon and reported an impressive 26% year-over-year growth rate for Walmart Connect advertising sales. Ads still make up a small portion of Walmart’s total revenue. However, in-store ads combined with online ads on Walmart’s site can lead to more growth in the years to come. If advertising continues to grow at this pace, it will eventually influence a larger percentage of Walmart’s total revenue. It is one of the best e-commerce stocks you can buy, in my opinion. Alphabet (GOOG, GOOGL) Source: IgorGolovniov / Shutterstock.com Many e-commerce businesses run advertisements to attract potential customers. Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) is one of the top resources for these business owners due to the company’s platforms and ad targeting capabilities. Google and YouTube are two of the many subsidiaries under the Alphabet umbrella. The company also gives investors exposure to exciting segments like artificial intelligence and the cloud. Alphabet stock has been a reliable winner for long-term investors. Shares have gained 47% year-to-date and are up by 156% over the past five years. Alphabet’s third-quarter results suggest that the gains can continue. The online advertising giant reported 11% year-over-year revenue growth and 41.6% year-over-year net income growth. Google Cloud continues to grow at a robust pace. That business segment grew by 22.5% year-over-year and reached $8.4 billion in revenue. Google Cloud powers up many websites and makes up more than 10% of total revenue. Google Cloud is compensating for a slowdown in Google advertising revenue growth, which only came in slightly below 10% year-over-year. MercadoLibre (MELI) Source: rafapress / Shutterstock.com MercadoLibre (NASDAQ:MELI) is an Argentine e-commerce and fintech company that delivers exceptional top-line and bottom-line growth. MercadoLibre’s e-commerce platform has been around for over 20 years and helps everyone from small sellers to large official stores. The marketplace has millions of sellers. MercadoLibre is the largest marketplace in Latin America. Growth is high across the board, especially in Mexico and Brazil. The stock has rewarded long-term investors by almost doubling year-to-date. Long-term gains paint an even better picture, as shares are up by almost 400% over the past five years. The company has generated strong returns for shareholders through its impressive finances. Revenue soared by 40% in the third quarter while net income comfortably surpassed expectations and almost tripled year-over-year. MercadoLibre isn’t the cheapest e-commerce play if investors look at the conventional P/E ratio. Shares currently trade at an 80 P/E ratio and a 46 forward P/E ratio. However, the stock’s PEG ratio is under one, which some investors interpret as an undervalued stock. Even investors who look at companies based on their P/E ratios have been willing to pay a premium for exposure to MercadoLibre stock. On this date of publication, Marc Guberti held long positions in SHOP and PERI. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet. More From InvestorPlace The #1 AI Investment Might Be This Company You’ve Never Heard Of Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post Next-Generation Retail: 7 Stocks Innovating in E-Commerce appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-14	WMT	Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Walmart Inc (Symbol: WMT), where a total of 80,235 contracts have traded so far, representing approximately 8.0 million underlying shares. That amounts to about 75.4% of WMT's average daily trading volume over the past month of 10.6 million shares. Especially high volume was seen for the $155 strike call option expiring December 15, 2023, with 7,910 contracts trading so far today, representing approximately 791,000 underlying shares of WMT. Below is a chart showing WMT's trailing twelve month trading history, with the $155 strike highlighted in orange: Zions Bancorporation, N.A. (Symbol: ZION) options are showing a volume of 16,416 contracts thus far today. That number of contracts represents approximately 1.6 million underlying shares, working out to a sizeable 75.3% of ZION's average daily trading volume over the past month, of 2.2 million shares. Especially high volume was seen for the $37.50 strike put option expiring January 19, 2024, with 4,500 contracts trading so far today, representing approximately 450,000 underlying shares of ZION. Below is a chart showing ZION's trailing twelve month trading history, with the $37.50 strike highlighted in orange: And General Electric Co (Symbol: GE) saw options trading volume of 27,994 contracts, representing approximately 2.8 million underlying shares or approximately 73.1% of GE's average daily trading volume over the past month, of 3.8 million shares. Especially high volume was seen for the $105 strike call option expiring March 15, 2024, with 18,016 contracts trading so far today, representing approximately 1.8 million underlying shares of GE. Below is a chart showing GE's trailing twelve month trading history, with the $105 strike highlighted in orange: For the various different available expirations for WMT options, ZION options, or GE options, visit StockOptionsChannel.com. Today's Most Active Call & Put Options of the S&P 500 » Also see: Dividend Stocks FOSL market cap history VO shares outstanding history The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-14	WMT	InvestorPlace - Stock Market News, Stock Advice & Trading Tips As we get ready to start 2024, investors can’t turn on thefinancial newswithout hearing one or both sides of the soft landing debate. The question is whether the Federal Reserve can bring inflation down and cool down the economy without causing a recession. So, is it time to look for soft landing stocks, that is, stocks that will go up if this scenario comes to pass? To answer that question, you must decide if the economy can achieve a soft landing. To be clear, I have an opinion, but so does everyone. It may be useful for investors to apply Occam’s razor principle. That is if you have two competing ideas to explain the same phenomenon, the simplest answer is probably right. In this case, the simple answer is to look at what the data shows. And right now, that data is showing that the soft landing is more likely than not. You may disagree with that. I call it like I see it. What the data will say a month or three months from now may be completely different. But investing in this market requires you to be nimble. Here are three soft landing stocks to consider. Walmart (WMT) Source: fotomak / Shutterstock.com When you’re looking for soft landing stocks, Walmart (NYSE:WMT) is a safe stock to start off your search. A soft landing may or may not lead to lower interest rates. With Walmart, lower interest rates aren’t your primary concern. The company hasn’t been immune from the impact of a weakening consumer. Still, revenue and earnings are positive year-over-year and analysts are forecasting high single-digit earnings growth over the next 12 months. The company has been taking steps to have a larger omnichannel presence. The company’s buy online, pickup in-store (BOPUS) program is gaining momentum. And more importantly, the company is putting itself in a position to compete with Amazon (NASDAQ:AMZN) on more than just price. Walmart stands to be a retail winner in the 2023 holiday season. Investors won’t get earnings results until February. But by that time, there may be more clarity as to the direction of the economy. At 22x forward earnings, the stock is reasonably valued. D.R. Horton (DHI) Source: Casimiro PT / Shutterstock.com The surge in homebuilder stocks in 2023 has been a simple case of demand outpacing supply. The great relocation may be slowing down, but the transplants are still looking to plant roots in their new locations. D.R. Horton (NYSE:DHI) has been a standout performer. The stock is up more than 65% for the year and recently made a new all-time high. There’s reason to believe that there could still be growth even if interest rates remain at their current level. That being said, the stock is looking a little toppy. However, on December 13, DHI stock got a bullish price target increase from Barclays. The firm raised its target from $143 to $166. One reason for the spike in D.R. Horton stock comes from the company’s solid fundamentals. Specifically, the company focuses on reducing the cycle times so they can turn homes faster and reduce their inventory levels. This allows them to align earnings per share (EPS) with cash flow more effectively. Occidental Petroleum (OXY) Source: T. Schneider / Shutterstock.com Occidental Petroleum (NYSE:OXY) may seem like an odd candidate to appear with other soft-landing stocks. The conventional wisdom is that higher oil prices will signal the opposite of what the Federal Reserve is hoping for. It also tends to be negative for equities. That may be true. However, some analysts believe that the yield on the 10-year Treasury bonds and the dollar will continue to weaken with or without rate cutting by the Federal Reserve. In that scenario, there’s room for oil prices to go higher without tanking the economy. In that scenario, you’ll want oil stocks and Occidental is a good pick. OXY stock is at the lower end of its 52-week range. In a year when many big oil companies are growing through acquisition, Occidental announced a deal to acquire CrownRock for $12 billion which will immediately improve the company’s free cash flow (FCF) accretion. On the date of publication, Chris Markoch did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019. More From InvestorPlace The #1 AI Investment Might Be This Company You’ve Never Heard Of Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post 3 Stocks to Buy to Embrace a Soft Landing in 2024 appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-14	WMT	Below is Validea's guru fundamental report for WALMART INC (WMT). Of the 22 guru strategies we follow, WMT rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields. WALMART INC (WMT) is a large-cap growth stock in the Retail (Grocery) industry. The rating using this strategy is 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. MARKET CAP: PASS STANDARD DEVIATION: PASS TWELVE MINUS ONE MOMENTUM: NEUTRAL NET PAYOUT YIELD: NEUTRAL FINAL RANK: FAIL Detailed Analysis of WALMART INC WMT Guru Analysis WMT Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam. Additional Research Links Top Large-Cap Growth Stocks Factor-Based Stock Portfolios Dividend Aristocrats 2023 High Insider Ownership Stocks Top S&P 500 Stocks Excess Returns Investing Podcast About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-14	WMT	InvestorPlace - Stock Market News, Stock Advice & Trading Tips The list of companies that have stopped advertising on platform X (formerly known as Twitter) because Elon Musk endorsed an antisemitic post continues to grow. It’s become so long that you could construct an excellent portfolio from all the names abandoning the social media platform and its volatile billionaire owner. Interestingly, most companies that have dropped ads from X use corporate speak to avoid calling Musk an outright racist, which remains debatable. I think he enjoys stirring the pot, much like Donald Trump. What these two men actually believe, I doubt anyone will ever know. The latest large-cap stock to drop X was Walmart (NYSE:WMT), which dropped the platform from its advertising plan on Dec. 1. “We aren’t advertising on X as we’ve found other platforms to better reach our customers,” a Walmart spokesperson said. According to media reports, the number of brands bailing on X is more than 100. Here are three smart stock picks from the carnage Musk created by his lonesome. Microsoft (MSFT) Source: The Art of Pics / Shutterstock.com According to The New York Times, Microsoft (NASDAQ:MSFT) pulling its ads from X could be worth more than $4 million in lost revenue to Musk. That might not seem like a lot, given the billionaire paid $44 billion for the platform formerly known as Twitter. However, in 2022, X generated $4.4 billion in revenue, most of it from ads. At the end of November, the Times said the number of brands leaving the platform was more than 200. $2 million per advertiser is $400 million in lost revenue or about 10% of its annual sales. X CEO Linda Yaccarino tried to convince customers Musk’s views on free speech were something to get behind. After what happened to Bud Light this past summer, there is no way any CEO is going anywhere near X. That would be career suicide. “It doesn’t resonate at all,” Ruben Schreurs, the chief strategy officer at Ebiquity, a marketing and media consulting firm said, The Times reported. Schreurs added that the spending pauses seemed to be “turning into a termination of advertising on X.” Only Musk’s sale of the platform will get these brands back. As for Microsoft, there is no way it has any appetite for mixing it up with Elon Musk. After going through a stressful couple of weeks with OpenAI, it can find plenty of places to spend $4 million in ad revenue. Netflix (NFLX) Source: TY Lim / Shutterstock.com According to The Times, Netflix (NASDAQ:NFLX), pulled $3 million in ads. The paper doesn’t specify over what period. However, assuming 90% of X’s $4.4 billion in 2022 revenue was for ads, daily ad spending on the platform exceeds an estimated $10.8 million. The revenue damage becomes far more real annualized over a year. According to Statista, Netflix spent $1.59 billion in 2022 on advertising expenses. That was down slightly from $1.67 billion a year earlier. Since 2014, the most it’s ever spent was in 2019, when it dished out $1.88 billion. If Netflix spent $3 million per week on X, which is hard to imagine, Elon Musk’s proverbial goose is undoubtedly cooked. Even if $3 million per week were accurate, Netflix has ad-supported plans to grow. It can use the money not spent on X to reinvest in its ad business. To me, and probably to Netflix shareholders, that is a much better return on investment. Elon’s loss is Netflix’s gain. Airbnb (ABNB) Source: Kaspars Grinvalds / Shutterstock The last of the three is Airbnb (NASDAQ:ABNB). It’s reported to have pulled $1 million in ads from X. The optics of a service such as Airbnb supporting the rantings of a madman would upset not only its users but also its hosts, which drive the company’s revenues. Airbnb doesn’t exist without its hosts. CEO and co-founder Brian Chesky knows this firsthand because he was the company’s first host. Today, more than four million hosts provide over seven million listings in 220+ countries. Sure, you also have to have guests, but if they didn’t stay at an Airbnb, they’d stay at a hotel or resort or sleep in a tent at a campground. Inventory is critical to the business. Interestingly, co-founder Joe Gebbia serves on Tesla’s (NASDAQ:TSLA) board, which he joined in 2022. That would be an awkward conversation at the next Tesla board meeting. Hopefully, Musk doesn’t use the exact words he did with Walt Disney (NYSE:DIS) CEO Bob Iger. At least, in Iger’s case, he wasn’t in the room. Of these three names, Airbnb had the biggest reason to pull their ads. It isn’t an excellent look to support an alleged racist when you’re selling an inclusive type of experience. I continue to like ABNB stock. On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia. More From InvestorPlace ChatGPT IPO Could Shock the World, Make This Move Before the Announcement Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post 3 Smart Stock Picks in the Wake of Platform X’s Ad Exodus appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-13	WMT	In this podcast, Motley Fool analyst Bill Barker and host Deidre Woollard discuss: The power of Chewy's auto-ship service. If Chewy's growth is too dependent on macro trends. What factors could lead to a Dollar General turnaround. Motley Fool host Mary Long talks with Dexcom CEO Kevin Sayer about the impact of weight loss drugs on diabetes care. To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video. Should you invest $1,000 in Chewy right now? Before you buy stock in Chewy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Chewy wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 11, 2023 This video was recorded on Dec. 07, 2023. Deidre Woollard: Are you giving your pets gifts for the holidays? You're not alone. Motley Fool Money starts now. Welcome to Motley Fool Money. I'm Deidre Woollard here with Motley Fool Analyst Bill Barker. Bill, how's it going today? Bill Barker: It's going well. Thanks. Deidre Woollard: Glad to hear it. Well, yesterday on the show, Dylan and Bill Mann, I believe, talked about people's food. We're going to start with talking about pet food with Chewy earnings, so Bill, I got to ask you, I know you have pets. I believe you have a dog. Are you a Chewy subscriber? Bill Barker: I've seen some people rave about their Chewy's experience, but I get food delivered regularly by Amazon and haven't ever given it a thought as to why would change. Deidre Woollard: Do you have a subscription with Amazon, or do you just buy food when the bowl is empty? Bill Barker: There's a subscription for some of the food and other parts of the food when the bowl is empty. One of the dogs is on prescription food right now, so I can't just get that as easily as otherwise. But it's a problem for Chewy is that there aren't enough people like me thinking about getting multiple dogs out there. They need more customers it seems like. Deidre Woollard: I think so. Well, it's interesting because you get the subscription, but you get it through Amazon and Autoship is huge for Chewy two, it's about 76% of their business according to their earnings, and I find that interesting because I have a cat who's also on prescription food and also gets prescription medicine because he's itchy, and so we have Chewy for the medicine, but not for the food. The medicine is a big part of Chewy's business as well. Seems like a bigger part. But you're right, the earnings were, they weren't great. The customer count was down by 1% That's not great. This is a pandemic darling. But what impressed me was how much money everybody continues to spend, net sales of $543 per customer up year, every year by around 14%. They're trying to grow customers, but they also are trying to keep people spending some of that is the pharmacy part. But are they putting too much faith in how much we love our pets? I don't know if you've seen those commercials that she always been running, but they make it seem we are just ready to spend everything on our animals. Bill Barker: I guess if they're betting on an increased trend in what is termed, in some places, pet humanization, then that's one way to go. They are going to run into a limit on that before running into a limit on the possibility of acquiring more customers pointed out that there was a COVID darling. I think a lot of the growth was pulled forward. There was an interpretation of the mass adoption of pets as something that was the beginning of extended period of the growth in the pet markets rather than just a pulling forward of future growth, and the stock price reflected that in 2021 and not ever since. This is a stock that's been globeredis. Reality has been delivered rather than the fantasy that was hoped for by not just owners of this stock, but a lot of others that saw changes in behavior over a short period rather than fundamental changes in behavior over a longer period. Deidre Woollard: That is one of the things that I'm asking myself about, about this stock as well, this one, and the one we'll talk about later. Not a good year for either, but one of the things I mentioned on the call was really strong Black Friday and Cyber Monday. It's gone down now since then. But this thing about people buying pets gifts, do you buy your dogs gifts? Bill Barker: No. There have been some impulse purchases at times, but I've been asked by the kids, it's so and so's birthday. What are you getting her? I just take the cat, the dog. They don't know anything about that. They just want a little more food. That's what they really want. But certainly the opportunity to buy costumes at Halloween for your pet, it doesn't seem to be a thing that the pets want. But a lot of these gifts are things that people want more than the pets want. Deidre Woollard: Well, Chewy's betting on this idea of pet parents, or paw parents, depending on who you talk to. With this idea that your pet is family and you have to treat them like family, which I don't know. I love my cat, but I'm not sure I consider myself my cat's parent. Looking at Chewy tough here in the market, as we've mentioned, part of that losses, this is what the market really didn't like, and they're still a really young company. They're still growing. They're expanding into Canada. They're working on streamlining all of their shipping and things like that. I'm wondering, do you think the market has less tolerance for a company that isn't a tech company? Because losses seem to hurt more if you're not making software, from what I can tell. Bill Barker: Well, if you're not growing that fast and you're losing money, that's a bad combination, always has been. You can defer the making money while the growth is exceptional. But when the growth becomes something that you could measure against lots and lots of other things, and ones that are making money, you suffer by comparison. When you depart the category of 20, 30% whatever it might be, annual growth, and you wander into high single digit, very low double digit, which is about as high as you might rationally predict for Chewy. At this point, the question turns to how does that stack up in terms of profits and poorly is the answer today. Deidre Woollard: Badly yes. Bill Barker: Then you're, well, who are the most likely buyers and owners of the stock? It's people who buy the story and either have just unshakable faith in management, or think there's a hiccup going on or something like that. But you're getting into fewer and fewer buyers just when you don't have either strong growth or any profitability. Now, there's future profitability, I suppose, in this company if it focuses on that. But it's still saying that it's a good growth story. Deidre Woollard: That is the interesting thing is that it was maybe being seen as less of what it is, which is, e commerce, and seeing it more as some new type of company. The question I'm asking myself about it is, were the expectations too big? Because we've seen that with a lot of the pandemic darling is that they had growth, and we just thought, oh, the sky is the limit, and then we came back to reality. It's like maybe this is a smaller business than we thought. You mentioned earlier the idea of people need to be getting more pets. I mean, that's one of the issues that is happening. Adoption rates are down. We're not getting as many pets as we did when we were all home during the pandemic, and one of the things that I think about with this company is macro pressures. You've got the pressure of people probably will continue to spend on their pets, maybe spend a little less. You know, that's a concern. The other one that I think about which is off to the side, but the idea of household formation. My theory is if rents are more expensive, maybe people are living at home longer, maybe they're not going out and on their own and then maybe you won't get pets. With all of this stuff, is Chewy just a smaller business maybe than the market really wanted it to be? Bill Barker: Certainly than what the market wanted it to be back when the stock was 5x6x. What it is today, the growth was understood to be a function of that real step up during the pandemic, and then just stretched out as people would maintain their pets and get more insurance for them, and the pets would age and they'd have more prescription medicine and everything, and there were many new pet owners and they would become lifelong pet owners. Well, some of that has played out. The pet market is bigger today than it was in 2019, but it's still digesting a lot of people that aren't going to turn out to be longer term or lifelong pet owners, or because they don't have the choice to work from home, can't maintain their pet the way they had or the way the pet wants to be cared for. There's continued digestion of the growth that occurred, and for a company that was in the high-growth category, that's a difficult thing to navigate. Deidre Woollard: True. But the thing I do love about this is those auto ship numbers. I think that's a great thing to keep watching for this company, and as long as they keep having that and they keep growing spend, hopefully, they sort out some of the other stuff and learn to cut costs a little bit. Bill Barker: People will continue to receive the food and then the food will continue to get eaten, and it is convenient to have the autoship like a subscription? It is a subscription, so that is a more stable source of revenue than otherwise. But as the numbers this quarter showed, that's not enough to produce the top line growth that the stock needed. Deidre Woollard: I want to pivot and talk about another company that reported earnings which is Dollar General. It has not been a great year for them, either, not in the market or certainly in the court of public opinion. There was a Bloomberg cover story in September about Dollar General employees saying it's a terrible place to work. But I started getting interested in this one after that I read that story. Not a great look for them. But then they brought back their former CEO, Todd Bassos, in October. I'm starting to look at this one as a turnaround. One of the things that they announced, not on this call, but before that, was that they're investing $150 million in labor hours. They're focused more on the stores, on addressing some of those customer service problems. Some of the issues with shrink that they've had. In general, you've got a CEO coming back. How long do you give them, is it like a new CEO, where you say, it's got to be a full year. But if you've got a CEO coming back, they already know the company. Do you want to see action and results a little sooner? Bill Barker: Yeah, well, I think one of the things that you're going to see, and you saw it perhaps already, is the big bath quarter where you put a lot of the bad stuff into your first quarter, maybe two quarters of results for the CEO. Some charges, assess what you can put into the past and put it into one big bundle and then start talking about the future. I think that certainly with a returning CEO, he's going to be much more tuned to exactly where the bodies are buried for this company and a very detailed knowledge of what does and doesn't work. Not only in the industry generally, but with the company specifically. It's not a function of a company that needs, I think, a new pair of eyes to look at it. An old pair of eyes had great success, left at the right time, perhaps. But you only have to go back a year to have the stock double the price that it was that it is today. Prior to the last 12 months, it was a fairly smooth 15 years for the company. I think that the odds in the market with markets betting on is a return to the past. That's a pretty good story for shareholders, whether it develops as you say. That's a question, how much time you should give. I would say just a couple of quarters, you'll see something. Deidre Woollard: Yeah, I think what you just mentioned is why I'm interested in this one, because it was a good performers, it's a good dividends, it's been a good stock and then it's had this bad year. Now it seems maybe this is like their dominoes pizza moment where they admit that hey, there's a problem. But I think one of the things that's interesting for them, so not a great quarter, same store sales down a little bit. But they're putting a lot of their energy into growth. Maybe this is part of that, get all the cost stuff out of the way, because their real estate plans are ambitious, 800 new stores, about 1,500 remodels. You think sometimes as a CEO comes in, they want to trim costs, trims the sales. This is the opposite approach, and I'm wondering if that is because Dollar General, the Dollar stores, they have this captive audience. I think maybe they figure they increased, get more people in the stores, increase quality, maybe they increase sales. Is that something we should be looking at as part of the thesis here? Bill Barker: Well, the growth here has to be put into context, 800 stores. I think they've got 15, 17,000 right now there. Deidre Woollard: Yeah, they've got a lot of stores. Bill Barker: I'll talk about the Dollar stores in general for the category there are 37,000. To put that into a bit of pointless context, you could visit one every day for 100 years and not have yet visited them all. If that were a worthwhile thing to do with your next 100 years, I've given you that idea. [laughs] There are plenty of them out there, 800 more isn't really as big a number as you might think given the installed store base already and the availability of them. But there are probably 800 reasonable locations. When you map that out over a few years. I think the remodeling is also a big part of this and I wouldn't doubt that there are, well, more than 1,500 stores that look like they could use a little remodeling out of the entire account. I think they've got plenty to do. They've got to get by these OSHA reports and the employee safety problems and fines that they have accumulated over the years and have been back in the news this year. You know what you're getting when you go into a Dollar General. But they can up the experience, if they choose to use their money that way. They've, I think, discontinued their share buybacks so they've got some more money available to dedicate to that. Up to a point which is up to the point at which the debt becomes a problem, because this is a company that has plenty of debt. Deidre Woollard: Yeah, that's a good point. When you're assessing this as a potential, turnaround, there's just a lot of factors and I'm thinking about the Dollar stores in general, a lot lately because I'm thinking about shifting consumer behavior. What could be next? We've talked so much about consumer spending. I find it interesting looking at Dollar Tree versus Dollar General, because they're both Dollar stores, but you've got a different product mix. Dollar General is so much more tied to the grocery side of things. They're really are more in rural areas. Dollar Tree is starting to think like, OK, we're moving beyond the dollar, more expensive items. Dollar General, they're doing something different. They're putting in these DG markets. Dollar General markets, more fresh food. Looks like a grocery store, but like a very small grocery store. When you're thinking about Dollar General, what do you think about as, its role in the consumer spending cycle? Bill Barker: I think more and more embedded with the consumables and the refrigerated installations. The food that has to be refrigerated, that they're selling. They're moving more toward consumer spending that does not change over time and is not particularly vulnerable to macroeconomic factors. People are going to come in frequently for their consumables, they're putting in more produce which will bring people in more often, because that's something you buy more frequently. I think it's a good plan to get people in more frequently, give them what they need most, and layer on some impulse purchases beyond that. It's very competitive. They don't have a mote. It's extremely easy wherever there's competition. Although in some rural communities are, they go to place in many others, of any greater population size, or growing population. There's going to be competition not just from Family Dollar, Dollar Tree or Walmart, slightly larger or significantly larger locations, but there's only so much you can capture before the online sales are also a threat. Their normal purchase is I think, less or around $15 per basket. That's not something that people are most frequently getting done online. How much they can grow that basket size without finding that they're running into competition from other and bigger players? I don't know. I think that's a bit of a cap. But everything up until about 12 months ago was generally successful for this company. They had, as I said, a good more than decade long, fairly smooth, story that people would love to see repeated. Deidre Woollard: Well, I feel like both of the companies we talked about today are ones that we're going to want to see next quarter and because things have to go in a direction, at least. Thanks for your time today, Bill. Bill Barker: Okay, thank you. Deidre Woollard: If you're a regular Motley Fool money listener, you're probably well aware of how dividend stocks have the potential to really supercharge your portfolio's return. Dividends have accounted for around 40% of the total return of the S&P 500 since 1930. Of course, have been an important tool for all time greats like Benjamin Graham and Warren Buffett. Our top notch analysts at Motley Fool stock advisor certainly agree and have put together a list of five quality dividend payers that are also recommendations in our stock advisor service. The report is free to you just as a thank you for listening to our podcast. No purchase necessary. Just go to Fool.com slash dividends and we'll email it directly to your inbox. That's Fool.com slash dividends to claim your five dividend stock recommendations. Now we hear a lot about how weight loss drugs have the potential to upend more unexpected industries, airlines, gyms, apparel. But how are the leaders of medical device companies thinking about these new drugs? Up next, Mary Long talks with Kevin Sayer, CEO of Dexcom, about the future of diabetes care and the small monitor that's changing what that care looks like. Mary Long: Maybe we can start by having you give us an overview of the history of diabetes care and how Dexcom came to really be a pioneer in continuous glucose monitoring. Kevin Sayer: A great question. I personally go back in diabetes care back in the mid '90s. I started my time in diabetes at many med diabetes which Medtronic bought, and is there diabetes arm right now. With diabetes care, particularly those on insulin, there's always been several problems that need to be solved. Insulin was the first big one and what a great discovery that was then how's that insulin delivered? More importantly, what information do people use to manage their diabetes health and figure out how much insulin to deliver. Over time, the way people did that in the beginning was like urine sticks and then finger sticks where people would prick their finger and you would prick your finger and get a number and say, based on that, this is how much insulin I'm going to take or what I'm going to do, which is like watching a basketball game and looking at the score in the middle of the first quarter and deciding who's going to win, it doesn't work that way. I experienced the vision or the experience of continuous glucose monitoring way back in the '90s when I was there and then had the chance to come to Dexcom. But quite honestly, the most difficult problem to solve an intensive insulin therapy is what is the information I'm going to base that decision on. What continuous glucose monitoring gives individuals is the opportunity to look at their glucose all the time. Our numbers go directly to your phone. We want to meet people where they are. They get a new glucose value every five minutes. Then we have alerts and alarms and system features that literally enabled them to be safe and more healthy than they would ever be without it. We've gone from a position, particularly with insulin users way back in the day. I've been in Dexcom now for 12 years full time. It took a long time to get somebody to get CGM to where now we're covered by all major insurance companies where the most affordable reimbursed solution there is for glucose monitoring. Most kids, if they get diagnosed with Type I diabetes now, or insulin, they leave with a Dexcom. They're not going through what everybody went through in the past. This has evolved to really become the standard of care there. We believe we have a lot more runway in other areas going forward. Mary Long: That evolution that you mentioned, I've heard you say before that part of what Dexcom is and has been doing is really building an entirely new industry. Can you explain a bit what you might mean by that? Kevin Sayer: Yeah and again, I'll go back to the beginning. In the beginning, insurance companies really didn't even want to pay for this because it looked like we're adding more costs to the system. We had to go create models to whereby we could get this reimbursed for people to use. We decided as a company that we wanted to take this technology to the phone. We were the first medical device of this nature, of this classification to go directly to a phone. When we went to a phone, all sorts of windows opened up because we enabled people to, for example, to share data with others. We rang the Nasdaq bell a couple of weeks ago and I talked to one of we had a lot of what we call our Dexcom warriors there, people who represent our company, who use our product. One was a young woman who told me a story. She's from Australia and she was asleep in a hotel room at 04:00 in the morning when people broke down her door because her blood glucose had gone low. Her friend in Australia had seen it because she followed the data on the phone, come by the hotel and saved her life. We've created situations and things of that nature to help people in their care. We've also created an industry with respect to interoperability. We share our data with other companies. We enable insulin pumps and algorithm companies to have automated insulin delivery to give people better lives. We share our data with apps with companies, nutrition based, diabetes care based, whatever. If our data can make somebody healthier, we want people to use our data where they can. Every first in our industry has been created by our company. Mary Long: Dexcom is not the only company that makes a CGM device. Your chief rivals are Abbott, which makes the Freestyle Libre and Medtronic. Those are both large like diversified medical device companies. Dexcom, does Dexcom, end of story. How does that singular focus help you and hurt you? Kevin Sayer: I consider it an asset primarily, but let me talk about how it helps us first, that singular focus means we have to be extremely clever and innovative. The list of first I came at you with earlier, going to the phone first, the first interoperate system and our level of accuracy and performance, the reimbursement we've obtained, we have to lead this industry. We can't follow the other guys. We've always prided ourselves on having the best product and that has given us a tremendous advantage over time with respect to accuracy and performance where it's difficult. The things I think about when I think about our competitors quite candidly infrastructure as we look at new geographies go into, for example, we don't have a cardiovascular business in Bulgaria, or pick a country, we have to very selectively pick where we're going to make investments and how we're going to grow international. These other geographies, because we don't have other businesses there. We have grown very methodically, very thoughtfully, very creatively, over time, internationally, and scaled our business that way. It's lack of infrastructure, but we've built it nicely. We've more than doubled the number of employees that we have in the past three years. For example, as we've built infrastructure out again while growing profitably. Mary Long: The latest iteration generation of your CGM device is the G7, and that launched earlier this year. That rollout happened all around the world at the same time. Seems like that was a success. You raise end of your [laughs] guidance after posting your most recent results and are now targeting $3.575- 3.6 billion in revenue, which is about a 23-24% year over year growth. I'd imagine that there's a lot of planning that goes into that launch and also maybe a lot of chaos. What did you learn from that experience? Maybe what will you do differently when the G8 one day comes out? Kevin Sayer: We've learned a lot of things. That's really a good question. Our G6 launch that happened five years earlier, we weren't ready for, we were literally running out of inventory almost on a monthly basis. If you ask my team. We were holding the business together. We're still growing well and we were doing fine. But it was really tough. We plan this launch much better from a supplier and a capacity perspective, and I've had no product shortages whatsoever. We also matured our development process enough to whereby we launched this product in a much more mature manner than other ones. You always have things you can improve when you launch your product. But I think the product was launched maturely and in a very good state. The other thing we learned is about our technology in general. People love our old product because it saves their life. It's been such an integral part of their care that while the other product is smaller and more accurate and reimbursed and affordable, there's emotional difficulty sometimes in switching for people. Because again, we've been front and center in their lives, people are switching out that are on the G6 system. Most of our G7 users are new to Dexcom. They're not G6 switchers. We've been able to access a lot more physicians as far as prescription, 18,000 more physicians in the US have written Dexcom scripts than had written scripts a year ago. Because the new product has so many great features with respect to a smaller size, it's ease of use. The new app is really strong and phenomenal. I think the launch has been very successful and with G8, I think what we've learned is we'll just apply those learnings. Let's make sure the product is ready. Let's make sure it's baked. Let's make sure we identify the features that people need to put into it. I think we did a very good job of identifying what our users we're going to want. Let's figure out what that next level of features is and build on that platform. Mary Long: When you think about the future of Dexcom and future iterations of G7, G8, what have you? You seem to have a really close relationship with patients, with the custom consumers that use your products. How do you source feedback from them and then incorporate that into future iterations of this device? Kevin Sayer: We continuously pulse our customers and ask for their feedback. We monitor social media very closely. The diabetes community is not quiet, they're pretty vocal. In fact, I got some great feedback when we were in New York ringing the bell. We had a dinner. We brought a lot of, again our Dexcom warriors back. We had a luncheon form. I sat at a table to get feedback from an eleven year old, a nine year old and a seven year old. And I said, OK, tell me what you would have us do better. It's really fun to ask the question and they all had really good answers. They want us to make the product last longer and we've committed to going from a end product to a fifteen day product over time. They talked about a couple things in the app they'd like to see. These kids, imagine being seven years old and having to manage taking shots every day or an insulin pump that's giving you insulin. When you ask a seven year old that question, you'd be shocked at the maturity of their answer. I'd like a different adhesive that does X, Y and Z. Okay, we can do that. We ask directly, pulse directly. We spend time with social media. Again, you talked about us being a regulated company. We also have to recognize that whatever we do is regulated and we have to make sure people are safe and it is a wind, we balance all of that. Mary Long:Weight loss drugs have been a hot topic this year. There are plenty of bearers that are saying that this is going to change every industry, not just things that are seemingly related to weight loss drugs, but even airlines are going to change their entire set up. Perhaps unsurprisingly, part of that conversation has involved diabetes companies and companies just like yours. Yet again, you posted this amazing quarter most recently. I think even cited a study that says, well, actually use of these GLP-1, these weight loss drugs, supplements and increases use of CGM products. Can you talk a bit about how you see the future of weight loss drugs interacting with your product? Kevin Sayer: Yeah and look, this drug category is amazing. The results that have been produced have been absolutely amazing. But there's never been a time when people wouldn't need CGM as a result of everything that's been learned. The thing that we talked about was data that we've garnered through very strong data sources. That people who go on these weight loss drugs, like people who have type two diabetes, who are on basal insulin, if you added GLP-1 to their therapy. If you add CGM, their outcomes are better. The outcomes of these people all get better if you add CGM to those therapies across the board, if they're on intensive insulin therapy, basal incent therapy or just somebody with type two diabetes and you add a GLP-1 to what they're already doing because it gives you a real time scorecard, you learn throughout the course of a day. For example, if you're on one of these weight loss drugs, look I can keep my glucose at a pretty steady state because I'm not eating as much. But you also learn very quickly, and a lot of us as executors of our company, we are sensors all the time without diabetes. You learn what specific meals do to your glucose and to your health. It definitely can create a better experience. It can also create better adherence to the drugs. One of the things the payers are concerned about in reimbursing for these drugs, are the patients going to comply? You can tell very quick from a CGM if somebody is complying, because you can see how steady their glucose is and how the spikes are not as big as they used to be before they were on these drugs. I think we can be a great scorecard for this. I think over time we can use the performance of our system combined with other data such as activity data, sleep data, whatever data we can incorporate into our data ecosystem and creating experience that can help people be healthier across the board. I never thought for a minute that these drugs would exclude TGM. I think we can become a vital part of it. We just have to define that, just like we've defined our place in the insulin-using world. Now, Basil's insulin. We'll define our place in this one too and I think we'll do very well. Mary Long: This takes this a step further. But our co founder David Gardner talks a lot about the importance of investing in companies that are building the future you'd like to see. In so many ways, right, Dexcom is building a better future. But ultimately, CGM devices manage diabetes rather than cure or eliminate it. So how does Dexcom fit into this futuristic world in which maybe diabetes doesn't exist? Kevin Sayer: Well, type 1 diabetes isn't going to be affected by these drugs. There could be a cure some day. There are many programs where people are trying to get cures and that would be a tremendous outcome for everybody. Let's be very clear, but at the end of all this, you're going to need a scorecard and people are going to need to see how healthy they are. Even again, if type 2 diabetes is delayed, you learn so much from wearing a CGM. You learn more from wearing a CGM about your metabolic health than almost anything you can do. We believe we can create experiences that fit right along with all of this and as somebody has pre diabetes or for example, gestational diabetes. We had a label, we can now be used in pregnancy. Well, I have grand babies that had a gestational diabetes, I have a gestational diabetes daughter in law, and she was sticking her finger for the first couple of weeks, she called me up, can you give me one of those? It made nine day difference and my twin grand babies are here largely came when they needed to come because she wore a sensor. We have a place across this healthcare spectrum and glucose state is going to be important enough that we'll figure out where to get it in. I think this noise will eventually quiet down and will be an important part of this community. Deidre Woollard: As always, people on the program may have interest in the stocks they talk about, and the Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. I'm Deidre Woollard, thanks for listening. We'll see you tomorrow. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Bill Barker has no position in any of the stocks mentioned. Deidre Woollard has positions in Amazon.com, Dollar General, and Walmart. Mary Long has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Chewy, and Walmart. The Motley Fool recommends DexCom. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-13	WMT	(RTTNews) - Sam's Club, a division of Walmart Inc. (WMT) and a leading membership warehouse club, announced Wednesday plans to reopen its Grapevine, Texas, location in late 2024, after closure due to significant storm damage in December 2022. The revitalized club, situated at 1701 W State Hwy 114, will not only restore convenience to its members but also bring new jobs, innovative services, and a renewed commitment to the Grapevine community. Following extensive renovations, Sam's Club is eager to reintroduce an enhanced shopping experience to its valued members. This initiative will generate new jobs within the Grapevine community, contributing to the overall economic growth and providing valuable career opportunities for local residents. As part of its reopening announcement, Sam's Club will be providing $30,000 through a grant and in-kind charitable donations to support the Grapevine Relief and Community Exchange (GRACE), further strengthening its ties with the Grapevine community. In celebration, Sam's Club is offering the Dallas/Fort Worth market an exclusive discount on new memberships. Potential members can join as a Plus member and get $50 off your next in-club purchase of $50 or more or join as a club member and get $30 off your next in-club purchase of $30 or more. These offers are exclusively available at Dallas/Fort Worth Sam's Clubs and are not redeemable in other markets. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-13	WMT	Below is Validea's guru fundamental report for WALMART INC (WMT). Of the 22 guru strategies we follow, WMT rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields. WALMART INC (WMT) is a large-cap growth stock in the Retail (Grocery) industry. The rating using this strategy is 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. MARKET CAP: PASS STANDARD DEVIATION: PASS TWELVE MINUS ONE MOMENTUM: NEUTRAL NET PAYOUT YIELD: NEUTRAL FINAL RANK: FAIL Detailed Analysis of WALMART INC WMT Guru Analysis WMT Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam. Additional Research Links Top Large-Cap Growth Stocks Factor-Based Stock Portfolios Dividend Aristocrats 2023 High Insider Ownership Stocks Top S&P 500 Stocks About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-13	WMT	Walmart Inc. (NYSE: WMT) is big, to say the least. It is the largest retailer in the world. It's the largest importer of goods in the United States. It is one of the largest consumer discretionary sector companies fiercely competing with Amazon.com Inc. (NASDAQ: AMZN). A strong dollar is a friend to Walmart as it imports goods cheaper and sells for a larger profit in the United States. Walmart is the largest employer in the United States, with 1.6 million workers, and the fourth largest in the world, with 2.3 million global workers. Some might say Walmart falls into the category of "too big to fail ."However, after its recent earnings reaction, investors may be wondering if Walmart has grown too big to prevail. Window dressing accentuates the divergence. While competitors like Target Co. (NYSE: TGT) experienced an 11% price gap that grew to a 21% gain in the following days, Walmart shares gapped down 4.8% on its fiscal Q3 2024 earnings release and proceeded to sell off 10% in the following days despite the S&P 500 index hitting yearly highs. This stark negative correlation is rare as these two retailers tend to move together in lockstep. However, this time of the year can cause portfolio managers to frantically dump the losers and buy the winners in the final window dressing period of the year. It’s worth noting that WMT shares are still up 5% year-to-date (YTD) compared to TGT shares trading down 10.9% YTD. Check out the sector heatmap on MarketBeat. Growth is slowing but still growing. On Nov. 16, 2023, Walmart released its fiscal third-quarter 2024 results for the quarter ending October 2023. The company reported an earnings-per-share (EPS) profit of $1.53 versus consensus analyst estimates for a profit of $1.52, a penny beat. Revenues climbed 5.2% YoY to $160.8 billion, beating analyst estimates of $159.65 billion. Consolidated gross margins rose 32 bps. Comparable sales and e-commerce growth U.S. comparable sales rose 4.9%, led by grocery and health wellness products. E-commerce spiked 24%, led by pickup and delivery. General merchandise grew low single-digit, reflecting softness in discretionary categories like apparel, home and toys. While unseasonal weather caused November sales to go up, Walmart expects sales growth to moderate in Q4 as grocery inflation normalizes to historic levels. Sam's Club U.S. comp sales without fuel rose 3.2%, and e-commerce rose 16% YoY. Raised guidance still below analyst expectations Walmart expects fiscal full-year 2024 EPS of $6.40 to $6.48, up from previous guidance of $6.36 to $6.46 but still shy of the $6.50 consensus analyst estimates. Fiscal full-year 2024 revenues are expected to rise 5% to 5.5%, up from 4% to 4.5% in previous estimates or $641.6 billion to $644.6 billion versus $642.43 billion. Deflation will pressure the company. Walmart CEO Doug McMillon noted that inflation is starting to fall for some grocery items, including chicken, seafood and dairy, but not so much with dry grocery. General merchandise prices are also falling, causing retailers to roll back prices. Consumers will benefit from the effects of deflation, which will put more pressure on the company to sell more products. McMillon stated, "In the U.S., we may be managing through a period of deflation in the months to come, and while that would put more unit pressure on us, we welcome it because it's better for our customers.” Investors didn't like this comment and reacted by selling. Insights on consumers CEO McMillon made many points in a CNBC interview following the earnings release. He emphasized that consumers are price-sensitive right now. Even richer consumers are shopping at Walmart for value. Foot traffic has increased with faster growth for curbside delivery. General merchandise is starting to experience price deflation. Next year could be a deflationary environment, but the company is not bracing for a recession and still expects growth in 2024. Walmart analyst ratings and price targets are at MarketBeat. Walmart peers and competitor stocks can be found with the MarketBeat stock screener. Daily ascending price channel breakdown The daily candlestick chart for WMT illustrates the ascending price channel heading into the earnings as shares hit 52-week highs on the heels of Target's strong earning reaction. However, the sentiment reversed quickly upon the release as shares gapped down nearly 5% and proceeded to continue selling off 10% through the daily 200-period moving average support at $153.63. The daily market structure low (MSL) trigger formed at $155.27 but could not trigger. The daily relative strength index (RSI) plunged from the 70-band towards the 30-band. Pullback support levels are at $150.24, $145.50, $141.84 and $138.00. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-13	WMT	By Nick Carey and Paul Lienert LONDON/DETROIT, Dec 13 (Reuters) - Electric vehicle charging companies in Europe and the U.S. have started fighting over the best spots for fast public chargers, and industry watchers predict fresh rounds of consolidation as more big investors enter the fray. Many current EV charger companies are backed by long-term investors, and more are expected to launch. Looming bans in various countries on cars powered by fossil fuels have made the sector more attractive to infrastructure investors like M&G's MNG.L Infracapital and Sweden's EQT. "If you look at our customers, it's like a land grabbing game now," Tomi Ristimaki, CEO of Finnish EV charger manufacturer Kempower KEMPOWR.HE said. "Who gets the best locations now can guarantee electricity sales in the coming years." A Reuters analysis showed there are more than 900 EV charging companies globally. The sector has attracted over $12 billion in venture capital funding since 2012, according to PitchBook. As big investors fund more consolidation, "the fast-charging landscape will look pretty different from the landscape that exists today," said Michael Hughes, chief revenue and commercial officer for ChargePoint CHPT.N, one of the largest suppliers of EV charging equipment and software. Corporations from Volkswagen VOWG_p.DE to BP BP.L and E.ON EONGn.DE have invested heavily in the industry, which has seen 85 acquisitions since 2017. See graphic: https://tmsnrt.rs/3QJRvKz There are more than 30 fast-charger operators in the UK alone. Two new ones launched last month: Australia’s Jolt, backed by BlackRock's infrastructure fund, and Zapgo, which has received 25 million pounds ($31.4 million) in funding from Canadian pension fund OPTrust. In the U.S. market, Tesla TSLA.O is the biggest player, but more convenience stores and fuel stations will soon join the fray and the number of U.S. fast-charging networks will more than double to 54 in 2030 from 25 in 2022, said Loren McDonald, CEO of San Francisco-based research firm EVAdoption. See graphic: https://tmsnrt.rs/3we1njJ It can take four years for a properly placed EV charging station to become profitable once utilization hits around 15%. Charger companies complain red tape in Europe is slowing expansion. Still, the sector is viewed as a good bet by long-term infrastructure investors like Infracapital, which owns Norway's Recharge and has invested in Britain's Gridserve. "With the right locations, long-term investments in (charging companies) absolutely make sense," said Christophe Bordes, managing director at Infracapital. ChargePoint's Hughes believes larger players will start looking beyond existing sites for new real estate, purpose-built for mega-facilities with 20 or 30 fast-charge dispensers, surrounded by retailers and amenities. "There's a race for space," he said, "but it will take longer than anybody expects to find, build and enable these new sites for the next generation of fast charging." Competition for the best sites is becoming fierce and site hosts can switch between operators before settling on a winner. "We like to say there's no such thing as a dead deal when you're talking to a site host," Blink Charging BLNK.O CEO Brendan Jones said. "LOGOS WILL BE DIFFERENT" Firms are also competing for exclusive contracts with hosts. For instance, UK's InstaVolt - owned by EQT - has deals with companies like McDonald's MCD.N to build charging stations at their locations. "If you can win that partnership, it's yours until you blow it," InstaVolt CEO Adrian Keen said. With EQT's "deeper pockets," InstaVolt plans 10,000 chargers in the UK by 2030, has active chargers in Iceland, and has launched operations in Spain and Portugal, Keen said. Consolidation could start in the next year or so, he added. "That might open up opportunities in the markets we're in, but also open the door to a new market for us," Keen said. Utility EnBW's EBKG.DE charging unit has 3,500 EV charge points in Germany, about 20% of that market. It is investing 200 million euros ($215 million) annually to hit 30,000 charging points by 2030, leaning on local staff to fend off competition for sites. The unit has also formed charging network partnerships in Austria, the Czech Republic and northern Italy, vice president of sales Lars Walch said. While consolidation is coming, there will still be room for multiple operators, Walch said. Norway, a leading EV market, has suffered from short-term "over-deployment" this year as companies raced to build out charging stations, Recharge CEO Hakon Vist said. The market added 2,000 new charge points to hit a total of 7,200, but EV sales were down 2.7% through October this year. Recharge has around 20% market share in Norway, just behind Tesla. "Some companies will find they're too small to meet customers' requirements and leave or sell," Vist said. Others are launching companies knowing they could acquire others or be acquired themselves. New UK entrant, OPTrust-backed Zapgo plans to target under-served parts of England's Southwest, offering landlords a slice of charging revenue to get good locations. It plans 4,000 chargers by 2030, said CEO Steve Leighton, who predicted consolidation "will all come down to money" later this decade. "The funders who've got the deepest pockets will be running that consolidation," Leighton said, adding OPTrust "is big, but one of the larger infrastructure funds might come along and want to pick Zapgo up at some point." The U.S. market will shift as convenience store chains like Circle K and Pilot Company, and retail giants like Walmart WMT.N invest massively in charging stations, EVAdoption's McDonald said. "Like all industries started by a bunch of small startups, over time the big guys jump in and ... they consolidate," McDonald said. "At the end of this decade, the logos are going to be very different." ($1 = 0.9307 euros) ($1 = 0.7967 pounds) Electric Vehicle Fast Charging Networks Electric Vehicle Fast Charging Networks https://tmsnrt.rs/3R00Mwk Venture investment in EV charging startups Venture investment in EV charging startups https://tmsnrt.rs/3QObzvb (Reporting By Nick Carey and Paul Lienert, editing by Ben Klayman and David Gregorio) ((nick.carey@thomsonreuters.com; +44 7385 414 954;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-12	WMT	By Abigail Summerville NEW YORK, Dec 12 (Reuters) - Six U.S. lawmakers wrote to the Federal Trade Commission (FTC) on Monday expressing their opposition to the proposed $24.6-billion acquisition of grocery chain operator Albertsons by peer Kroger Co KR.N, according to a letter reviewed by Reuters. Kroger and Albertsons have said they expect to complete their merger by early 2024, once the FTC completes its antitrust review. Senators Elizabeth Warren, Mazie Hirono, Bernie Sanders and Cory Booker and representatives Summer Lee and Alexandria Ocasio-Cortez said in the letter that Kroger's proposal to divest 413 stores to C&S Wholesale Grocers would not address harms to consumers, workers, and the grocery industry if the merger is allowed. The lawmakers are arguing that store divestitures as a remedy to mega mergers often fail to maintain competitive conditions, because companies have an incentive to ensure that the businesses they spin off do not succeed. C&S, which secured financial backing from SoftBank Group Corp 9984.T for its deal with Kroger, operates primarily as a supplier rather than a grocery-store operator. It currently has around two dozen stores under the Grand Union and Piggly Wiggly brands. Other lawmakers, including congressmen Greg Landsman, Brian Fitzpatrick and Josh Gottheimer have sent letters to the FTC in support of the deal. Kroger and Albertsons have said the deal will allow them to better compete with large, non-union players and achieve lower prices. Kroger also said that it will not close any stores, distribution centers or manufacturing facilities or lay off any frontline associates as a result of the merger. The FTC declined to comment. Kroger and Albertsons did not immediately respond to requests for comment. (Reporting by Abigail Summerville in New York; Editing by Sharon Singleton) ((abigail.summerville@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-12	WMT	By Abigail Summerville NEW YORK, Dec 12 (Reuters) - Six U.S. lawmakers wrote to the Federal Trade Commission (FTC) on Monday expressing their opposition to the proposed $24.6-billion acquisition of grocery chain operator Albertsons by peer Kroger Co KR.N, according to a letter reviewed by Reuters. Kroger and Albertsons have said they expect to complete their merger by early 2024, once the FTC completes its antitrust review. Senators Elizabeth Warren, Mazie Hirono, Bernie Sanders and Cory Booker and representatives Summer Lee and Alexandria Ocasio-Cortez said in the letter that Kroger's proposal to divest 413 stores to C&S Wholesale Grocers would not address harms to consumers, workers, and the grocery industry if the merger is allowed. The lawmakers are arguing that store divestitures as a remedy to mega mergers often fail to maintain competitive conditions, because companies have an incentive to ensure that the businesses they spin off do not succeed. C&S, which secured financial backing from SoftBank Group Corp 9984.T for its deal with Kroger, operates primarily as a supplier rather than a grocery-store operator. It currently has around two dozen stores under the Grand Union and Piggly Wiggly brands. Other lawmakers, including congressmen Greg Landsman, Brian Fitzpatrick and Josh Gottheimer have sent letters to the FTC in support of the deal. “Albertsons Cos. merging with Kroger will expand competition, lower prices, protect union jobs, and enhance customers’ shopping experience,” a representative for Albertsons said in a statement. The only parties that would benefit if the deal is blocked would be Amazon, Walmart and other large, non-union retailers, whereas a combined Kroger and Albertsons would ensure that neighborhood supermarkets can better compete with these retailing giants, the representative continued. Kroger has said that it will not close any stores, distribution centers or manufacturing facilities or lay off any frontline associates as a result of the merger. (Reporting by Abigail Summerville in New York; Editing by Sharon Singleton and Franklin Paul) ((abigail.summerville@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-12	WMT	Below is Validea's guru fundamental report for WALMART INC (WMT). Of the 22 guru strategies we follow, WMT rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields. WALMART INC (WMT) is a large-cap growth stock in the Retail (Grocery) industry. The rating using this strategy is 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. MARKET CAP: PASS STANDARD DEVIATION: PASS TWELVE MINUS ONE MOMENTUM: NEUTRAL NET PAYOUT YIELD: NEUTRAL FINAL RANK: FAIL Detailed Analysis of WALMART INC WMT Guru Analysis WMT Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam. Additional Research Links Top NASDAQ 100 Stocks Factor-Based ETF Portfolios Harry Browne Permanent Portfolio Ray Dalio All Weather Portfolio High Shareholder Yield Stocks About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-11	WMT	To become a "Dividend Aristocrat," a dividend paying company must accomplish an incredible feat: consistently increase shareholder dividends every year for at least 20 consecutive years. Companies with this kind of track record tend to attract a lot of investor attention — and furthermore, "tracking" funds that follow the Dividend Aristocrats Index must own them. With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets. But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. Which means, if the analysts are correct, these are five dividend growth stocks that could produce capital gains in addition to their growing dividend payments. In the first table below, we present the five stocks. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented. STOCK RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET Albemarle Corp. (Symbol: ALB) $124.51 $196.59 57.89% Exxon Mobil Corp (Symbol: XOM) $99.17 $129.00 30.07% Walmart Inc (Symbol: WMT) $150.13 $180.02 19.91% Brown-Forman Corp (Symbol: BF.B) $55.70 $65.86 18.25% Procter & Gamble Company (Symbol: PG) $145.16 $167.06 15.08% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential: STOCK DIVIDEND YIELD % UPSIDE TO ANALYST TARGET IMPLIED TOTAL RETURN POTENTIAL Albemarle Corp. (Symbol: ALB) 1.29% 57.89% 59.18% Exxon Mobil Corp (Symbol: XOM) 3.83% 30.07% 33.9% Walmart Inc (Symbol: WMT) 1.52% 19.91% 21.43% Brown-Forman Corp (Symbol: BF.B) 1.56% 18.25% 19.81% Procter & Gamble Company (Symbol: PG) 2.59% 15.08% 17.67% Another consideration with dividend growth stocks is just how much the dividend is growing. We looked up the trailing twelve months worth of dividends shareholders of each of the above five companies have collected, and then also looked up the same number for the prior trailing twelve months. This gives us a rough yardstick to see how much the dividend has grown, from one trailing twelve month period to another. STOCK PRIOR TTM DIVIDEND TTM DIVIDEND % GROWTH Albemarle Corp. (Symbol: ALB) $1.575 $1.595 1.27% Exxon Mobil Corp (Symbol: XOM) $3.55 $3.68 3.66% Walmart Inc (Symbol: WMT) $2.24 $2.28 1.79% Brown-Forman Corp (Symbol: BF.B) $0.773 $0.836 8.15% Procter & Gamble Company (Symbol: PG) $3.609 $3.736 3.52% These five stocks are part of our full Dividend Aristocrats List. The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com. Get the latest Zacks research report on BF.B — FREE Get the latest Zacks research report on PG — FREE Dividend Growth Stocks: 25 Aristocrats » Also see: ANW YTD Return WMK Videos Funds Holding JPEF The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-11	WMT	InvestorPlace - Stock Market News, Stock Advice & Trading Tips If the American consumer is resilient in 2023, which stock should you buy? You’re probably thinking of Amazon (NASDAQ:AMZN) or Walmart (NYSE:WMT). Yet, there’s an under-the-radar pick that’s worth your attention and investable capital. I invite you to take a closer look at eBay (NASDAQ:EBAY) stock today, especially if you have a contrarian streak. Sure, it requires courage to risk your money on an unloved company like eBay. However, if you’re serious about buying low and selling higher, then you’ll have to look outside of the “Magnificent Seven” market darlings. With that in mind, let’s see if eBay checks the necessary boxes for selective investors. A Famous TV Personality Says EBAY Stock Is ‘Done’ I not among the group of “Cramer fader” traders who purposely do the opposite of everything that Mad Money host Jim Cramer recommends. However, I strongly disagree with Cramer’s stance on eBay. Prior to Black Friday and Cyber Monday, Cramer declared that EBAY stock is “done” (or more precisely, that he’s “done” with eBay). As a contrarian, I start to get interested when commentators throw in the towel on a particular asset. Was it reasonable for Cramer to (per TheStreet) cite “weak consumer demand” as a reason to be “done” with eBay? Data from Adobe Analytics seems to contradict Cramer’s concern about the U.S. consumer. Reportedly, American consumers spent a whopping $9.8 billion online on Black Friday this year. That’s up 7.5% year over year. U.S. consumers spent $12.4 billion online on Cyber Monday, up 9.6% year over year. Amazon’s top line will certainly benefit from this, but why shouldn’t it bode well for eBay, too? And frankly, despite Cramer’s declaration, I’m just not seeing “weak consumer demand.” eBay’s Value-and-Yield Combo Besides, even prior to Black Friday and Cyber Monday, eBay wasn’t in any real trouble. The company’s third-quarter 2023 GAAP net revenue grew 5% year over year, which is not spectacular, but not too bad. More impressively, eBay’s GAAP earnings flipped from a 13-cent loss per diluted share in the year-earlier quarter to income (not a loss) of $2.46 per diluted share in Q3 2023. Moreover, eBay appears to be relatively underpriced or at least reasonably priced. Notably, eBay’s GAAP-measured trailing 12-month price-to-earnings ratio of 8.27x is roughly half of the sector median P/E ratio of 16.47x. On top of all that, eBay pays a forward annual dividend yield of 2.4%. This ought to appeal to passive income investors, as the consumer cyclical sector average dividend yield is around 1%. Hence, eBay offers a powerful combination of value and yield, just in time for the December holidays. EBAY Stock: Ignore the ‘FUD’ All of this just goes to show that when stocks trade near their 52-week lows, some commentators become wary while others see opportunities. Instead of succumbing to the “FUD” (fear, uncertainty and doubt), you can conduct your due diligence on eBay. With all due respect to Cramer, I’m not “done” with EBAY stock, not even close. The American consumer appears to be quite resilient now, and eBay’s quarterly results weren’t bad at all. Consequently, for a compelling value-and-yield holiday-season combo, consider a share position in eBay today. On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets. More From InvestorPlace The #1 AI Investment Might Be This Company You’ve Never Heard Of Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post eBay Stock: A December Stocking Stuffer You Must Not Ignore appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-10	WMT	Below is Validea's guru fundamental report for WALMART INC (WMT). Of the 22 guru strategies we follow, WMT rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields. WALMART INC (WMT) is a large-cap growth stock in the Retail (Grocery) industry. The rating using this strategy is 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. MARKET CAP: PASS STANDARD DEVIATION: PASS TWELVE MINUS ONE MOMENTUM: NEUTRAL NET PAYOUT YIELD: NEUTRAL FINAL RANK: FAIL Detailed Analysis of WALMART INC WMT Guru Analysis WMT Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam. Additional Research Links Top NASDAQ 100 Stocks Factor-Based ETF Portfolios Harry Browne Permanent Portfolio Ray Dalio All Weather Portfolio High Shareholder Yield Stocks About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-08	WMT	Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR Portfolio S&P 500 Value ETF (Symbol: SPYV) where we have detected an approximate $828.3 million dollar inflow -- that's a 4.6% increase week over week in outstanding units (from 404,200,000 to 422,750,000). Among the largest underlying components of SPYV, in trading today Berkshire Hathaway Inc New (Symbol: BRK.B) is off about 0.2%, Salesforce Inc (Symbol: CRM) is up about 0.7%, and Walmart Inc (Symbol: WMT) is lower by about 0.5%. For a complete list of holdings, visit the SPYV Holdings page » The chart below shows the one year price performance of SPYV, versus its 200 day moving average: Looking at the chart above, SPYV's low point in its 52 week range is $37.925 per share, with $44.91 as the 52 week high point — that compares with a last trade of $44.82. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ». Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs. Click here to find out which 9 other ETFs had notable inflows » Also see: Services Stocks Hedge Funds Are Selling APGN shares outstanding history HLNE Options Chain The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-08	WMT	Below is Validea's guru fundamental report for WALMART INC (WMT). Of the 22 guru strategies we follow, WMT rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields. WALMART INC (WMT) is a large-cap growth stock in the Retail (Grocery) industry. The rating using this strategy is 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. MARKET CAP: PASS STANDARD DEVIATION: PASS TWELVE MINUS ONE MOMENTUM: NEUTRAL NET PAYOUT YIELD: NEUTRAL FINAL RANK: FAIL Detailed Analysis of WALMART INC WMT Guru Analysis WMT Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam. Additional Research Links Top Large-Cap Growth Stocks Factor-Based Stock Portfolios Dividend Aristocrats 2023 High Insider Ownership Stocks Top S&P 500 Stocks About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-08	WMT	InvestorPlace - Stock Market News, Stock Advice & Trading Tips In recent days, many top hydrogen stocks have tumbled due to the leak of the conditions that the Biden administration is thinking of forcing firms to meet in order to receive the hydrogen tax credit. According to the leaked draft from the Treasury Department, for hydrogen producers to qualify for the credit, they would have to create their fuel using renewable energy projects launched within the previous three years, Bloomberg reported. One source was quite fatalistic about the criteria. “If true, the Biden Administration’s proposed strategy for implementing these provisions will fail to get this new industry off the ground,” Jason Grumet, the CEO of the American Clean Power Association, stated. But, in my view, the rules will make life more difficult but not impossible for hydrogen producers. After all, many large renewable energy projects are being built every day in the U.S., and hydrogen producers can use wires and cables to tap into them. Given these points, I believe the recent sharp declines of the top hydrogen stocks are overdone. Here are three great names to buy on weakness. Plug Power (PLUG) Source: T. Schneider / Shutterstock.com Even before hydrogen stocks’ recent retreat on worries about whether hydrogen producers will be able to obtain tax credits, Plug Power (NASDAQ:PLUG) stock had retreated tremendously. That’s because the company reported weaker-than-expected third-quarter results and had warned that it may not be able to stay in business “without having to liquidate a portion of its assets and/or restructure its obligations,” Barron’s reported, citing an accounting expert. But Plug’s Q3 miss was largely caused by hydrogen shortages in North America that should soon ease. What’s more, PLUG CEO Andy Marsh called the warning an “accounting technicality,” explaining that the company has many methods of raising the funds it needs to stay in business and keep making progress toward becoming a green hydrogen superpower. Further, as I’ve noted in past columns, PLUG has many upcoming positive catalysts. Among these catalysts are the imminent launch of multiple green hydrogen plants that will greatly lower its costs and deals to start supplying Walmart (NYSE:WMT) and Amazon (NASDAQ:AMZN) with large amounts of the fuel in 2025. Linde (LIN) Source: nitpicker / Shutterstock.com Linde’s (NASDAQ:LIN) hydrogen business is rapidly expanding, as the company reported on Dec. 5 that it had raised the production capacity of its liquid hydrogen plant in Alabama to “up to 30 tons per day.” LIN indicated it will be able to easily sell all of the liquid hydrogen the plant produces, stating that “the plant will meet increasing demand for hydrogen from Linde’s existing and new customers.” And in January, the company reported it would increase the production capacity of its green hydrogen plant in California to meet the growing demand for the fuel for transportation purposes. LIN, which is already solidly profitable, looks poised to get a big boost from demand for the new hydrogen supplies it’s bringing online. Air Products and Chemicals (APD) Source: Andy Borysowski / Shutterstock.com Another very profitable company poised to get a big boost from the hydrogen boom is Air Products and Chemicals (NYSE:APD). Calling itself “the world’s leading hydrogen supplier,” APD noted it “owns and operates over 100 hydrogen plants producing more than seven million kilograms (three billion standard cubic feet) per day of hydrogen.” The company is planning to build a huge $7 billion hydrogen plant in Louisiana and another such plant in the Netherlands. Both facilities will use natural gas to create hydrogen fuel, but both facilities will also use carbon capture technologies to limit their carbon footprints. APD stock has a rather attractive forward price-earnings ratio of 20, and analysts, on average, expect its earnings per share to jump to $14.20 next year, up from $11.51 in 2022. On the date of publication, Larry Ramer held a long position in PLUG. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been PLUG, XOM and solar stocks. You can reach him on Stocktwits at @larryramer. More From InvestorPlace Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In. The #1 AI Investment Might Be This Company You’ve Never Heard Of The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post Harnessing Hydrogen: 3 Companies Leading the Way appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-08	WMT	Retail powerhouse Walmart (NYSE:WMT) is widely known for its affordable products and everyday essential offerings. With 50 consecutive years of dividend increases under its belt, the company has also built a reputation as a reliable dividend player, solidifying its place as a Dividend Aristocrat. Apart from offering a steady income stream, WMT is currently loved by Wall Street analysts, as it sports a Strong Buy consensus rating. Reasons to Love WMT Stock Walmart's strong core retail business, coupled with the company's strategic investments in e-commerce and digital platforms, is opening up new avenues for growth. This diversification is expected to further strengthen Walmart's financial position and potentially support dividend growth going forward. Furthermore, the company has been setting up Walmart Health locations with the aim of providing low-cost healthcare services to its customers. With most of the Walmart stores located in prime locations, this expansion may help the company benefit from a huge growth opportunity in the healthcare sector. According to WMT’s recent earnings report, the company delivered better-than-expected third-quarter results. The company’s U.S. comparable sales rose by 4.9%, and e-commerce sales jumped by 24% on the back of strength in pickup and delivery. Buoyed by strong Q3 and holiday momentum, WMT raised Fiscal 2024 sales expectations to 5% to 5.5% for Fiscal Year 2024 from the earlier guidance of 4% to 4.5%. It is worth highlighting that hedge funds are also optimistic about Walmart, as they bought 579,900 shares of WMT stock last quarter. Overall, Walmart has a Very Positive Hedge Fund Confidence Signal at present. Is it Good to Buy Walmart Stock? Walmart has received 25 Buys and five Hold recommendations for a Strong Buy consensus rating. Further, WMT stock’s 12-month average price target of $180.79 implies 18.58% upside potential from current levels. The Takeaway Strong growth prospects, an impressive dividend growth history, and sound financial positions make WMT an attractive choice for those seeking consistent income. Additionally, the positive sentiment from analysts and hedge funds adds to the overall confidence in the stock. Disclosure The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-07	WMT	InvestorPlace - Stock Market News, Stock Advice & Trading Tips The retail sector has faced multiple challenges in the current year. Some of the headwinds include inflation, supply chain disruptions, and macroeconomic concerns. Additionally, tight monetary policies have impacted consumer spending trends to some extent. Amidst these headwinds, the valuation of some of the best retail stocks looks attractive. I believe that the next year is likely to be better on a relative basis. It’s true that global slowdown concerns are significant. However, there is a strong case for multiple rate cuts to boost investment and consumption spending. Therefore, attractively valued retail stocks are likely to trend higher in the coming quarters. When I am talking about 100% returns during the year, it’s unlikely for blue-chip retail stocks like Walmart (NYSE:WMT) and Costco Wholesale (NASDAQ:COST), among others. However, there are relatively smaller names that can surge higher. Also, since most companies are pursuing omnichannel sales, I am looking at traditional retailers as well as e-commerce stocks. Let’s discuss three names that are likely to surge next year. Miniso Group (MNSO) Source: shutterstock.com/Hendrick Wu Miniso Group (NYSE:MNSO) stock has delivered returns of almost 100% for year-to-date. I expect MNSO stock to double again from current levels in the next year. It’s worth noting that even after a meaningful rally, the stock trades at a forward price-earnings ratio of 23. A dividend yield of roughly 2% is also attractive and among the reasons to be bullish on the stock. From a growth perspective, Miniso is among the best retail stocks to buy. For Q1 2024, the Company reported revenue growth of 36.7% on a year-on-year basis to $519.6 million. For the same period, adjusted EBITDA increased by 52.8% on a year-on-year basis to $139 million. Therefore, growth has been associated with healthy EBITDA margin expansion. As of Q1 2024, Miniso reported a total of 6,115 lifestyle stores. The number of stores increased by 819 over the past year. At this pace and with an asset-light model, I expect robust growth to be sustained. This will support MNSO stock upside coupled with healthy dividend growth. Coupang (CPNG) Source: Ki young / Shutterstock.com I would include online retail or e-commerce stocks in the list of names that I am bullish for in 2024. Coupang(NYSE:CPNG) stock looks deeply undervalued after remaining sideways for year-to-date. Even with the recent Q3 earnings miss, I believe that CPNG stock has a meaningful upside. My view is underscored by the fact that 15 analysts offering a 12-month forward price forecast for CPNG stock have a median price target of $21. This would imply an upside of 38% from current levels. However, the most bullish analyst has a price target of $30. That would imply an upside of almost 100%. For Q3 2023, Coupang reported revenue growth of 21% on a year-on-year basis to $6.2 billion. For the same period, the adjusted EBITDA margin was at 3.9%. Further, Coupang reported a 14% year-on-year growth in active customers to 20 million. As average revenue per user swells, there is visibility for revenue growth. It’s worth noting that Coupang has reported operating and free cash flow of $2.6 billion and $1.9 billion for the trailing twelve months. I expect margin expansion and cash flow upside to sustain on the back of operating leverage. Sea Limited (SE) Source: Postmodern Studio / Shutterstock.com Sea Limited (NYSE:SE) stock has continued to remain in a downtrend. However, I believe that SE stock is attractive at the current level of $39 per share. It’s worth noting that Sea Limited is diversified across digital gaming, e-commerce, and digital financial services. However, the e-commerce segment can be a potential cash flow machine in the coming years. The first reason to be bullish on Sea Limited is exposure to high-growth markets of Southeast Asia, Latin America, and other emerging Asian countries. I expect stellar growth on the back of low e-commerce penetration in these markets. Specific to the retail e-commerce sector, Sea reported revenue of $2.2 billion for Q3 2023. On a year-on-year basis, revenue increased by 16%. However, EBITDA level losses have been sustained and that’s a potential concern. I believe that Sea Limited is positioned to narrow its EBITDA losses in the coming quarters. Operating leverage coupled with lower inflationary pressure is likely to support margins. At the same time, Sea Limited has a healthy cash buffer of $7.9 billion. This is likely to help in supporting aggressive investments for growth. On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector. More From InvestorPlace The #1 AI Investment Might Be This Company You’ve Never Heard Of Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post These 3 Promising Retail Stocks to Buy for 100% Returns in 2024 appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-07	WMT	Below is Validea's guru fundamental report for WALMART INC (WMT). Of the 22 guru strategies we follow, WMT rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields. WALMART INC (WMT) is a large-cap growth stock in the Retail (Grocery) industry. The rating using this strategy is 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. MARKET CAP: PASS STANDARD DEVIATION: PASS TWELVE MINUS ONE MOMENTUM: NEUTRAL NET PAYOUT YIELD: NEUTRAL FINAL RANK: FAIL Detailed Analysis of WALMART INC WMT Guru Analysis WMT Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam. Additional Research Links Top Large-Cap Growth Stocks Factor-Based Stock Portfolios Dividend Aristocrats 2023 High Insider Ownership Stocks Top S&P 500 Stocks About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-07	WMT	By Granth Vanaik Dec 7 (Reuters) - Dollar General DG.N posted a smaller-than-expected drop in quarterly sales and beat profit estimates on Thursday, as more shoppers turned to its stores for cheaper groceries and other essentials amid sticky inflation pinching household budgets. Shares of the company, down 45% so far this year, were up more than 4% in premarket trading after it also reaffirmed its full-year sales and profit forecasts. Dollar General, which in October re-appointed former CEO Todd Vasos for a second stint, in a move to stabilize its struggling business, has already trimmed its annual sales and profit forecasts for a third time this year. After several earnings misses and lowered forecasts, Dollar General reiterating its outlook suggests that the company is finally reaching a bottom for earnings for 2023, Truist Securities analyst Scot Ciccarelli wrote in a note. Discount store operators in recent quarters have been struggling with a shift in shopper preferences for essentials over general merchandise, while they face a stiff competition from larger retailers such as Walmart WMT.N. To counter this, Dollar General has been taking measures to keep prices low on everyday staples as well as offering discounts and promotions to clear excess stock. Last week, rival Dollar Tree DLTR.O trimmed its annual sales forecast on weaker spending from lower-income households. Dollar General's total merchandise inventories in the third quarter declined 1.8% year-on-year. But gross margins fell 147 basis points, as it grappled with a rise in retail shrink, where inventory is either lost, damaged or stolen. Same-store sales fell 1.3% for the quarter, compared with LSEG estimates of a 2.08% drop. It posted a per-share profit of $1.26, versus analysts' expectations of $1.19. (Reporting by Granth Vanaik in Bengaluru; Editing by Shilpi Majumdar) ((Granth.Vanaik@thomsonreuters.com \| X : https://twitter.com/Vanaik_Granth;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-06	WMT	Walmart (WMT) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock. Shares of this world's largest retailer have returned -6% over the past month versus the Zacks S&P 500 composite's +5.1% change. The Zacks Retail - Supermarkets industry, to which Walmart belongs, has lost 5.1% over this period. Now the key question is: Where could the stock be headed in the near term? Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision. Earnings Estimate Revisions Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock. Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements. For the current quarter, Walmart is expected to post earnings of $1.63 per share, indicating a change of -4.7% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.2% over the last 30 days. The consensus earnings estimate of $6.44 for the current fiscal year indicates a year-over-year change of +2.4%. This estimate has changed +0.2% over the last 30 days. For the next fiscal year, the consensus earnings estimate of $6.99 indicates a change of +8.5% from what Walmart is expected to report a year ago. Over the past month, the estimate has changed -0.3%. With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Walmart. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Projected Revenue Growth While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth. In the case of Walmart, the consensus sales estimate of $170.25 billion for the current quarter points to a year-over-year change of +3.8%. The $644.5 billion and $665.73 billion estimates for the current and next fiscal years indicate changes of +5.4% and +3.3%, respectively. Last Reported Results and Surprise History Walmart reported revenues of $160.8 billion in the last reported quarter, representing a year-over-year change of +5.2%. EPS of $1.53 for the same period compares with $1.50 a year ago. Compared to the Zacks Consensus Estimate of $159.49 billion, the reported revenues represent a surprise of +0.83%. The EPS surprise was 0%. Over the last four quarters, Walmart surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period. Valuation Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects. While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price. The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued. Walmart is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade. Conclusion The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Walmart. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term. Zacks Reveals ChatGPT "Sleeper" Stock One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion. As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Walmart Inc. (WMT) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-06	WMT	With Black Friday and Cyber Monday behind us, it's time to focus on a festive and lucrative time of year - Hanukkah, which starts at sundown on Thursday. The best stocks to buy on Hanukkah will be the ones that provide value and growth year-round but can also get a nice boost during the holiday shopping season. During these troubling times, we can still dust off the menorah, celebrate with family, and honor our traditions. At the same time, we can consider a variety of opportunities to grow our portfolios with three Hanukkah-themed investments that could gift us with profits throughout 2024. Mattel (NASDAQ:MAT) Shoppers are spending huge quantities of money on Hanukkah gifts this holiday season. Sure, they already bought gifts for children on Black Friday and Cyber Monday, but not everyone planned their shopping ahead of time. Besides, Hanukkah requires not just one gift, but eight of them, so don't assume that the toy-buying spree is over yet. Two giant toy manufacturers that should generate powerful profits in December are Hasbro (NASDAQ:HAS) and Mattel. To hedge your bets and diversify your portfolio a bit, you could consider a share position in both companies. Yet, a head-to-head comparison leans toward Mattel over Hasbro. As we'll see in a moment, Mattel is heavily favored by the analyst community. Meanwhile, analysts generally consider Hasbro stock a Moderate Buy, which isn't bad, but it's not anything to write home about. Mattel, in contrast, looks like a huge potential winner because of Barbie's recent resurgence. Kids and adults flocked to the Barbie movie, and this translated to a bump in quarterly doll sales. So, MAT stock could be a high-growth runner as parents scramble to get last-minute gifts for their kids, and maybe even for themselves as well. What is the Price Target for Mattel Stock? On TipRanks, MAT is a Strong Buy based on eight unanimous Buy ratings assigned in the past three months. The average Mattel stock price target is $24.14, implying 27.25% upside potential. Hershey (NYSE:HSY) I must admit that one of my favorite things about Hanukkah has always been those foil-wrapped chocolate coins. Sure, they're available online year-round, but Hanukkah gives me an excuse to unwrap and eat them to my heart's content. Thinking of this turns my attention to chocolate makers as a possible investment. I've heard it said that companies like Cadbury chocolate manufacturer Mondelez International (NASDAQ:MDLZ) and Hershey tend to be recession-proof, or at least recession-resistant. Hence, it's fine to consider both of these companies, but I'm picking Hershey stock as my favorite for several reasons. First and foremost, I checked Hershey's earnings and revenue history chart and observed consistent growth in the company's revenue and earnings. Speaking of earnings, Hershey has a terrific track record of beating Wall Street's consensus quarterly EPS forecasts. On top of all that, Hershey offers a nice gift every three months in the form of dividend distributions. Specifically, the company's dividend yield of 2.33% exceeds the sector average yield, so I invite you to consider collecting some tasty dividends with HSY stock. What is the Price Target for Hershey Stock? On TipRanks, HSY is a Moderate Buy based on six Buys and 11 Hold ratings given in the past three months. The average Hershey stock price target is $213.65, implying 12.92% upside potential. Walmart (NYSE:WMT) Other ideas for Hanukkah stocks might include candle makers or olive oil producers since we light the menorah with olive oil. However, the businesses that manufacture these products aren't typically listed on a major U.S. stock exchange. On the other hand, legions of shoppers will buy these items at the big-box behemoth, Walmart. It's possible to purchase candles, olive oil, and other Hanukkah-associated goods online, but many people would prefer to simply pick them up locally at Walmart. Why fight this trend as an investor? Moreover, Walmart usually beats analysts' quarterly consensus EPS estimates and is known to slowly but surely increase its dividend payouts. Also, bear in mind that Walmart owns Sam's Club, where shoppers look for prime deals for Hanukkah and throughout the year. Like Hershey stock, Walmart stock is generally low-volatility and somewhat recession-resistant. Therefore, I'm considering a share stake in Walmart for December as well as for the coming year. What is the Price Target for Walmart Stock? On TipRanks, WMT comes in as a Strong Buy, based on 25 Buys and five Hold ratings. The average Walmart stock price target is $180.79, implying 17.4% upside potential. The Takeaway From Mattel to Hershey and even Walmart, the brands that remain strong during the eight days of Hanukkah are resilient in all seasons. It just goes to show that a solid business can offer value and growth regardless of the time of year. Nonetheless, Hanukkah is a time for joy and reflection, and it's also a great time to re-evaluate your portfolio's holdings. Feel free to light that first candle, then, and consider adding a few shares of MAT, HSY, and WMT stock for the holidays and beyond. Disclosure The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-06	WMT	Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Capital One Financial Corp (Symbol: COF), where a total volume of 24,293 contracts has been traded thus far today, a contract volume which is representative of approximately 2.4 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 102.8% of COF's average daily trading volume over the past month, of 2.4 million shares. Particularly high volume was seen for the $130 strike call option expiring January 19, 2024, with 5,216 contracts trading so far today, representing approximately 521,600 underlying shares of COF. Below is a chart showing COF's trailing twelve month trading history, with the $130 strike highlighted in orange: Avis Budget Group Inc (Symbol: CAR) saw options trading volume of 3,799 contracts, representing approximately 379,900 underlying shares or approximately 101.8% of CAR's average daily trading volume over the past month, of 373,185 shares. Especially high volume was seen for the $200 strike call option expiring January 19, 2024, with 700 contracts trading so far today, representing approximately 70,000 underlying shares of CAR. Below is a chart showing CAR's trailing twelve month trading history, with the $200 strike highlighted in orange: And Walmart Inc (Symbol: WMT) saw options trading volume of 93,513 contracts, representing approximately 9.4 million underlying shares or approximately 100.1% of WMT's average daily trading volume over the past month, of 9.3 million shares. Especially high volume was seen for the $155 strike call option expiring December 15, 2023, with 7,997 contracts trading so far today, representing approximately 799,700 underlying shares of WMT. Below is a chart showing WMT's trailing twelve month trading history, with the $155 strike highlighted in orange: For the various different available expirations for COF options, CAR options, or WMT options, visit StockOptionsChannel.com. Today's Most Active Call & Put Options of the S&P 500 » Also see: GHVI YTD Return MOAT Average Annual Return AMTX shares outstanding history The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-06	WMT	Adds details from Morgan Stanley conference throughout Dec 6 (Reuters) - Walmart's WMT.N top executives said on Wednesday consumer behavior would be tougher to predict next year as financial strain pushes customers to be more cautious about spending their dollars. Earlier on Wednesday, CEO Doug McMillon in an interview with CNBC said rising credit card balances and dwindling household bank accounts do raise questions about how much consumers would be spending. Last month, Walmart had said that U.S. consumers were acting more cautious with spending during the holiday season. But data on Thanksgiving weekend showed that deep discounts on everything from beauty products and toys to electronics lured shoppers to spend bringing a relief to worried retailers. (Reporting by Ananya Mariam Rajesh in Bengaluru and Siddharth Cavale in New York; Editing by Shailesh Kuber) ((AnanyaMariam.Rajesh@thomsonreuters.com ; Twitter: https://twitter.com/AnanyaMariam;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-06	WMT	InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) was the first company to reach $1 trillion in market capitalization in 2018. Value creation has continued, with its market valuation topping $3 trillion in June 2023. Apple is a good example of stories driven by innovation that are a buy-and-hold forever. While AAPL stock remains interesting, I am on the lookout for the next trillion-dollar companies. Without a doubt, there will be major growth stories in the coming years that will translate into a surge in market valuation. It won’t be just companies with sizzling growth entering the trillion-dollar club. There will be blue-chip stocks that gradually create value. This column focuses on these stocks with an investment horizon of five years. A key screener is the cash flow potential. Ultimately, valuation depends on the company’s ability to generate cash. Apple’s core business is a cash flow machine allowing it to invest in dividends, share repurchases, acquisitions and product development. Let’s talk about three potential trillion-dollar companies. Chevron (CVX) Source: Denis Kuvaev / Shutterstock.com There is no doubt that policymakers globally are focusing on green energy. However, it’s too early to declare that the days of fossil fuel are over. Also, crude has declined due to sluggish global growth. With potential rate cuts impending next year, buying oil and gas stocks is a good opportunity. Chevron (NYSE:CVX) is one stock likely to create immense value. After a decline of 18% year-to-date, CVX stock looks undervalued. Further, the stock offers a dividend yield of 4.17%. Given the company’s low break-even assets and ability to generate strong cash flows, I am currently bullish. To put things into perspective, Chevron reported operating cash flow of $9.7 billion for Q3 2023. This translates into an annual cash flow potential of $40 billion. Additionally, cash flows will swell with the impending acquisition of Hess Corporation (NYSE:HES). After the acquisition, Chevron expects an annual capital expenditure of $19 billion to $22 billion. These investments will translate into production growth and further upside in free cash flows. Salesforce (CRM) Source: Sundry Photography / Shutterstock.com Salesforce (NYSE:CRM) stock has surged by 86% year-to-date. However, valuations look reasonable, with the stock trading at a forward price-earnings ratio of 30.7. Salesforce has a big addressable market, ample headroom for growth, and has delivered healthy cash flows. As an overview, Salesforce describes itself as the leading AI-driven customer relationship management company. By 2026, Salesforce believes its solutions will have a total addressable market of $290 billion. With presence across industries and geographic diversification, the growth outlook is robust. For Q3 2023, Salesforce reported healthy revenue of $8.72 billion, and the outlook for Q4 is also positive. However, I want to focus on the cash flows. For the year’s first nine months, Salesforce reported operating cash flow of $6.8 billion. This implies an annual OCF potential of $9 billion. Further, the company has cash and equivalents of nearly $12 billion as of Q3. The cash flow potential and a healthy liquidity buffer provide scope for aggressive expansion and investment in product development. Costco Wholesale (COST) Source: ARTYOORAN / Shutterstock.com Costco Wholesale (NASDAQ:COST) might race ahead of Walmart (NYSE:WMT) to become the first trillion-dollar retail stock. Of course, I am talking about traditional retail and not the likes of Amazon (NASDAQ:AMZN). It’s worth noting that retail stocks have faced inflation-related challenges coupled with macroeconomic headwinds. However, COST stock has been a performer with an upside of 34% year-to-date. I expect strong comparable store sales growth to sustain the positive momentum. An important point is that Costco has 738 warehouses in the United States, Canada and Mexico. Overall, the company has 861 warehouses globally. There is a significant concentration in North America. With just five warehouses in China, there is ample scope for expansion and growth. Costco has also generated $4.6 billion in membership fees in the last 12 months. I expect recurring membership fees to swell further in the coming years. This will boost key margins and cash flows. On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector. More From InvestorPlace ChatGPT IPO Could Shock the World, Make This Move Before the Announcement Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post Trillion-Dollar Aspirations: 3 Stocks With Sky-High Potential appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-06	WMT	Symbotic (NASDAQ: SYM) stock has been on fire in 2023, riding the coattails of recent advances in artificial intelligence (AI). Share prices of the warehouse and supply chain automation specialist are up 367% so far this year, more than 19 times the increase of the S&P 500. This is far better than its performance last year. After its debut on the public markets via a reverse merger with a special purpose acquisition company (SPAC) in June 2022, the stock sank, closing out last year down by 40%. Symbotic's rally in 2023 has been fueled by the robust adoption of its services and strong financial results, as well as its deep ties to AI. It reported record sales and accelerating deployment, and some investors are betting there could be further gains ahead. However, investors who missed out on the stock's blistering rally are left with a quandary: With such a run-up in the rear-view mirror, is it simply too late to jump in, or can investors who buy now hope for further strong gains? Image source: Getty Images. The warehouse of the future Imagine you're a warehouse operator struggling to maximize the amount of inventory you can squeeze into a single warehouse. You have to consider not only the shelf space necessary for the inventory itself but also the weight disbursal to ensure the heaviest items are near the bottom and those most susceptible to being crushed near the top. You need to ensure that you have sufficient room to access and move your inventory, while also considering the maneuverability of the forklifts or robots used to transport products. Most difficult of all, these considerations change with each and every new shipment and delivery. That's where Symbotic comes in. The company has developed an AI-controlled system that solves all these problems. Its proprietary software coordinates the entire warehouse operation while a cadre of fully autonomous robots scamper about doing its bidding. The unique system architecture and modular design can be retrofitted into an existing space or integrated into a structure built from the ground up. Not only does the system optimize the amount of storage space available, but it can also take items from existing inventory and design and create custom mixed pallets for shipment to merchants. Symbotic's novel solution is creating strong demand and attracting attention from some of the world's largest retailers, including such household names as Walmart (NYSE: WMT), Target, Albertsons, and C&S Wholesale Grocers. In fact, Walmart was so impressed it bought an 11% stake in the company. The retail giant also penned an agreement to outfit all 42 of its regional distribution centers with Symbotic's warehouse management system. For its fiscal 2023 fourth quarter, which ended Sept. 30, Symbotic generated revenue of $392 million, up 61% year over year. While it has yet to generate a profit on a GAAP (generally accepted accounting principles) basis, Symbotic has generated positive operating cash flows in each of the past four quarters and for its fiscal 2023. This suggests that its losses are the result of non-cash items, including depreciation, and that sustained profitability is on the horizon. Image source: Symbotic. What the future holds Retailers -- particularly grocery stores and discount retailers -- historically operate on thin margins and are always looking for any advantage they can get. Furthermore, there's a paradigm shift going on in the industry as merchants shift from brick-and-mortar or e-commerce to more omnichannel strategies. One of the biggest incentives for retailers to use Symbotic's system is the cost savings it can provide. By automating warehouse systems, clients reduce their labor costs, lower transportation and operating expenses, and increase efficiency. Case studies suggest that the system can pay for itself in as little as five years, and could save retailers hundreds of millions of dollars over the useful life of the system. The company was originally focused on two categories in the domestic market -- general merchandise, and food and grocery -- but it's expanding beyond those niches. Symbotic has plans to move into supporting retailers in consumer-packaged goods, apparel, auto parts, and home improvement, as well as third-party logistics providers. And it plans to push into international markets as well. All of this will boost its total market opportunity from $144 billion to $432 billion. How to approach Symbotic now Symbotic hasn't attracted a lot of attention from Wall Street thus far. However, of the 14 analysts who had offered an opinion as of November, 10 rated it a buy or strong buy, and none recommended selling. Investors who fear they have missed the boat take heart. Symbotic stock is selling for just 3 times trailing-12-month sales and 1.8 times forward sales, which makes it a relative bargain for an AI stock. Buying shares in Symbotic might seem like a no-brainer at first glance, but there is an asterisk for investors to consider. It has a high degree of customer concentration, with one customer accounting for 87% of its revenue. While recent regulatory filings are mum as to the identity of this client, a prospectus from late last year described Walmart as Symbotic's largest customer. Relying so heavily on any one customer is risky, but that concentration should decrease as Symbotic adds new customers. Investors comfortable with accepting a little extra risk in exchange for greater potential rewards should consider taking a stake in Symbotic to ride the wave of AI and warehouse automation. 10 stocks we like better than Symbotic When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Symbotic wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 4, 2023 Danny Vena has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Target and Walmart. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-06	WMT	Below is Validea's guru fundamental report for WALMART INC (WMT). Of the 22 guru strategies we follow, WMT rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields. WALMART INC (WMT) is a large-cap growth stock in the Retail (Grocery) industry. The rating using this strategy is 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. MARKET CAP: PASS STANDARD DEVIATION: PASS TWELVE MINUS ONE MOMENTUM: NEUTRAL NET PAYOUT YIELD: NEUTRAL FINAL RANK: FAIL Detailed Analysis of WALMART INC WMT Guru Analysis WMT Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam. Additional Research Links Top Large-Cap Growth Stocks Factor-Based Stock Portfolios Dividend Aristocrats 2023 High Insider Ownership Stocks Top S&P 500 Stocks About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-06	WMT	Costco (NASDAQ: COST) isn't playing by the same rules as other retailers. The company makes nearly all of its profit from memberships, which means the retail operations can be run at breakeven. In this video, Travis Hoium goes through the numbers and shows why even the best big-box retailers can't compete with Costco's prices. Stock prices used were end-of-day prices of Dec. 1, 2023. The video was published on Dec. 4, 2023. 10 stocks we like better than Costco Wholesale When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. They just revealed what they believe are the ten best stocks for investors to buy right now... and Costco Wholesale wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 4, 2023 Travis Hoium has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale, Target, and Walmart. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-06	WMT	(RTTNews) - Walmart Inc. (NYSE: WMT) will present at Morgan Stanley Global Consumer and Retail Conference. The event is scheduled to begin at 12:45 PM ET on Dec 6, 2023. To access the live webcast, log on to https://corporate.walmart.com/news/events The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-05	WMT	Looking at the universe of stocks we cover at Dividend Channel, on 12/7/23, Tapestry Inc (Symbol: TPR), Kimberly-Clark Corp. (Symbol: KMB), and Walmart Inc (Symbol: WMT) will all trade ex-dividend for their respective upcoming dividends. Tapestry Inc will pay its quarterly dividend of $0.35 on 12/26/23, Kimberly-Clark Corp. will pay its quarterly dividend of $1.18 on 1/3/24, and Walmart Inc will pay its quarterly dividend of $0.57 on 1/2/24. As a percentage of TPR's recent stock price of $33.02, this dividend works out to approximately 1.06%, so look for shares of Tapestry Inc to trade 1.06% lower — all else being equal — when TPR shares open for trading on 12/7/23. Similarly, investors should look for KMB to open 0.95% lower in price and for WMT to open 0.37% lower, all else being equal. Below are dividend history charts for TPR, KMB, and WMT, showing historical dividends prior to the most recent ones declared. Tapestry Inc (Symbol: TPR): Kimberly-Clark Corp. (Symbol: KMB): Walmart Inc (Symbol: WMT): In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 4.24% for Tapestry Inc, 3.80% for Kimberly-Clark Corp., and 1.48% for Walmart Inc. In Tuesday trading, Tapestry Inc shares are currently up about 1%, Kimberly-Clark Corp. shares are up about 0.1%, and Walmart Inc shares are trading flat on the day. Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen » Also see: VPCB market cap history HCAC shares outstanding history Institutional Holders of XSPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-05	WMT	Below is Validea's guru fundamental report for WALMART INC (WMT). Of the 22 guru strategies we follow, WMT rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields. WALMART INC (WMT) is a large-cap growth stock in the Retail (Grocery) industry. The rating using this strategy is 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. MARKET CAP: PASS STANDARD DEVIATION: PASS TWELVE MINUS ONE MOMENTUM: NEUTRAL NET PAYOUT YIELD: NEUTRAL FINAL RANK: FAIL Detailed Analysis of WALMART INC WMT Guru Analysis WMT Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam. Additional Research Links Top NASDAQ 100 Stocks Factor-Based ETF Portfolios Harry Browne Permanent Portfolio Ray Dalio All Weather Portfolio High Shareholder Yield Stocks About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-05	WMT	Symbotic (NASDAQ: SYM) has been one of the market's hottest growth stocks since it went public by merging with a special purpose acquisition company (SPAC) last June. The warehouse automation company's shares opened at $10.54 each on the first day, soared to an all-time high of $63.54 on July 31, 2023, and currently trade at about $56. Does Symbotic still have more upside potential after racking up those multibagger gains? Let's review three reasons to buy Symbotic stock -- as well as three reasons to sell it -- to see where it might be headed. Image source: Getty Images. The three reasons to buy Symbotic Investors should still consider buying Symbotic's stock because it's growing rapidly, its profitability is improving, and its core market is still expanding. Symbotic's revenue surged 136% in fiscal 2022 (which ended last September) and rose another 98% to $1.18 billion in fiscal 2023. In addition to nearly doubling its revenue in fiscal 2023, it multiplied its total sites in deployment, almost doubled the total number of stores served by its systems, and significantly expanded its annual gross margins. Analysts expect its revenue to continue to rise at a compound annual growth rate (CAGR) of 46% from fiscal 2023 to fiscal 2025. Symbotic also achieved its goal of turning profitable on an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) basis by the end of fiscal 2023. Its adjusted EBITDA margin turned positive in the fourth quarter of the year, and analysts expect it to generate a positive adjusted EBITDA of $146 million in fiscal 2024, along with its first generally accepted accounting principles (GAAP) net profit of $34 million. They forecast its adjusted EBITDA and GAAP net income will soar another 157% and 694%, respectively, in fiscal 2025 as economies of scale kick in. We should take those bullish estimates with a grain of salt, but they indicate Symbotic will retain its early-mover advantage in the warehouse automation market as an increasing number of companies automate their fulfillment centers and logistics networks. According to the company's own estimates, a $50 million investment in just one of its modules (of automated robots for processing pallets and cases) can generate $250 million in savings over 25 years. Mordor Intelligence expects the warehouse automation market to expand at a CAGR of 16% from 2023 to 2028. So even if the broader market cools off, Symbotic should still have plenty of room to grow. The three reasons to sell Symbotic Symbotic's growth rates are impressive, but investors should still consider selling the stock because it has severe customer concentration issues, its stock is expensive, and insiders are cashing out. Symbotic generates nearly 90% of its revenue from Walmart (NYSE: WMT), which was its largest investor prior to its public debut and still owns 11% of the company. Symbotic holds a Master Automation Agreement (MAA) with Walmart to automate all 42 of the latter's regional distribution centers across the U.S. through 2034. It's gradually diversifying its customer base via a joint venture with SoftBank (OTC: SFTB.Y) (which owned the SPAC it merged with), as well as through deals with Target, Albertsons, and C&S Wholesale Grocers, but it will remain overwhelmingly dependent on Walmart for the foreseeable future. Symbotic's dual-class share structure also obfuscates its true valuation. Its enterprise value of $4 billion, which doesn't include all of those shares, might seem cheap at 2 times this year's sales. But its market capitalization of $32 billion -- which includes both classes of shares -- looks a lot pricier at 18 times this year's sales. Symbotic's valuation was likely inflated by the buying frenzy in artificial intelligence (AI) stocks over the past year. Symbotic's warehouse robots are certainly driven by AI, but the company shouldn't be confused with more straightforward AI plays like Nvidia. If Symbotic's stock had more room to run after its five-bagger gains over the past 18 months, then its insiders should probably be scooping up more shares. But over the past three months, they sold more than twice as many shares as they bought. That chilly insider sentiment suggests it might be time to book profits in this high-flying growth stock. Which argument makes more sense? I believe Symbotic's stock could continue rising if it scales up its business, diversifies its customer base, and achieves stable GAAP profitability. But if fails to check just one of those boxes, its stock could crumble under the weight of its valuation. The bullish case still makes sense for speculative investors who are willing to ride out the near-term volatility. However, conservative investors might want to see if it can expand beyond its niche and widen its moat before pulling the trigger. 10 stocks we like better than Symbotic When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Symbotic wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 29, 2023 Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia, Target, and Walmart. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-04	WMT	Last month was a much-needed win for the stock market. When all was said and done the Dow Jones Industrial Average (DJINDICES: ^DJI) gained nearly 9% in November, reversing a nasty downtrend and reaching a new multi-month high in the process. Not every Dow stock followed suit, though. A handful of its components managed to log a loss last month. Savvy investors know these pullbacks might be a buying opportunity. They also know, however, this weakness may only be part of a much bigger sell-off. Here's what you need to know about the Dow's worst three performers last month. The Dow's biggest November losers Cutting straight to the chase, November's biggest losers among the Dow's 30 holdings are Cisco Systems (NASDAQ: CSCO), Walgreens Boots Alliance (NASDAQ: WBA), and Walmart (NYSE: WMT). They were surprising laggards given these companies' statures. Cisco led the way with a tumble of a little more than 7%, Walgreens fell 5.4%, while Walmart slipped just a little less than 5%. CSCO data by YCharts What went wrong? For Walmart, most of its loss came on the heels of the release of its fiscal third-quarter numbers (for the period ending Oct. 27). Although sales and earnings were both up year over year and both better than expected, management rang alarm bells for the quarter now underway. Specifically, CFO John David Rainey noted that sales had been "somewhat uneven" in the prior couple of months, suggesting that inflation and higher interest rates have finally caught up with consumers. Guidance for the full year was also lackluster. Walmart believes it will earn between $6.40 and $6.48 per share in fiscal 2024, versus analysts' consensus of $6.50. Shares of networking technology giant Cisco fell the same day for largely the same reason. That is, although sales of $14.7 billion and per-share earnings of $1.11 for the three-month stretch in question were both up year over year (and both better than expected), guidance for the quarter ending in January was disappointing. The company's calling for a 13% quarter-to-quarter decline in revenue because, as CEO Chuck Robbins explains, "After three quarters of exceptionally strong product delivery, our customers are now focused on installing and implementing these unprecedented levels of products." As for Walgreens, although it would be easy to link its pharmacists' walkout (in protest of their difficult working conditions) in late-October to last month's loss, the two aren't connected much, if at all. Rather, Walgreens shares simply extended a sell-off that's been underway since 2015 due to the ongoing deterioration of the company's health. Indeed, the stock reached a multi-decade low last month on a combination of concerns about theft, a dividend cut, management turnover, layoffs, and labor headaches, just to name a few. Time to buy? The question remains -- are any or all of these discounted stocks a buy now following (and because of) their November setbacks? It's tempting, to be sure. Investors are generally encouraged to step into good stocks while they're "on sale." And, by virtue of being a constituent of the Dow Jones Industrial Average, these three names are arguably within the upper echelon of prospective stock picks. This line of thinking, however, looks past one of the more important tenets of successful investing. That is, one month's performance doesn't really mean much in the grand scheme of things. The bigger question is still whether or not a particular company is worth owning at any price. And that's why November's Dow laggards are a mixed bag now. Some of them are worth stepping into here, while others aren't. Walgreens Boots Alliance is clearly a name best avoided for the time being. Although its shares are priced at a dirt-cheap forward-looking price-to-earnings ratio of 6 and its dividend yield is a sky-high 9.6%, nothing about this company's results is guaranteed anymore. It could take several more years to undo the damage it's done to itself, including the 2014 merger of Walgreens and Boots Alliance (that's now potentially on its way to being undone) and last year's acquisition of primary care and home care company CareCentrix. Expanding your reach within a sector generally makes sense on paper. Even companies within the same business sector, however, don't always mesh well in the real world. In the meantime the retailer remains highly vulnerable to organized shoplifting, its relationship with its pharmacists is tense, and a new CEO just took the helm. All of these are liabilities weighing on the stock. Walmart's a slightly different story. The stock's not a buy right now not because the retailer is performing poorly, but because shares have become so expensive thanks to the 30% run-up from last March's low. Even with the recent pullback, the stock's trading at a trailing price-to-earnings ratio of more than 25. That's pretty rich by this ticker's historical standards. This is a case where you may be best served by holding out for a better price. The company will almost certainly do its part -- growing -- in the meantime. The only name of the three in question that's a resounding buy right now is Cisco. Simply put, CEO Chuck Robbins is right. Cisco sales have been well up since the latter part of last year as enterprises finally began the upgrades of their networking hardware that had been put on hold during the COVID-19 pandemic. They don't need more new hardware just yet. But this headwind was already being priced in. Thanks to last month's sell-off Cisco stock is down 25% from its late-2021 high, and back to where it was trading all the way back in 2019 despite plenty of profits still being produced during this period. CSCO Revenue (Quarterly) data by YCharts These earnings aren't likely to be disrupted anytime soon, particularly now that Cisco is also a serious software company. Its recurring, subscription-based software sales now stand at an annualized rate of $24.5 billion, with even more software revenue than that already lined up. For the sake of comparison, the company's done about $58 billion worth of business over the course of the past four reported quarters. Bolstering the bullish argument here is Cisco stock's valuation. It's an unusually cheap technology stock priced at only 14 times this year's expected per-share earnings of $3.53. It's even more unusual in that this technology name doesn't just pay a dividend, but pays a sizable one translating into a healthy yield of 3.2%. The bigger lesson here, of course, is understanding that when it comes to a stock's performance there's always more to the story. Your job as an investor is finding out what the rest of that story is. 10 stocks we like better than Cisco Systems When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Cisco Systems wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 29, 2023 James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cisco Systems and Walmart. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-04	WMT	A mere three years ago, discount retailer Dollar General (NYSE: DG) was one of the market's hottest stocks. The company had seemingly found a formula for smashing success, offering a wide selection of basic goods at a great price to small, underserved markets. Between its 2009 public offering and its pandemic-prompted peak, Dollar General stock logged a gain of more than 1,100%. Its store count has also grown, from a little more than 8,800 locations then to over 19,000 now, pushing its annual revenue up from less than $12 billion to nearly $40 billion. In retrospect, though, we can now see the company's growth wasn't built to last. Many of its stores are regularly understaffed, and untidy to the point of being unsafe. Meanwhile, the company is struggling to effectively manage its inventory. Dollar General's planned markdowns for the latter half of the current fiscal year will cost it on the order of $95 million after a continued buildup of unneeded and unsellable merchandise through the middle of this year. And this year's same-store sales growth has been tepid at best. The end result? Dollar General stock is still down by half from its late-2022 high despite the recent rebound effort. All of this begs one question: Is it even possible for this retailer to rekindle its past growth rate, or has its rural-focused business model passed its expiration date? Dollar General paid for its big missteps There's nothing wrong with dissecting a company's numerical results. After all, they're the ultimate measure of how well a company is doing. Being a great investor, however, also requires making well-reasoned judgment calls on a company's strategy and plausible growth prospects. That's where Dollar General arguably runs into a stumbling block. See, a decade ago, the business model made sense. Although there are over 4,600 Walmart (NYSE: WMT) stores in the United States alone, they're largely found in more populated areas rather than small towns. Dollar General simply began filling this gap with a convenient, accessible, Walmart-like option. Today, roughly three-fourths of Dollar General stores are located in towns with populations of less than 20,000 people. And the tactic worked -- at least for a while. As time marches on, however, a handful of flaws are being increasingly exposed. One of these is the difficulty and expense of managing a relatively small store. The average Dollar General locale only covers about 9,000 square feet. That's a lot, but not compared to the average Walmart store, which boasts on the order of 180,000 square feet of selling space. This is a problem simply because smaller-footprint stores limit the number of employees that can be cost-effective hires, while at the same time limiting the amount of merchandise a Dollar General can offer. These stores must largely limit their selections to the basics, forcing the retailer's buyers to pick and plan very wisely. And they've not done a particularly great job on this front. The stores themselves haven't helped either; you can't sell an item that's in a box in an overcrowded stock room. The retailer's disinterest in e-commerce has also been limiting. Although it does now offer some online shopping, Dollar General was late to this party, and still hasn't fully arrived. Not all of its items can be purchased online, and all online orders require the customer to pick them up at a store, or use a third-party delivery service like DoorDash. Even its usual rural customers can't ignore Dollar General's lack of evolution in online shopping. Then there's the more big-picture reason why Dollar General is struggling: Management still seems relatively out of touch with what's actually happening in its stores. Ch-ch-ch-ch-changes But the situation isn't insurmountable -- in fact, the past couple years' worth of struggle have arguably been a much-needed wakeup call for the company. Take its inventory management headache as an example. During August'searnings call then-CEO Jeff Owen said Dollar General plans on spending up to $25 million on inventory-demand forecasting tools. This news follows May's announcement that the company would be expanding its network of distribution centers. Former Wayfair executive Peggie Fort has also been hired as Dollar General's inventory oversight chief. It remains to be seen how quickly these measures will start to matter. Nevertheless, the retailer is now doing things it should have been doing long ago. We could begin seeing measurable progress on this front in 2024. The company's getting serious about in-store staffing as well. Dollar General is going to spend up to an additional $150 million this fiscal year alone on labor, most of which will be spent on in-store hires. That's only around 5,000 more full-time workers' worth of spending -- less than its total number of stores. It's a start, though. If the investment pays off in sales growth and reduced shrinkage, don't be surprised if Dollar General expands this investment in the future. DG Revenue (TTM) data by YCharts Perhaps the most overwhelming change underway with Dollar General right now is a rather sweeping overhaul of its management team. Fort is hardly the only newcomer -- CFO Kelly Dilts, Vice President of Growth and Emerging Markets Steve Deckard, and Vice President of Global Supply Chain Rod West have all been hired this year. In the meantime, CEO Todd Vasos is back as CEO after briefly stepping down from a seven-year stint at the helm last year. While one could argue he planted the seeds of several of the company's current problems while he was leading the growth charge, it's difficult to deny he knows Dollar General about as well as anyone can. Looking five years down the road But the question remains: Will this be enough to send Dollar General stock higher in either the near or distant future? It would be naïve to believe the next 10 years will be as fruitful as the past 10 have been. If nothing else, the discounter is running out of places to build new stores. Nevertheless, the new and improving Dollar General is being underestimated by investors and analysts alike. There is a market for smaller-footprint stores that serve as grocers in areas where a full-sized grocery or general merchandise store isn't nearby. But these consumers still expect such a venue to carry all the basics and some discretionary goods in a tidy environment. The company seemed to lose sight of this simple retailing premise a few years ago, perhaps distracted by the introduction of fresh produce and frozen foods. It now seems to be getting back to its roots, with new tech, new leadership, and a real investment in the people on the front lines. It's still not clear where Dollar General stock will be five years from now. What is clear is that the stage is set for a firmly higher price. The stock's rout since late last year only grows the scope of its prospective recovery. 10 stocks we like better than Dollar General When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Dollar General wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 29, 2023 James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends DoorDash and Walmart. The Motley Fool recommends Wayfair. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-04	WMT	Realty Income (NYSE: O) stock gained 14% in November, according to data from S&P Global Market Intelligence. It benefited from an overall market rally as well as positive indications about the real estate market. Realty Income is a REIT leader Realty Income is a real estate investment trust, otherwise known as REIT. As a group, REITs are excellent dividend stocks to own because they have a fairly steady revenue stream and pay out 90% of proceeds as dividends. But not all REITs are the same. Realty Income stands out from the pack primarily because it pays a monthly dividend. But there are other reasons it's an attractive dividend play. It has raised its dividend for 104 consecutive quarters, not just annually, with a monthly streak of 640 consecutive payments. It's one of the largest REITs in the world. In 2021 it acquired VEREIT, which almost doubled its property count to what's now more than 13,000. That move helped it diversify more by industry and tenant, but it still has a retail REIT model that caters mostly to the kinds of chain stores that are reliable for sales growth and rent. Its two largest concentrations are Walgreens and Dollar General, and some of its other top 20 tenants include Walmart and CVS Health. It just announced another acquisition set to go through in a few months in Spirit Realty. Not only does this move expand its portfolio of properties and further diversify its tenant base and industry, but management said it also creates efficiencies with accretive margins, making it a great deal for the company and shareholders. Realty Income stock is a dividend powerhouse Realty Income, like most REITs and the real estate industry in general, has been struggling in the high-interest-rate environment. Its stock was sinking for several months. But there were several positive indicators for the industry and the economy in general in November. Inflation looks to be cooling off, with the Consumer Price Index unchanged from October. Many experts believe the Federal Reserve is done raising interest rates and may even begin to cut them in the coming months, and Chairman Jerome Powell said he believes current policy is properly balanced. These developments helped the market rally in November, with the S&P 500 up more than 8%, and many stocks rising along with it. Realty Income stock is still down 14% in 2023, and at this price, its dividend yields 5.6%. That's well above its typical yield, which is usually around 4.5%. Realty Income is experiencing cyclical headwinds, but it's managing well and has a comfortable cash position to keep growing. It's a great time to buy shares and benefit from a high dividend yield. 10 stocks we like better than Realty Income When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Realty Income wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 29, 2023 Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Realty Income and Walmart. The Motley Fool recommends CVS Health. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-03	WMT	Below is Validea's guru fundamental report for WALMART INC (WMT). Of the 22 guru strategies we follow, WMT rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields. WALMART INC (WMT) is a large-cap growth stock in the Retail (Grocery) industry. The rating using this strategy is 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. MARKET CAP: PASS STANDARD DEVIATION: PASS TWELVE MINUS ONE MOMENTUM: NEUTRAL NET PAYOUT YIELD: NEUTRAL FINAL RANK: FAIL Detailed Analysis of WALMART INC WMT Guru Analysis WMT Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam. Additional Research Links Top NASDAQ 100 Stocks Factor-Based ETF Portfolios Harry Browne Permanent Portfolio Ray Dalio All Weather Portfolio High Shareholder Yield Stocks About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-03	WMT	InvestorPlace - Stock Market News, Stock Advice & Trading Tips Not every investor wants to search for the next million-maker stock. While these types of stocks can generate significant returns, they also have more risk. Blue-chip stocks allow investors to enter positions with less risk, and these stocks can still outperform the market. Blue-chip stocks are reliable companies that have good financials and a few decades of business experience. Some corporations have been in business for over 100 years. That longevity indicates these companies have survived various economic cycles and are more stable than the market during recessions. Investors can accumulate blue-chip stocks to increase their capital while minimizing their potential downside. These are some of the top blue-chip stocks to consider if you can only choose one. Walmart (WMT) Source: Ken Wolter / Shutterstock.com Walmart (NYSE:WMT) has been in business for over 60 years and is a popular retailer for consumers who want to save money. The company offers the lowest prices which are especially useful with high inflation. Walmart isn’t one of those blue-chip stocks that’s going to outperform the market. It’s only up by 6.92% year-to-date but has gained a more impressive 64.74% over the past five years. Walmart reported a decent third quarter (FY 2024) which reflects the nature of a mature company. Revenue went up by 5.2% year-over-year and the e-commerce segment delivered 15% year-over-year growth. While the revenue growth is decent, the stock dropped on that report due to the company’s cautious stance. Sales started to slow down in late October and it’s not a good sign that Walmart and others pulled back on seasonal hires. Walmart is better positioned to withstand macroeconomic uncertainty. It has a lower valuation than many growth stocks and pays out a 1.50% dividend yield. Walmart has endured many recessions before. As macroeconomic conditions worsen, stocks like Walmart look more enticing relative to the market. The company’s year-to-date returns and revenue growth are more enticing than most retailers. Procter & Gamble (PG) Source: Jonathan Weiss / Shutterstock.com Procter & Gamble (NYSE:PG) offers many essential goods that help with cleaning and self-care. Many of Procter & Gamble’s customers frequently return to buy more products since they eventually wear out. The company has a wide range of products including toothpaste, dishwashers, razors, paper towels and laundry detergent. Shares have been flat year-to-date but are up by almost 65% over the past five years. Investors also get to enjoy a 2.47% dividend yield as they hold onto their shares. Procter & Gamble isn’t the type of stock that keeps up with the market when it rallies. However, the company’s 25 P/E ratio leaves it less vulnerable than many other stocks. The company also reported good earnings recently. Net sales went up by 6% year-over-year while net income increased by 15% year-over-year. The stock truly shines for investors who do not want much volatility. PG stock currently has a 0.46 Beta. A higher beta indicates more dramatic market swings. It’s much lower than the S&P 500’s 1.00 beta. Alphabet (GOOG, GOOGL) Source: Koshiro K / Shutterstock.com Companies will run advertisements to reach more customers in any economy. While advertising takes a hit during economic slowdowns, the largest advertisers in the world don’t get hit as hard. When most people think of advertising, they immediately think of Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL). Google and YouTube are two of the most visited websites and generate billions of dollars every quarter. Alphabet has a 1.05 beta which means its volatility is in line with the market. While that’s volatility reading is higher than Walmart and P&G, Alphabet has delivered higher returns and still has a good valuation. Alphabet shares have gained almost 50% year-to-date and are up by over 150% over the past five years. Shares currently trade at a 26 P/E ratio and a 20 forward P/E ratio. The company’s revenue and earnings growth have been accelerating compared to 2022 growth. This quarter, Alphabet increased its revenue by 11% year-over-year. Net income jumped by 41.6% year-over-year. The stock combines the blue-chip elements of Walmart and Procter & Gamble with compelling growth potential. On the date of publication, Marc Guberti did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines. Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet. More From InvestorPlace Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In. The #1 AI Investment Might Be This Company You’ve Never Heard Of The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post If You Can Only Buy One Blue-Chip Stock in December, It Better Be One of These 3 Names appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-03	WMT	InvestorPlace - Stock Market News, Stock Advice & Trading Tips Some smart people have changed their minds on Paypal (NASDAQ:PYPL) stock. Tipranks saw 2 of its 34 PayPal analysts announce upgrades this month. Most notable is that Josh Brown, who called PYPL stock a value trap in August, at $60, told CNBC recently he just bought in at $58. As our Will Ashworth notes, PayPal is down 70% from its highs but has many of the strengths value investors look for. The BNPL Christmas and PYPL Stock Brown’s view changed in part because this looks like a “Buy Now Pay Later” Christmas. Affirm Holdings (NASDAQ:AFRM), the BNPL stock that was below $10 in March, is now over $33. Instead of putting purchases on credit cards at up to 30% interest, shoppers are committing the next few months to BNPL plans that may carry no interest. Paypal leads the BNPL category, according to a recent survey. That’s thanks to an acquisition binge under former CEO Dan Schulman. Venmo has been PayPal for a decade. Xoom has been part of PayPal since 2015. PayPal also owns other payment brands, like Zettle, HyperWallet and Braintree, which was Venmo’s parent company. But when alternative payment networks crashed in 2022, PYPL stock crashed with them. PYPL stock was trading at over $180 per share two years ago. It was at $73 by December 2022. It reached a low of just $51 per share in October. Brown’s August call to sell looked smart. Maybe his most recent buy call will be smart as well. More Reasons to Like PYPL There’s another reason for new confidence in PayPal. Alex Chriss, a former Intuit (NASDAQ:INTU) executive who was named PayPal CEO in August, has been building a new executive team with people from Intuit, Walmart (NYSE:WMT) and American Express (NYSE:AXP). The most important hire is Michelle Gill, who worked under Chriss at Intuit’s QuickBooks. Her task is to focus on small business. This is where PayPal hopes to make inroads against Block (NASDAQ:SQ), the company formerly known as Square. Block’s phone payment dongles and simple pricing made it a favorite with the smallest merchants. But it may now be vulnerable. CEO Jack Dorsey has become enamored with Bitcoin and blockchain, which led to the company’s name change. I often see Square terminals at the small businesses where I shop. PayPal offers its terminals through Zettle. Block could be vulnerable to an aggressive PayPal marketing push based on payment and cash management solutions it already has. This includes a small business grant program from Venmo and a cashback credit card. It may also attract small businesses to Paypal’s new support for the Apple (NASDAQ:AAPL) Wallet. Chriss says his company’s focus has been muddled. He has had layoffs (always popular with analysts) and increased investment in artificial intelligence. The Bottom Line There are short term and long term reasons to buy PayPal now. In the short term, you’re buying BNPL and the backing of smart analysts. In the longer term, you’re buying Chriss’ record at Intuit and his plans for PayPal’s turnaround. Focusing on small business, investing in AI are solid moves. At 46, Chriss is like those smart coordinators NFL teams like to hire for their top jobs, with a solid track record and ambition in his new post. I haven’t bought PayPal yet, but I’m putting it on my radar. As of this writing, Dana Blankenhorn had a LONG position in AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines Dana Blankenhorn has been a financial and technology journalist since 1978. He is the author of Technology’s Big Bang: Yesterday, Today and Tomorrow with Moore’s Law, available at the Amazon Kindle store. Tweet him at @danablankenhorn, connect with him on Mastodon or subscribe to his Substack. More From InvestorPlace ChatGPT IPO Could Shock the World, Make This Move Before the Announcement Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post Analyst U-Turn: The Rising Case for Investing in PayPal Stock Now appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-01	WMT	By Siddharth Cavale Dec 1 (Reuters) - Walmart WMT.N said on Friday it is not advertising on social media platform X, the latest brand to say it has dropped the Elon Musk-owned site. "We aren't advertising on X as we've found other platforms to better reach our customers," a Walmart spokesperson told Reuters. X did not immediately respond to a request for comment. (Reporting by Siddharth Cavale in New York; Editing by Chizu Nomiyama) ((Sheila.Dang@thomsonreuters.com; +1 646-983-0894;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-01	WMT	In trading on Friday, shares of Walmart Inc (Symbol: WMT) crossed below their 200 day moving average of $154.42, changing hands as low as $152.63 per share. Walmart Inc shares are currently trading down about 1.3% on the day. The chart below shows the one year performance of WMT shares, versus its 200 day moving average: Looking at the chart above, WMT's low point in its 52 week range is $136.09 per share, with $169.94 as the 52 week high point — that compares with a last trade of $153.83. The WMT DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » Also see: Railroads Dividend Stocks BBH shares outstanding history Top Ten Hedge Funds Holding SBND The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-01	WMT	InvestorPlace - Stock Market News, Stock Advice & Trading Tips The top tech stocks are more just the “Magnificent Seven” list or the next big thing in artificial intelligence. Today, in a higher interest rate environment, you can’t afford to gamble on companies with limited long-term prospects or poor financials. Markets aren’t rewarding bad financial management, nor are they throwing cash at losers with limited viability. To find the top tech stocks to buy, you’ll need to focus on two core fundamentals. First, look to stocks in a high-demand industry offering unique solutions to common problems through innovation. Second, they need the financial standing to weather whatever economic cycle we see over the next year or so. These three tech stocks meet the mark and stand as the top tech stocks today. AST SpaceMobile (ASTS) Source: Andrey Suslov / Shutterstock.com AST SpaceMobile (NASDAQ:ASTS) might be the top tech stock in the next few years. The space stock is set to capture part of a $1 trillion industry and has heavy institutional backing. The company is developing a network of low-earth satellites to deliver broadband connectivity to remote regions. This differs from Starlink and Amazon’s (NASDAQ:AMZN) burgeoning space internet effort because it focuses solely on cell connectivity. Although cell towers are globally dispersed, key rural and remote areas are wholly without service. AST SpaceMobile seeks to close that gap. Recently, AST partnered with AT&T (NYSE:T) to complete the first satellite-enabled 5G call from Hawaii to Spain. This test proved AST’s viability, and AT&T hopes to use the company to increase its global position and open new markets in a saturated field. AST shares are already up 40% over the past month. Still, shares are priced to buy at less than $5 each, particularly considering its status as a top tech stock to buy. Symbotic (SYM) Source: shutterstock.com/everything possible Symbotic (NASDAQ:SYM) might not be the coolest tech stock on the market, but the artificial intelligence and automation company is quietly expanding its massive reach. SYM delivers AI solutions to warehousing, a critical sector as eCommerce explodes and companies with dispersed operations struggle to manage inventory and product movement. Symbotic’s clients already include Walmart (NYSE:WMT) and Target (NYSE:TGT). Industry reliance on that scale alone positions Symbotic as a top tech stock. But today, the company is increasing its reach to deliver AI warehouse automation to smaller businesses. The company’s new shared-warehouse platform compounds its utility. Warehouse infrastructure is expanding rapidly as companies pivot to an online-only fulfillment model. These trends, and Symbotic’s unique value proposition, set it apart from other tech stocks today. The company just posted its first profitable quarter, which bodes well for its long-term financial prospects. Rapid revenue growth and improved margins, alongside its new addressable market reach, position Symbotic as a future leader in the tech industry. AeroVironment (AVAV) Source: Pavel Kapysh / Shutterstock.com AeroVironment (NASDAQ:AVAV) is a lesser-known tech stock. That’s mostly because it’s also a defense stock and goes unnoticed in the bigger defense sector. The company offers a range of unmanned drones for military applications, but its unique tech focus makes it different from larger defense players. Recently, the company unveiled a massive new unmanned aircraft, the JUMP 20 Group 3, and deployed the platform during a training exercise. The aircraft is unique because it doesn’t focus solely on surveillance or offensive weapons capabilities. Instead, it’s an electronic warfare platform that denies enemy communications capabilities. These tech-heavy platforms aren’t usually unmanned but are a critical part of today’s battlefield capabilities. Unmanned electronic warfare is a huge step forward for the defense industry and AeroVironment and one that could turn this tech stock into a huge player moving forward. The company is leaning into its tech stock position by preparing to buy Tomahawk Robotics. The $120 million acquisition represents streamlined operations because Tomahawk already supplies core hardware capabilities within AVAV’s drone fleet. AVAV’s financial position is enough to pay the steep price tag, a bullish indicator, while the buyout will improve AVAV’s margins over time. On the date of publication, Jeremy Flint held no positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Jeremy Flint, an MBA graduate and skilled finance writer, excels in content strategy for wealth managers and investment funds. Passionate about simplifying complex market concepts, he focuses on fixed-income investing, alternative investments, economic analysis, and the oil, gas, and utilities sectors. Jeremy’s work can also be found at www.jeremyflint.work. More From InvestorPlace The #1 AI Investment Might Be This Company You’ve Never Heard Of Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post What Are the Top Tech Stocks to Buy Right Now? 3 Picks. appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-01	WMT	Good morning, VettaFi Voices! Last Friday, the holiday shopping season kicked off in earnest (while I hunkered down in my house eating turkey sandwiches and waited for the initial frenzy to pass). I know the initial flurry of online retail activity was pretty strong. What do you think we can expect this year and what will it tell us about the health of the American consumer? Is there a way for ETF investors to benefit from any trends for the rest of the year? Todd Rosenbluth, VettaFi Head of Research: I'm going to defer to Roxanna Islam and Jane Edmondson, who have both covered consumer and online trends in recent days/weeks with great content. I know in the Rosenbluth household we got our Chanukah shopping done online. After my alma mater, the University of Michigan's football team beat Ohio State. Had to get it in and it pays to show up early at the water cooler. But Americans have been shopping for ETFs in general. In the past month, we have seen approximately $100 billion of new money with S&P 500-based SPY, VOO, and IVV leading the way. Followed not far behind by high-yield ETFs HYG and JNK. November is not just the beginning of the holiday shopping season. It's also when we see tax loss harvesting from mutual funds. Heather Bell, VettaFi managing editor: Yes, I've got seven kids (cousin's children, not mine!) to buy for every year for Christmas who live about 2,000 miles away. As much as I like supporting small businesses, I get almost everything over Amazon because of how much shipping costs otherwise. But I can't order anything now or it will get there WAY too early! There's an art to online shopping ... Amazon’s Weight Can Vary Rosenbluth: I expect my colleagues to dive into this soon, but why wait? Amazon.com (AMZN) is a major holding of the ProShares Online Retail ETF (ONLN) — about 23% of assets. While it and all the other stocks in the Amplify Online Retail ETF (IBUY) are less than 4%. While Amazon is a key player in this theme it is not the only online company benefitting from the secular trend. Jen Nash, VettaFi economic and market research analyst: In October, retail sales pulled back for the first time in 7 months. I think we will see a bounce back in sales from holiday shopping, but it may be tempered. Consumers have been facing a lot of economic headwinds like inflation, high interest rates, student loan repayments, dwindling savings, and slower job and wage growth — and yet they’ve continued to spend. Some of these obstacles took a little longer for the consumer to actually feel in their wallet. This could be a partial explanation for the disconnect seen between strong consumer spending and weak consumer confidence. However, I believe consumers are starting to feel the impact more and more which has led to a lot of deal-searching and discount shopping for the holidays. Roxanna Islam, VettaFi head of sector and industry research: Yes, online retail/e-commerce is much more complex than Amazon. However, Amazon does it all. They sell their own products, serve as a marketplace for other sellers, and have their own supply chain. I think Amazon's package volume is actually bigger than both UPS and FedEx now. They're also more than 10% of UPS's package volume. Here is part 1 and 2 of my research notes on the retail sector which covers both online shopping and consumer staples. Online Retail Taking Market Share From Traditional Retail I also don't think a strong Black Friday/Prime Day means much for overall retail sales when you look at it every quarter because a lot of that is spending pulled forward to take advantage of the deals. So strong Black Friday sales may not translate to a strong 4Q since consumers are likely doing holiday shopping early. However, the growth in e-commerce/online shopping can be considered a separate trend. Online retail sales have always outplaced total retail sales except for a few quarters post-pandemic when it was lapping extremely high year-over-year growth. Even now when we see some uncertainty in total retail sales, e-commerce continues to take market share. Most of that is driven by non-store retailers or discretionary segments like clothing and general merchandise (in contrast to staples like food and healthcare). And that's not just from online retailers like Amazon. It’s also from traditional retailers who are becoming more tech-savvy and integrating e-commerce alongside their brick-and-mortar operations in addition to utilizing omnichannel strategies like BOPIS (buy online pick up in-store). Rosenbluth: I want to shout out broad consumer discretionary ETFs like the Consumer Discretionary Select Sector SPDR Fund (XLY) and the Vanguard Consumer Discretionary ETF (VCR). They are different than the Consumer Staples Select Sector SPDR Fund (XLP) and Vanguard Consumer Staples ETF (VDC). Amazon is part of consumer discretionary, while Walmart is a consumer staple stock. Online Retail Crosses Sectors Islam: Walmart is a very large retailer, though. Even though they lean toward staples, they are about 15% e-commerce now which is about in line with the national average. The stock is found in many online shopping ETFs as well. Many online shopping ETFs have both consumer discretionary and staples, as well as tech holdings and industrial. Transportation is an important part of the online retail chain. Transportation companies benefit from the higher volume to the extent that they can handle the capacity. And that's across all freight modes including passenger airlines which carry a lot of belly cargo. Rosenbluth: I ticker dropped IBUY and ONLN earlier but there's also the Global X E-commerce ETF (EBIZ). 70% of its assets are in consumer discretionary, but there's 7% in industrials, as you noted. Islam: There are also ETFs like the First Trust S-Network E-Commerce ETF (ISHP) — that one is about 40% communications, 27% discretionary, 15% tech, and 9% industrials. Online retail is really a multi-sector concept. Rosenbluth: Good point! Many thematic ETFs are cross-sector. Jane Edmondson, VettaFi head of thematic strategy: The other interesting thing we are seeing among online shoppers is increasing use of buy now/pay later, or “BNPL.” Adobe reported a 17% increase in the use of BNPL this holiday season over last year. And there was $940 million in BNPL on Cyber Monday alone! What does this mean for the consumer? Is it a bad thing? I think it is actually more about swapping high-rate credit cards for the more favorable terms of BNPL. That’s just another attraction of shopping online — payment flexibility. Travel Having a Strong Year Rosenbluth: I’m jumping back in before this gets too smart for me about shopping — I'd rather sit on my couch and watch TV than shop! The SPDR S&P Retail ETF (XRT) was long the go-to ETF for people thinking about retail. And it has close to $500 million in assets. But this year XRT is up just 8% vs. 25% for IBUY. Edmondson: The clicks are definitely beating the bricks among holiday shoppers! But the thing we are seeing in retail and across other sectors is the resumption of trends that were in place before the pandemic. We are also seeing strong travel spend among consumers. I was on a flight yesterday for business, but it was packed to the gills with returning holiday passengers. Consumers are traveling, eating out, and generally seem to be enjoying life, despite higher costs. While the U.S. Global Jets ETF (JETS) is not having a great year from a performance standpoint, the Defiance Hotel, Airline, and Cruise ETF (CRUZ), which is a broader-based play on the travel theme is having a solid year, up 20%. It is interesting also that some Chinese online players are becoming popular in the U.S. Pinduoduo's Temu has really shaken things up. That company is now a formidable competitor to Alibaba. And another popular Chinese fast-fashion retailer, Shein, is about to IPO in the U.S. They are playing to cost-conscious consumers' desires for a bargain. Rosenbluth: I was just looking at the Goldman Sachs Future Consumer Equity ETF (GBUY), an active ETF. It has about 60% in North American stocks but lots of international ones like LVMH and Mercado Libre. Luxury Goods Vs. Cost-Conscious Shopping Edmondson: It’s also interesting in this age of cost-conscious consumers we have seen the launch of several luxury-focused ETFs. The Tema Luxury ETF (LUX), Roundhill S&P Global Luxury ETF (LUXX), and KraneShares Global Luxury ETF (KLXY). So which consumer economy are we in? Fast fashion using BNPL or luxury goods? Rosenbluth: I'm not sure I'm proactively living in either, Jane. But at Exchange I will be rotating between solid blue and solid white dress shirts with no tie. Jen, I think I saw gas prices have been falling. That should have been good for spending and maybe sets up for more old-school holiday road trips. Nash: Yes, gas prices have now fallen for 10 straight weeks to nearly their lowest level of the year. This is one of the areas where consumers are most attuned to prices, so I anticipate some of the future consumer sentiment surveys to start reflecting more positive attitudes about inflation. With that said, the latest Michigan consumer sentiment survey did report that consumers have noticed a slowdown in prices across the board but that they remain cautious and worried that this could reverse soon. Todd, are there any gasoline/oil ETFs that this could impact? Rosenbluth: There are no gas price ETFs, but there is the United States Oil Fund (USO) that is tied to the price of oil. Islam: There’s also the United States Gasoline Fund (UGA). Rosenbluth: I’m happy to be wrong, Roxanna! EVs Losing Sales to Hybrids, Conventional Vehicles Edmondson: The Tesla Cybertruck is about to debut, Todd. Maybe you can take your road trip in that? There is a really interesting trend going on right now with EV sales. Hybrid vehicles (both gas- and EV-powered) have surpassed EV sales for the first time. Range anxiety is an issue of course on those long car trips, worrying about how and where to charge. But the other thing we are seeing is that EVs still are much more expensive than their gas-powered and hybrid vehicle peers. I am sure that high interest rates are exacerbating this as well, making high-cost EVs even more expensive. I’m not sure of the price point for that Cybertruck. $70k? Rosenbluth: I'm not buying a car for the holidays, no matter how happy the people on TV seem to be when one magically arrives in the driveway. I also live in an apartment building. Playing the EV Space Edmondson: There are a few ETF plays on EVs including the Amplify Lithium and Battery Technology ETF (BATT) which has exposure to the EV supply chain; the Kraneshares Electric Vehicle & Future of Mobility ETF (KARS) and the First Trust S-Network Future Vehicles and Technology ETF (CARZ). Not to mention all the ways to play Tesla from single-stock ETFS to levered and inverse versions and even high-yield income versions! Innovator even has the Innovator Hedged Tesla Strategy (TSLH). Sounds like there is no Tesla Cybertruck with a giant holiday bow for you, Todd. Rosenbluth: That would surprise me in many ways. Bell: But if gas prices are way down, will that hurt EV sales? Edmondson: I think the longer-term trend remains toward EV adoption. But we need more EV charging infrastructure and prices to come down. Oil prices can fluctuate, but oil companies are not going away overnight. And energy companies are a great cash flow story. Many pay nice dividends, are buying back shares and there has been recent M&A activity. For more news, information, and analysis, visit the Climate Insights Channel. vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for ISHP, CARZ, and IBUY, for which it receives an index licensing fee. However, ISHP, CARZ, and IBUY are issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of IISHP, CARZ, and IBUY. Read more on ETFTrends.com. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-01	WMT	By Deborah Mary Sophia and Aishwarya Venugopal Dec 1 (Reuters) - Retailers like Amazon.com and Foot Locker are signaling optimism for holiday season sales after stronger-than-expected figures during Black Friday and Cyber Monday, as heavy discounts lured budget-strained customers on the peak U.S. shopping days. Early estimates on holiday shopping have been encouraging to some investors after retailers sounded cautious notes in the lead-up to the season. Online sales in the U.S. during the five-day period from Thanksgiving through Cyber Monday hit a record $38 billion, according to Adobe Analytics, while the National Retail Federation said more than 200 million people shopped both in-store and online during the holiday weekend, surpassing estimates. "While there are parts of the consumer that definitely are much slower and weaker, from a spending perspective, there's still a lot of money sitting on the sidelines... (The holiday season) actually could be a little bit better than what most people think," said Jimmy Lee, CEO of Wealth Consulting Group, which holds Amazon shares. Earlier this week, Ulta BeautyULTA.O and Foot LockerFL.N bumped up their annual sales expectations, with the footwear retailer flagging a strong start to holiday selling on the back of steep discounts. Black Friday store visits to recreational and sporting goods retailers were up 322.9% compared to the 2023 year-to-date daily average, while the category saw an increase of 305.2% the previous year, according to foot traffic data from Placer.ai. "We know we're buying for wallet share with a value-conscious consumer this holiday season. Quarter-to-date, we've been pleased with the trends as consumers respond to our full-price holiday assortments in addition to our compelling deals," Foot Locker CEO Mary Dillon said in a conference call on Wednesday. Amazon's AMZN.O extended Black Friday and Cyber Monday holiday shopping event - which kicked off on Nov. 17 and continued through Nov. 27 - was its biggest ever compared to the same ending on Cyber Monday in previous years. This year, during the week ending Nov. 25, card spending was 1.7% higher than in the week ending the day after Black Friday last year, according to a report from BofA Global research. The corresponding increases in spending on holiday items were also larger this year, the report said. Kohl's KSS.N CEO Tom Kingsbury said last week the company was "coming out on holiday very aggressively in terms of promotions." Most retailers including Walmart WMT.N, and clothing chains Abercrombie & Fitch ANF.N and American Eagle Outfitters AEO.N, have raised annual forecasts, putting them on track for a strong holiday quarter. Since Aug. 1, the consumer discretionary sector has recorded the highest percentage increase in earnings, according to LSEG IBES data. Yet some retailers, including Kohl'sKSS.N, Best BuyBBY.N and Lowe's CosLOW.N, have tempered their sales forecasts for the year. "The U.S. consumer is bifurcated. Lower income households are pulling back on discretionary purchases... But outside of the lowest tier we believe household consumption remains resilient," Jason Benowitz, senior portfolio manager at CI Roosevelt, said. (Reporting by Deborah Sophia and Juby Babu in Bengaluru; Editing by Pooja Desai) ((DeborahMary.Sophia@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-01	WMT	Below is Validea's guru fundamental report for WALMART INC (WMT). Of the 22 guru strategies we follow, WMT rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields. WALMART INC (WMT) is a large-cap growth stock in the Retail (Grocery) industry. The rating using this strategy is 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. MARKET CAP: PASS STANDARD DEVIATION: PASS TWELVE MINUS ONE MOMENTUM: NEUTRAL NET PAYOUT YIELD: NEUTRAL FINAL RANK: FAIL Detailed Analysis of WALMART INC WMT Guru Analysis WMT Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam. Additional Research Links Top Large-Cap Growth Stocks Factor-Based Stock Portfolios Dividend Aristocrats 2023 High Insider Ownership Stocks Top S&P 500 Stocks About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-01	WMT	Coca-Cola (NYSE: KO) is a dominant business that has unfortunately delivered less-than-sparkling returns for investors of late. The beverage giant's shares underperformed the market over the past three years despite Coke's ability to boost annual sales and earnings in that time. Investors are worried about structural pressures on Coke's core business as demand slowly shifts away from traditional sodas. If that's your concern, I have three excellent alternatives to consider. Read on for a few reasons to like McDonald's (NYSE: MCD), Walmart (NYSE: WMT), and PepsiCo (NASDAQ: PEP) as potentially better stalwart dividend investments. 1. McDonald's has the profits One of the best reasons to like Coca-Cola stock is the company's market-leading profit margin. Its dominant position in a massive global industry allows it to earn multiples of what its smaller rivals can expect, after all. The same can be said about McDonald's. The fast-food giant recently set a profitability record after converting 46% of its sales into operating income. Chipotle, in contrast, has a 16% profit margin. McDonald's earns those unusually high returns mainly from its heavily franchised operating model, which also adds valuable flexibility to its revenue and income streams. And Mickey D's has shown a knack for reinventing itself along with changing consumer preferences. In recent years, these responses have included adding more natural ingredients and more conveniences around digital ordering and delivery. That adaptability should help deliver tasty returns for investors who just hold this stock over the long term. 2. Walmart's dividend streak There aren't many companies that match or exceed Coca-Cola's dividend streak of over 60 years, but Walmart comes close. The retailer has boosted its annual payout in each of the last 50 years, putting it in that exclusive club of Dividend Kings. The company is no slouch in the growth department, either. Comparable-store sales were up 5% in the core U.S. market last quarter, translating into market share gains through a tough selling environment. However, investors are used to seeing these kinds of results from the industry leader, which has steadily boosted its sales footprint through booms and busts over the decades. Walmart stock looks reasonably priced today, too. You can own shares for 0.7 times sales following a modest sell-off in response to the chain's third-quarter earnings update. That report featured some cautious comments from management about short-term growth trends. But investors can look past the volatility and focus on Walmart's bright long-term outlook. 3. PepsiCo is more diverse PepsiCo doesn't have nearly as high a profit margin as Coke does right now. But this stock delivers in an area that Coca-Cola can't match: revenue stream diversity. Along with two dozen beverage brands, Pepsi has a large and thriving food products division that spans snacks and breakfast foods. This exposure allowed the company to protect sales and profits during the early phases of the pandemic, showing off the power of having multiple revenue streams. Pepsi is also a stalwart dividend payer with over 50 years of consecutive raises under its belt. And the best news is that the stock is priced at a huge discount to Coke's shares. You can buy PepsiCo for 2.5 times sales, or about half of Coke's valuation. That discount can set you up for excellent long-term returns if you patiently hold this dividend giant through the inevitable ups and downs in the consumer packaged food industry. 10 stocks we like better than McDonald's When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now… and McDonald's wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 29, 2023 Demitri Kalogeropoulos has positions in Chipotle Mexican Grill and McDonald's. The Motley Fool has positions in and recommends Chipotle Mexican Grill and Walmart. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-01	WMT	By Deborah Mary Sophia and Aishwarya Venugopal Dec 1 (Reuters) - Retailers like Amazon.com and Foot Locker are signaling optimism for holiday season sales after stronger-than-expected figures during Black Friday and Cyber Monday, as heavy discounts lured budget-strained customers on the peak U.S. shopping days. Early estimates on holiday shopping have been encouraging to some investors after retailers sounded cautious notes in the lead-up to the season. Online sales in the U.S. during the five-day period from Thanksgiving through Cyber Monday hit a record $38 billion, according to Adobe Analytics, while the National Retail Federation said more than 200 million people shopped both in-store and online during the holiday weekend, surpassing estimates. "While there are parts of the consumer that definitely are much slower and weaker, from a spending perspective, there's still a lot of money sitting on the sidelines... (The holiday season) actually could be a little bit better than what most people think," said Jimmy Lee, CEO of Wealth Consulting Group, which holds Amazon shares. Earlier this week, Ulta BeautyULTA.O and Foot LockerFL.N bumped up their annual sales expectations, with the footwear retailer flagging a strong start to holiday selling on the back of steep discounts. Black Friday store visits to recreational and sporting goods retailers were up 322.9% compared to the 2023 year-to-date daily average, while the category saw an increase of 305.2% the previous year, according to foot traffic data from Placer.ai. "We know we're buying for wallet share with a value-conscious consumer this holiday season. Quarter-to-date, we've been pleased with the trends as consumers respond to our full-price holiday assortments in addition to our compelling deals," Foot Locker CEO Mary Dillon said in a conference call on Wednesday. Amazon's AMZN.O extended Black Friday and Cyber Monday holiday shopping event - which kicked off on Nov. 17 and continued through Nov. 27 - was its biggest ever compared to the same ending on Cyber Monday in previous years. This year, during the week ending Nov. 25, card spending was 1.7% higher than in the week ending the day after Black Friday last year, according to a report from BofA Global research. The corresponding increases in spending on holiday items were also larger this year, the report said. Kohl's KSS.N CEO Tom Kingsbury said last week the company was "coming out on holiday very aggressively in terms of promotions." Most retailers including Walmart WMT.N, and clothing chains Abercrombie & Fitch ANF.N and American Eagle Outfitters AEO.N, have raised annual forecasts, putting them on track for a strong holiday quarter. Since Aug. 1, the consumer discretionary sector has recorded the highest percentage increase in earnings, according to LSEG IBES data. Yet some retailers, including Kohl'sKSS.N, Best BuyBBY.N and Lowe's CosLOW.N, have tempered their sales forecasts for the year. "The U.S. consumer is bifurcated. Lower income households are pulling back on discretionary purchases... But outside of the lowest tier we believe household consumption remains resilient," Jason Benowitz, senior portfolio manager at CI Roosevelt, said. (Reporting by Deborah Sophia and Juby Babu in Bengaluru; Editing by Pooja Desai) ((DeborahMary.Sophia@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-30	WMT	InvestorPlace - Stock Market News, Stock Advice & Trading Tips Over the past couple of years, we saw an unprecedented boom in consumer spending. With the government stimulus payments and programs such as the freeze on student loan payments, consumers were flush with cash to spend. But these trends have now reversed. Stimulus programs long ago ran out, debt repayments have started up again and inflation is hitting hard. Add it all up and U.S. retail sales dipped into negative territory in October as consumers, facing higher credit card balances, seem to be pulling back. This is hitting discretionary firms hard, with sectors such as luxury retail on the decline. But there should be a trade-down effect here that works to the benefit of more value-focused retailers. These are three leading discount retailer stocks that will take advantage of this trend. Dollar General (DG) Source: Jonathan Weiss / Shutterstock.com Dollar General (NYSE:DG) is one of America’s large chains of dollar stores. These have developed a proven appeal with people that are maximizing purchasing power. In addition, Dollar General has invested heavily in building out stores in rural areas where there is little competition. This has, in effect, given Dollar General something akin to a local monopoly in many smaller communities. Despite Dollar General’s strengths, the company fell onto hard times over the past year. The labor shortage left many Dollar General stores understaffed which in turn led to a number of media scandals around store safety and cleanliness. In addition, profit margins dipped due to supply chain issues. At the end of the day, however, Dollar General’s issues are fixable. And the softening economy should bring Dollar General’s core customer base back to the stores in droves next year. With DG stock down nearly 50% over the past year, investors can get in at an attractive 17 times forward earnings for this leading bargain retailer. Walmart (WMT) Source: Jonathan Weiss / Shutterstock.com Here’s a fun fact. Out of the 30 stocks that make up the Dow Jones Industrial Average, Walmart (NYSE:WMT) was the only one whose stock went up between 2007 and March 2009. Put another way, Walmart was one of the only big blue-chip companies in America to produce a positive return during the onset of the 2008 Financial Crisis. This success probably shouldn’t be too surprising. Walmart has unmatched expertise in brick-and-mortar sales and ground logistics. The company’s ruthless efficiency and unwavering commitment to everyday low prices has given Walmart an incredibly strong brand and competitive position. Walmart is not the most glamorous shopping experience. But in times of economic duress and heightened inflation, Walmart’s appeal to bargain shoppers is unmatched. Walmart has cautioned that it sees weaker consumer spending in 2024. That’s not surprising given the macroeconomic environment. Regardless, Walmart recently posted strong quarterly earnings and raised guidance. Investors can count on WMT stock to deliver the goods regardless of whether a recession starts next year. Ross Stores (ROST) Source: Andriy Blokhin / Shutterstock.com Ross Stores (NASDAQ:ROST) is a leader discount apparel and home goods and fashion retailer. In essence, Ross brings shoppers the outlet experience, but at convenient urban locations rather than out-of-the-way outlet centers. Ross has a competitive advantage thanks to its large store base, with more than 2,000 operating locations across its various brands. In addition, it has strong merchandise sourcing and has developed a “treasure hunt” style atmosphere with large discounts versus full-price competitors. In addition, other retailers’ struggles should benefit Ross. We’ve seen a number of rivals like Bed Bath & Beyond and Big Lots (NYSE:BIG) either go bankrupt or run into deep financial trouble. That should allow Ross to gain market share, and that’s doubly true in a recession when consumers look for the cheapest available shopping options. On the date of publication, Ian Bezek held a long position in DG stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Ian Bezek has written more than 1,000 articles for InvestorPlace.com and Seeking Alpha. He also worked as a Junior Analyst for Kerrisdale Capital, a $300 million New York City-based hedge fund. You can reach him on Twitter at @irbezek. More From InvestorPlace Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In. The #1 AI Investment Might Be This Company You’ve Never Heard Of The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post 3 Discount Retailer Stocks Primed to Benefit From Pinched Consumer Budgets appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-30	WMT	By Diana Novak Jones Nov 30 (Reuters) - A New York federal judge found that an attorney who has filed hundreds of class actions accusing companies of misleading labeling on foods and other products in civil contempt of court on Thursday, saying he filed a lawsuit against Starbucks in bad faith. Senior U.S. District Judge Frederick Scullin Jr issued the order against attorney Spencer Sheehan after dismissing a proposed class action Sheehan filed against Starbucks over the labeling on its French Roast Ground 100% Arabica coffee, saying the lawsuit was unsupported by studies, case law or “reasonable interpretations” of the labeling. Sheehan, who filed the lawsuit on behalf of plaintiff Kristie Brownell in November 2022, alleged that Starbucks was misrepresenting that the coffee contains no additives. Scullin noted that Sheehan had filed 18 lawsuits in his district since 2021 – with none making it past the motion to dismiss stage. Scullin said he would decide on Sheehan’s specific sanctions later. Neither Sheehan, who is based in Great Neck, New York, nor his attorneys immediately responded to requests for comment. Attorneys for Starbucks, which was not involved in the sanctions efforts, did not respond to a request for comment. Sheehan, who has garnered headlines for his lawsuits over product labeling, has said that he filed more than 500 lawsuits between January 2020 and April 2023. He has filed lawsuits claiming Kellogg's Strawberry Pop Tarts don’t contain enough strawberries and Walmart’s fudge mint cookies don’t contain any actual fudge or mint. Kellogg and Walmart beat the claims, court records show. In a May court filing in another case where a judge said he was considering sanctions, Sheehan said that he had never been sanctioned in the hundreds of cases he had filed against the biggest food companies. Scullin granted Starbucks’ motion to dismiss in July, finding that the plaintiff hadn’t shown there was added potassium in the coffee or that a reasonable consumer would have expected “100% Arabica coffee” to mean no additives. The case is Kristie Brownell et al v. Starbucks Coffee Corp, U.S. District Court for the Northern District of New York, 5:22-cv-01199. For Spencer Sheehan: Paul Ferrara and Daniel Rose of Costello Cooney & Fearon For Starbucks: Paul Garrity, Robert Guite and Sascha Henry of Sheppard Mullin (Reporting by Diana Jones) ((Diana.Jones2@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-30	WMT	Investors in Walmart Inc (Symbol: WMT) saw new options begin trading today, for the January 2024 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the WMT options chain for the new January 2024 contracts and identified one put and one call contract of particular interest. The put contract at the $150.00 strike price has a current bid of $1.00. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $150.00, but will also collect the premium, putting the cost basis of the shares at $149.00 (before broker commissions). To an investor already interested in purchasing shares of WMT, that could represent an attractive alternative to paying $155.09/share today. Because the $150.00 strike represents an approximate 3% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 76%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 0.67% return on the cash commitment, or 5.66% annualized — at Stock Options Channel we call this the YieldBoost. Below is a chart showing the trailing twelve month trading history for Walmart Inc, and highlighting in green where the $150.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $165.00 strike price has a current bid of 30 cents. If an investor was to purchase shares of WMT stock at the current price level of $155.09/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $165.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 6.58% if the stock gets called away at the January 2024 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if WMT shares really soar, which is why looking at the trailing twelve month trading history for Walmart Inc, as well as studying the business fundamentals becomes important. Below is a chart showing WMT's trailing twelve month trading history, with the $165.00 strike highlighted in red: Considering the fact that the $165.00 strike represents an approximate 6% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 0.19% boost of extra return to the investor, or 1.64% annualized, which we refer to as the YieldBoost. The implied volatility in the put contract example above is 17%. Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $155.09) to be 16%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com. Top YieldBoost Calls of the Dow » Also see: Funds Holding ABEO IPV shares outstanding history ETFs Holding CHFC The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-30	WMT	In early trading on Thursday, shares of Salesforce topped the list of the day's best performing Dow Jones Industrial Average components, trading up 8.9%. Year to date, Salesforce registers a 89.1% gain. And the worst performing Dow component thus far on the day is Walgreens Boots Alliance, trading down 1.4%. Walgreens Boots Alliance is lower by about 47.2% looking at the year to date performance. Two other components making moves today are Walmart, trading down 0.7%, and Walt Disney, trading up 1.1% on the day. VIDEO: Dow Movers: WBA, CRM The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-30	WMT	InvestorPlace - Stock Market News, Stock Advice & Trading Tips Look around a little and you can find stocks that have gained a lot this year. The Magnificent Seven tech stocks are getting all the media attention, but they are not the only securities that have posted impressive gains. The narrative that thecurrent stock marketrally is concentrated in only a handful of mega-cap tech stocks is not really accurate. There are other growth stocks that have increased 50% or more since the start of 2023. Many of these other companies have seen significant boosts in their share prices since they issued better-than-expected third-quarter financial results. As the year draws to a close and the rally in equities gathers steam, these less well-known stocks appear to have momentum behind them and could scale new heights in 2024. If you are looking for the best growth stocks to buy in December, take a look at these top three choices. PDD Holdings (PDD) Source: Natee Photo / Shutterstock PDD Holdings (NASDAQ:PDD) is a Chinese discount e-commerce company. Some analysts describe it as a cross between Amazon (NASDAQ:AMZN) and Walmart (NYSE:WMT). While not as well known as other similar Chinese companies, PDD Holdings is proving to be a major growth stock. The company’s share price soared 16% immediately after it reported quarterly results that crushed Wall Street estimates. The growth comes as the company’s discount products appeal to consumers amid an economic slowdown in China. PDD, which owns discount online platforms Pinduoduo in China and Temu internationally, announced third-quarter earnings per share (EPS) of 11.61 Chinese yuan ($1.64 USD). Revenue in Q3 totaled 68.8 billion yuan ($9.7 billion USD). Both numbers were well above the consensus estimates of analysts who forecast earnings of 8.95 yuan a share on revenue of 55.2 billion yuan. PDD’s earnings were up 35% from a year ago, while its revenue grew 94% year-over-year (YOY) in Q3. PDD stock is now up 67% this year and appears to have momentum behind it, making it one of the top growth stocks recommended right now. Zscaler (ZS) Source: Sundry Photography / Shutterstock.com For a lesser known cybersecurity firm whose stock is growing at a brisk clip, checkout Zscaler (NASDAQ:ZS). The company just reported blowout quarterly results that trounced Wall Street forecasts and showed continued growth across the company. Zscaler reported EPS of 67 cents for what was its fiscal first quarter, which was well above analyst forecasts of 49 cents. Revenue totaled $496.7 million, up 40% from a year ago, and ahead of the $473 million expected on the Street. Zscaler said that its billings during the quarter rose 34% to $456.6 million, which also beat consensus estimates of $441 million. ZS stock initially declined 6% after company executives said they intend to boost spending to help grow market share. But the stock quickly reversed course and rose 1%. In terms of guidance, Zscaler forecasts revenue of $505 million to $507 million and EPS of 57 cents to 58 cents for the current quarter. That guidance was better than the consensus view among analysts. Year-to-date (YTD), ZS stock is up 81%, bringing its five-year gain to over 400%. Investors wanting one of the best growth stocks available right now should definitely take a look at ZS. Pinterest (PINS) Source: photobyphotoboy / Shutterstock For another red hot growth stock, see Pinterest (NYSE:PINS). The social media company’s stock jumped 18% higher after it reported strong Q3 results that beat estimates on both the top and bottom lines. PINS stock has now gained 32% in the last month and is up 45% YTD. The momentum in the stock began to build after Pinterest reported EPS of 28 cents compared to the 20 cents that had been expected among analysts. Revenue rose 11% from a year earlier to $763.2 million in the quarter, also beating forecasts. Equally important, the company said that the number of worldwide monthly active users on its platform rose 8% during Q3 from a year ago to 482 million. Analysts were expecting 473 million monthly users. Average revenue per user was $1.61, topping projections of $1.59. Looking ahead, Pinterest said it expects revenue growth of 11% to 13% in the current fourth quarter. The company also said that its fourth-quarter operating expenses will likely decline by 13% YOY. These results were music to the ears of both investors and analysts who have been bidding PINS stock up on expectations that the company has now successfully emerged from its post-pandemic hangover and is back in growth mode. PINS is another one of the best growth stocks that investors should be buying right now. On the date of publication, Joel Baglole did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia. More From InvestorPlace Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In. The #1 AI Investment Might Be This Company You’ve Never Heard Of The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post If You Can Only Buy One Growth Stock in December, It Better Be One of These 3 Names appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-30	WMT	Recent data point to a record shopping season for Shopify (SHOP), which saw Black Friday sales grow 22% y/y. Additional reports from Adobe Analytics show a strong $9.8 billion Black Friday season. But a successful Black Friday doesn’t necessarily point to a strong 4Q for retail. This note discusses a couple of ways to play the retail sector during periods of possible consumer weakness including online retail ETFs and discount retailers/staples ETFs. E-commerce continues to take a share of total retail sales. In my most recent note, I forecasted U.S. e-commerce sales for 3Q at 15.8% of total retail sales. Actual e-commerce sales were 15.6% of total retail sales. That is slightly lower than expected but within a reasonable range based on the adjustment factors I used. Regardless, e-commerce continues to take market share for total retail. Looking forward to 4Q, I expect a continued increase in e-commerce market share. Consumers are shopping during extended Black Friday sales ahead of the holidays even as total retail sales growth deteriorates. This was a big theme last year. But consumers are even tighter on cash this year. They are more likely to pull holiday spending forward for Black Friday. Still, online shopping is driven largely by discretionary areas like clothing, accessories, and other general merchandise (in contrast to areas like food and healthcare). These areas will likely see some overall pressure along with the broader consumer discretionary sector. To sum up — consumer discretionary goods may not be out of favor yet. But I would focus on the online shopping/omnichannel portion of the sector for the remainder of the year. Consumer staples sector likely benefits and currently trading at a relatively lower value. In another previous note, I wrote about the rotation from consumer discretionary to consumer staples. Staples are typically more stable when the economy is weak. Why? Because spending on necessary goods typically does not change throughout the economic cycle. This year, however, consumers are still valuing entertainment like restaurants and concerts. This will likely remain a sizable share of their wallet spending this quarter. To save money in other spending areas, consumers will use several strategies: Buy now, pay later Increased credit card spending Swapping to bulk, discount groceries Broadly, staples should benefit but I see the biggest benefit in discount grocers including Walmart (WMT), its discount branch (Sam’s Club), and Costco (COST). Discount retail model most likely to benefit out of staples. Walmart, for example, reported its earnings on November 16 and it looked relatively good (despite a drop in its stock price) — most financial metrics were up year-over-year, and the company even raised its net sales and EPS full-year forecasts. E-commerce sales were up 15% globally, led by pickup and delivery. E-commerce sales are now 15% of total sales — about in line with the national average. Additionally, over half of Walmart’s sales come from staples, which has given it a defensive edge over competitors like Target (TGT) which sells more discretionary items and caters to middle and higher-income consumers. Previously Costco had also reported a good earnings quarter, with higher net sales despite membership fees increasing 13.7% in the quarter. Discount retailers like Costco and Sam’s Club benefit in the current environment as shoppers look for a “no frills” grocery experience for food and healthcare necessities instead of a higher-end grocer like Whole Foods or other organic grocers. Discount retailers also benefit from the profit line as they trade in time/resources on displays and aesthetics in exchange for setting up their store like a warehouse with merchandise still on pallets. But while these signs point to a potential rotation toward staples vs. discretionary, staples prices are still underperforming relative to discretionary prices. I believe staples — led by discount retailers — will show resilience vs. discretionary — particularly during and post-holiday season — and lower prices might provide a good entry point. Bottom Line: Besides individual stocks like Amazon, Walmart, and other big retail names, it may be simpler for investors to take advantage of shifts in consumer behavior through broader sector and industry ETFs. While online retail ETFs shown above like Amplify Online Retail ETF (IBUY), Proshares Online Retail ETF (ONLN), Global X E-Commerce ETF (EBIZ), Franklin Disruptive Commerce ETF (BUYZ), and First Trust S-Network E-Commerce ETF (ISHP) may show some weakness along with the broader retail sector, they may be better able to withstand downturns as online shopping typically remains resilient in times when consumers are spending less money. Alternatively, the broader consumer staples sector is likely to benefit during similar economic periods—particularly led by discount retailers. This means that sector ETFs like Consumer Staples Select Sector SPDR Fund (XLP), Vanguard Consumer Staples ETF (VDC), and iShares US Consumer Staples ETF (IYK) (along with other ETFs listed above) may show strength as the discretionary sector falls. For more news, information, and analysis, visit the Disruptive Technology Channel. vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for ISHP and IBUY, for which it receives an index licensing fee. However, ISHP and IBUY are not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of ISHP and IBUY. Read more on ETFTrends.com. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-30	WMT	InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Dow Jones Industrial Average (DJIA), introduced in 1896 by Charles Dow, is renowned for its blue-chip, large-cap stocks. But this year has been underwhelming for Dow stocks, disappointing investors who were used to more significant growth. However, recent developments signal a change for the Dow. On November 24, the DJIA surged by 0.5%, an uplift of 184.74 points. This notable rise was underpinned by 23 of the 30 stocks in the index closing in the green. This positive momentum reflects a broader trend, with the Dow demonstrating a 6% rise in 2023 so far, hinting at a resilient comeback. A recent Reuters poll projects the Dow to close 2024 near the 38,000 mark, an impressive 8% uptick from its current position. This indicates that the Dow is embarking on a sustained upward trajectory. These Dow stocks further reinforce this promising trend. Microsoft (MSFT) Source: The Art of Pics / Shutterstock.com Microsoft (NASDAQ:MSFT) has been a beacon of growth in the investment world. It has pushed the boundaries of innovation, particularly in AI, recently revealing around 100 new AI-focused initiatives. These include modernizing cloud infrastructure and incorporating technologies, like ChatGPT, into diverse platforms. Microsoft further advances its AI journey with the launch of its in-house AI chips, Azure Maia 100 and Cobalt 100. Moreover, in its recent quarter, Microsoft reported a stellar $56.5 billion in revenue. This revenue surge, coupled with a 27% net income increase, was primarily fueled by the strong performance of Microsoft Cloud. Notably, the Intelligent Cloud segment also experienced a significant 19% revenue growth, highlighting the stock’s strength. Microsoft’s shares have surged by almost 242% in the past five years, and analysts recommend a strong buy with a 7.41% potential upside. This remarkable performance highlights the company’s potential to become a top pick in numerous investment portfolios. Visa (V) Source: Kikinunchi / Shutterstock.com Our next option in Dow stocks to buy is digital payments sector titan, Visa (NYSE:V). The company is innovating cross-border remittances by focusing on digitizing transactions to make them quicker, simpler and more cost-effective. This strategic move is a response to the increasing demand for efficient international digital money transfers. Moreover, Visa’s tech advancements stem from a significant $3 billion investment in AI over the last decade. This has resulted in a cutting-edge platform with hundreds of AI models. These models, crucial to over 100 products like Visa’s CyberSource Decision Manager, played a key role in preventing around $27 billion in fraud in 2022. Furthermore, in the fourth quarter, Visa reported a GAAP net income of $4.7 billion, an 18.8% YoY increase. This strong financial performance resulted in a 10.6% YoY surge in revenue, solidifying it as a robust player in the digital landscape. Walmart (WMT) Source: fotomak / Shutterstock.com Walmart (NYSE:WMT) has been consistently thriving, with its stock rising 11% year-to-date and 67% over the past five years. Walmart’s promise of lower prices than competitors continues to attract consumers seeking cost-effective solutions. Moreover, Walmart is investing over $9 billion in the next two years to enhance the layouts and technology of over 1,400 U.S. stores. Walmart is embracing cutting-edge technologies like voice shopping in its app, augmented reality tools and GenAI. This strategy is yielding results, with a recent quarter showing a 5.26% rise in revenue to $160.8 billion. The increase is fueled by higher sales and pickup and delivery services. These positives highlight the company’s solid standing in the dynamic retail market. On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University. More From InvestorPlace ChatGPT IPO Could Shock the World, Make This Move Before the Announcement Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post 3 Dow Stocks to Pick Up Before the Year-End Rally appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-30	WMT	InvestorPlace - Stock Market News, Stock Advice & Trading Tips Over the last few years, a small army of critics has descended on Amazon (NASDAQ:AMZN) stock. Financial analysts fear it has lost its momentum. Environmentalists criticize its use of energy. Privacy advocates say it cares nothing about their rights. Through it all, Amazon has remained the largest holding in my retirement account. I have seen this movie before. In the 1980s, IBM (NYSE:IBM) was the target of everyone’s ire. In the 1990s, this switched to AT&T (NYSE:T). In the 2000s, Walmart (NYSE:WMT) drew the haters. During the last decade, it was Dollar General (NYSE:DG). When you have a huge company, when you dominate an economy, they don’t want to let you do it. Where Haters Are Right About AMZN Stock Nothing grows to the sky, not even Amazon. Growth has slowed this decade, from 37% in 2020 to just 9% last year. (It’s expected to slow further this year.) Operating cash flow last year was nearly flat. Amazon laid off 18,000 workers early this year. It seems AMZN stock can be hit by economic cycles just like other retailers. Just like the other Cloud Czars, Amazon has also faced higher costs this year thanks to AI. Nvidia (NASDAQ:NVDA) can get what it wants for its chips because, as I’ve noted, it controls the software stack. When sales pass $500 billion/year, things are never perfect. Just this fall Amazon has had layoffs in its games unit, its music business, at its Alexa division even at its crown jewel, Amazon Web Services. Amazon has had to play catch-up on AI and reconfigure its distribution system. It closed 99 logistics centers through May. Amazon has been hit by thieves who abused its third-party sales system, ending free returns. It raised the cost of Amazon Prime in 2022, and next year will charge an extra $3/month to subscribers who want to avoid ads on Prime video. Where Haters are Wrong First, you need scaled computing and warehousing to deliver low costs. Therefore, Amazon built its cloud data centers and warehousing systems in the first place. Second, if I’m to deliver personal service to you, I must know about you. This is as true for Amazon as the bartender who knows how you like your martini. Amazon itself is one of the great miracles of the 21st century. An order taken in the morning may be fulfilled later the same day. Amazon Web Services alone may be worth twice as much as the entire company. I have been as hard on Bezos’ successor, Andy Jassy, as anyone. So let me say this simply. I was wrong. All his 2023 moves make sense, both the cutbacks and the price hikes. Once that $3/month Prime charge comes in, Jassy will know how many people are getting Prime for the content and how many just want free shipping. The Bottom Line AMZN stock will keep growing. Sales, profits, and cash flow will improve. AWS will keep its lead in the cloud. The entire company will continue building on its global footprint. I even expect Alexa to make a comeback. This time there will be some real intelligence behind her, not just a list of my orders and suggestions for up-sells. There’s a lot of room for improvement at Amazon, which is a good thing. Books, even e-books, are now treated as an afterthought. Government regulators are going to come after Amazon hard. So will environmentalists and privacy advocates. But no other Cloud Czar is as diversified as Amazon. None is better equipped to weather the storms. And we haven’t even mentioned health care. As of this writing, Dana Blankenhorn had LONG positions in AMZN and NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Dana Blankenhorn has been a financial and technology journalist since 1978. He is the author of Technology’s Big Bang: Yesterday, Today and Tomorrow with Moore’s Law, available at the Amazon Kindle store. Tweet him at @danablankenhorn, connect with him on Mastodon or subscribe to his Substack. More From InvestorPlace The #1 AI Investment Might Be This Company You’ve Never Heard Of Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post AMZN Stock Forecast 2024: Why the Hate for Amazon.com? appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-30	WMT	By Lisa Baertlein and Arriana McLymore LOS ANGELES/NEW YORK, Nov 30 (Reuters) - As holiday shoppers return items purchased during Black Friday and Cyber Monday online shopping sprees, more U.S. retailers could tell them to keep items that cost more to ship back than they are worth. This year, 59% retailers offer so-called "returnless" or "keep it" policies for unwanted products whose returns costs exceed their value, according to returns services firm goTRG, which surveyed 500 executives at 21 major retailers, including Walmart WMT.N and Amazon.com AMZN.O. Last year, 500 retail executives said 26% of companies had such policies, said goTRG CEO Sender Shamiss, whose company counts Walmart among its clients. They didn't break out the number of companies involved in last year's survey. As retailers adopt technology to root out excess costs, more are embracing returnless policies for certain online purchases, said Shamiss, who declined to name companies that use them. That information is "not something that retailers want out there" due to worries the policies could be abused by shoppers, he said. The previously unreported survey results come as U.S. shoppers are expected to return $173 billion worth of holiday purchases in the U.S. this year, 28% more than last year, according to Optoro. The firm helps retailers manage returns, which typically rise after pre-Christmas sales like Black Friday and Cyber Monday and continue beyond Christmas. "Our returns Super Bowl starts the day after Black Friday and goes into February," said Optoro CEO Amena Ali, comparing her sector's busy season to one of America's biggest sporting events. The typical return costs retailers about $30. Returns drain profits because they must be transported, sorted and resold - often at a discount - or disposed of at a loss. That has helped prompt almost 90% of retailers to revise a range of policies this year, Ali said. Those changes also include offering store credit, charging for some returns and encouraging shoppers to bring online purchases back to physical stores. "You just can't afford to ignore it," she said of returns costs. Reuters recently viewed a Walmart YouTube tutorial from February that helps marketplace sellers set parameters for their own return-less policies. Walmart said it balances customer experience and its bottom line when considering exchanges and returns. That includes testing ways to help third-party sellers manage costs. The company called the training video out of date and it is now labeled private. Seventeen shoppers interviewed by Reuters said companies including Amazon.com, Chewy.com CHWY.N, eBay EBAY.O, Temu PDD.O, Keurig KDP.O, Wayfair W.N and t-shirt seller True Classic told them not to return goods valued from around $20 to as much as $300 - including several that were defective or shipped in error. Amazon said it allows customers to keep items on "a small number of returns as a convenience and to help keep prices low." Wayfair customers in certain cases may have the option to keep items at a discount, according to the online furniture seller. Other retailers named by the shoppers did not respond to requests for comment. THE RETURNS RUSH The percentage of returns was nearly double pre-pandemic levels last year, standing at 16.5% of total U.S. retail sales - or $816.8 billion worth of goods, according to data from Appriss Retail and the National Retail Federation. Sellers of underwear, bedding and food were among the first adopters of keep it returns due to hygiene concerns or health safety rules. Shapewear seller Shapermint uses the policy to build loyalty by asking shoppers to donate the items or gift them to friends, said Gabrielle Richards, brand director at Trafilea, which owns the company. The practice went mainstream during the e-commerce boom of the early pandemic, when shipping and delivery costs soared and warehouses were bursting at the seams. Companies stopped taking back unwanted t-shirts, pet toys or furniture that would increase costs and add to supply-chain backups. These days, retailers weigh the cost of the return against the value of the shopper, with big spenders more likely to be eligible, experts said. Eight of 17 shoppers interviewed by Reuters were told to keep goods purchased on Amazon.com, mostly from outside sellers. Items ranged from low-value goods like underwear and a raincoat to an incorrectly-sized mattress. Amazon, Shapermint and other retailers battle potential fraud with technology that enables them to extend the service to trusted customers. "We take fraud very seriously and when bad actors attempt to evade our controls, we take action and work with law enforcement to hold them accountable," Amazon said. Some sellers' anti-fraud efforts have alienated shoppers. Los Angeles-based photographer Pamela Peters late last summer got a refund for a $300 portable air conditioner that blew hot air - but only after she sent the Amazon seller a picture of the unit with the power cord cut. "It's so wasteful," said Peters, who disposed of the unit before buying a replacement from a different retailer. GRAPHIC-Over 16% of retail sales in the US are returned https://tmsnrt.rs/3R22e2G (Reporting by Lisa Baertlein in Los Angeles and Arriana McLymore and Siddharth Cavale in New York, Editing by Nick Zieminski) ((lisa.baertlein@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-29	WMT	Adds details on results in paragraph 5 and background in paragraph 2-3 Nov 29 (Reuters) - Dollar Tree DLTR.O trimmed its full-year sales forecast on Wednesday, signaling that persistent inflation was weighing on demand for non-essential products at its stores. As higher food prices, borrowing costs and rising credit card debt hammers household budgets, customers are curtailing the purchase of higher-margin discretionary items such as party products and toys. Several U.S. retailers including Walmart WMT.N, Best Buy BBY.N and Lowe's LOW.N have also sounded caution in recent weeks about spending during the crucial holiday season, which is expected to grow this year at its slowest pace in five years. Dollar Tree said it now expects fiscal 2023 consolidated net sales to be between $30.5 billion and $30.7 billion, compared with a prior estimate of $30.6 billion to $30.9 billion. Analysts on average expect a full-year revenue of $30.82 billion, according to LSEG data. The company also expects per share profit in the range of $5.81 to $6.01 in fiscal 2023, compared with its prior outlook of between $5.78 and $6.08. Analysts on average expect a profit of $5.97 per share. (Reporting by Granth Vanaik in Bengaluru; Editing by Krishna Chandra Eluri) ((Granth.Vanaik@thomsonreuters.com \| X : https://twitter.com/Vanaik_Granth;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-29	WMT	Stocks are moving higher today after an upward revision to third-quarter GDP and some positive comments on cooling inflation from Atlanta Fed President Raphael Bostic, which suggests we could see a more accommodative interest rate environment at some point in 2024. That said, with the OECD forecasting slower economic growth for both the U.S. and China next year, strapped consumers and investors alike may want to take a fresh look at discount retailers. In particular, the two top retail giants in the country - Costco (COST) and Walmart (WMT) - look compelling against the current economic backdrop, due in part to their sheer scale and sourcing capabilities. Plus, both retailers have a strong history of paying regular dividends backed by strong earnings, which makes them worthwhile income picks in any environment. For investors looking to add some exposure to quality retail names, here's a comparison of COST vs. WMT to see which dividend stock is a better value - with more upside potential - at current levels. COST vs. WMT on Quarterly Earnings Both retailers posted a strong set of numbers for their latest quarterly results. For Q3 2024, Walmart's revenues increased by 5.2% from the previous year to $160.8 billion, which comfortably topped consensus estimates, while EPS improved by 2% to $1.53 in the same period. Free cash flow improved 19.3% year-over-year to $4.3 billion. WMT also raised its FY 2024 earnings and revenue guidance, although management's EPS range of $6.40 to $6.48 fell slightly short of Wall Street's $6.50 estimate. Longer term, Walmart's revenue and EPS have expanded at a 5-year CAGR of 4.53% and 28.05%, respectively. In its fiscal Q4, Costco's revenues of $78.9 billion were up 9.5% from the year-ago period, while EPS rose 15.7% to $4.86. Both figures beat Wall Street's consensus estimates. Costco's liquidity position also remained solid, as the company closed the year with a cash and cash equivalents balance of $13.7 billion (up 34.3% YoY), well above its long-term debt levels of $5.4 billion (down 17.1% YoY). Over the past five years, Costco has grown revenues and EPS at a CAGR of 11.34% and 14.84%, respectively. Stock Price Performance and Dividend Yield In terms of share price performance in 2023, Walmart has gained less than 10% on a YTD basis, while Costco has rallied 30% over the same period. For comparison, the S&P 500 Index ($SPX) is up about 19%. www.barchart.com While it's underperformed the broader market somewhat, Walmart is now trading at a more attractive valuation than Costco, based on some key metrics. On the basis of forward price/earnings, Walmart is priced at 24.5, compared to Costco's 37.9. Likewise, WMT is also more attractively valued on the basis of forward price/sales (WMT: 0.67 vs. COST: 1.04) and price/cash flow (WMT: 14.69 vs. COST: 27.21). Walmart offers a dividend yield of 1.43%, backed by five decades of consecutive growth. That establishes WMT as a Dividend King, and a top choice for income investors. The dividend yield for COST is 0.67%, which falls below the sector median - but that yield is backed by nearly 20 years of consecutive increases, putting the stock on pace for Dividend Aristocrat status before the end of the decade. Plus, the shareholder payout is growing faster than the norm; the CAGR for Costco's dividend hovers in the 12% range. Future Growth Drivers Notably, in fiscal Q2 of this year, Walmart's online sales rose sharply compared to a decline reported by its competitors Macy's (M) and Target (TGT). The Walmart+ subscription service is competing with Amazon (AMZN) in the online delivery space, and - with its subscription price of $98/year - at a lower price point than Prime. Another growth driver for Walmart will be its strong presence in India through Flipkart, an online e-commerce platform in which it acquired a 77% stake for $16 billion in 2018 (now up to 80%). Not only is Flipkart one of the biggest online retailers in India, but Myntra (a Flipkart company) is also India's largest e-commerce platform for fashion and lifestyle products. This leaves Walmart well-positioned to benefit from the critical Indian e-commerce market. Meanwhile, with limited or no presence in rapidly growing consumer markets such as China (5 warehouses) and India (no warehouses), the headroom for growth remains substantial for Costco. Another growth driver for Costco remains its very popular membership program, which has 71 million households and 127.9 million total cardholders at a renewal rate of about 92.7%. That translates into revenue generation of about $4.6 billion in membership fees each year. With signs of an expected hike in membership fees, this can be a sustainable and solid growth driver for Costco. Analysts Project More Upside for Walmart Overall, analysts are bullish about both Walmart and Costco - but slightly more so when it comes to Walmart. Analysts have a “Strong Buy” rating for Walmart with a mean target price of $179.56. This denotes an upside potential of roughly 15% from current levels. Out of 30 analysts covering the stock, 21 have a “Strong Buy” rating, four have a “Moderate Buy” rating, and five have a “Hold” rating. www.barchart.com Similarly, for Costco, analysts have a consensus “Strong Buy” rating. Out of 28 analysts covering the stock, 19 have a “Strong Buy” rating, three have a “Moderate Buy” rating, and six have a “Hold” rating. However, the mean target price for COST is $599.96 - signaling an expected upside potential of less than 2% from current levels. www.barchart.com On the date of publication, Pathikrit Bose did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-29	WMT	By Richa Naidu and Siddharth Cavale LONDON/NEW YORK, Nov 29 (Reuters) - Walmart WMT.N is importing more goods to the United States from India and reducing its reliance upon China as it looks to cut costs and diversify its supply chain, data seen by Reuters shows. The world's largest retailer shipped one quarter of its U.S. imports from India between January and August this year, according to bill of lading figures shared with Reuters by data firm Import Yeti. That compared with just 2% in 2018. The data shows that only 60% of its shipments came from China during the same period, down from 80% in 2018. To be sure, China is still Walmart's biggest country for importing goods. The shift illustrates how the rising cost of importing from China and escalating political tensions between Washington and Beijing are encouraging large U.S. companies to import more from countries including India, Thailand and Vietnam. In the U.S., shoppers face higher interest rates and high food prices, eroding household savings and prompting Walmart and other retailers to become cautious in their outlook for consumer spending. "We want the best prices," Andrea Albright, Walmart's executive vice president of sourcing said in an interview. "That means I need resiliency in our supply chains. I can't be reliant on any one supplier or geography for my product because we're constantly managing things from hurricanes and earthquakes to shortages in raw materials." In a statement, Walmart said the bill of lading data painted a partial picture of what it sourced and that creating redundancy "does not necessarily mean" it was reducing reliance on any of its sourcing markets. "We're a growth business and are working to source more manufacturing capacity," Walmart said. India has emerged as a key component of Walmart's efforts to build that manufacturing capacity, Albright said. Walmart has been accelerating growth in India since 2018, when it bought a 77% stake in Indian e-commerce firm Flipkart. Two years later, it committed to import $10 billion of goods from India each year by 2027. That is a target it remains on track to hit, Albright said. It is currently importing around $3 billion worth of goods from India each year. WORKFORCE, TECHNOLOGY ARE KEY DRAWS Walmart is importing goods ranging from toys and electronics to bicycles and pharmaceuticals from India to the U.S., Albright said. Packaged food, dry grains and pasta are also popular imports from India, she added. India, whose stock market has risen to record highs this year, is viewed as the country best equipped to outperform China in low-cost, large-scale manufacturing. Its rapidly growing workforce and technological advancement were a draw for Walmart, Albright said. China on the other hand reported its first decline in population in six decades last year. Walmart started its sourcing operations in Bangalore in 2002. Now, the company employs more than 100,000 people, including temporary workers, in the country spread across several offices under its Walmart Global Tech India unit, Flipkart Group, PhonePe and sourcing operations. Walmart CEO Doug McMillon met Indian Prime Minister Narendra Modi in May this year, a meeting that Modi termed "a fruitful one." "Happy to see India emerge as an attractive destination for investment," Modi wrote on X, formerly known as Twitter, on May 14. McMillon said Walmart would "continue to support the country's manufacturing growth and create opportunity." Walmart rival Amazon AMZN.O said this month it is targeting merchandise exports worth $20 billion from India by 2025. Freewill Sports, a small Indian supplier of soccer balls, is one company that has benefited, its Chief Executive Rajesh Kharabanda said in an interview. The rising cost of shipping goods from China has also contributed to the switch to India, supply chain experts say. "Sourcing from mainland China has become less competitive because of rising labor costs versus other manufacturing centers," said Chris Rogers, research analyst at S&P Global Market Intelligence's supply chain analysis group Panjiva. China's minimum wage changes from province to province and sometimes even from city to city, with a range between 1,420 yuan per month and 2,690 yuan per month ($198.52 - $376.08). Meanwhile, average wages for unskilled and semi-skilled workers in India range from about 9,000 Indian rupees to 15,000 Indian rupees a month ($108.04 - $180.06), according to central bank estimates. SUPPLY CHAIN SNAGS The COVID-19 pandemic exposed weaknesses in global supply chains, showing U.S. importers to be over-reliant on a small number of markets. "Planning for a geopolitical event is like planning for a hurricane," said Albright. "What I can control is where my product is coming from and how do I make sure that Christmas still happens if something happens in our supply chain." Pakistan and Bangladesh have also benefited from Walmart's strategy, expanding as suppliers of home and apparel products, Albright said. Last year, at least eight Freewill shipments sailed to Walmart warehouses from Mundra Port in Gujarat, the largest private port in India, according to U.S. import data. "There is a newfound confidence in the Indian manufacturing industry and also the availability of factory infrastructure," Freewill's Chief Executive Rajesh Kharabanda said in an interview. India's central bank forecasts that the country's economy will expand 6.5% this fiscal year. China is expected to grow around 5% this year. "In the last 12 to 18 months there has certainly been a bigger impact," said Shekhar Gupta, whose family business Devgiri has been selling floor rugs to Walmart for about a decade. "That's when Walmart started putting a true strategy behind how they wanted India at the center of their growth." ($1 = 7.1528 Chinese yuan renminbi) ($1 = 83.3050 Indian rupees) (Reporting by Richa Naidu and Siddharth Cavale; additional reporting by Casey Hall and Manoj Kumar. Editing by Matthew Scuffham and Sharon Singleton) ((richa.naidu@tr.com; Follow me on Twitter https://twitter.com/Richa_Writes; +44 755 755 9587;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-29	WMT	Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Royal Caribbean Group (Symbol: RCL), where a total of 83,380 contracts have traded so far, representing approximately 8.3 million underlying shares. That amounts to about 294.6% of RCL's average daily trading volume over the past month of 2.8 million shares. Particularly high volume was seen for the $60 strike put option expiring January 19, 2024, with 37,000 contracts trading so far today, representing approximately 3.7 million underlying shares of RCL. Below is a chart showing RCL's trailing twelve month trading history, with the $60 strike highlighted in orange: General Motors Co (Symbol: GM) options are showing a volume of 229,195 contracts thus far today. That number of contracts represents approximately 22.9 million underlying shares, working out to a sizeable 134% of GM's average daily trading volume over the past month, of 17.1 million shares. Especially high volume was seen for the $32 strike call option expiring December 01, 2023, with 15,662 contracts trading so far today, representing approximately 1.6 million underlying shares of GM. Below is a chart showing GM's trailing twelve month trading history, with the $32 strike highlighted in orange: And Walmart Inc (Symbol: WMT) options are showing a volume of 99,036 contracts thus far today. That number of contracts represents approximately 9.9 million underlying shares, working out to a sizeable 121.1% of WMT's average daily trading volume over the past month, of 8.2 million shares. Particularly high volume was seen for the $160 strike call option expiring December 01, 2023, with 12,046 contracts trading so far today, representing approximately 1.2 million underlying shares of WMT. Below is a chart showing WMT's trailing twelve month trading history, with the $160 strike highlighted in orange: For the various different available expirations for RCL options, GM options, or WMT options, visit StockOptionsChannel.com. Today's Most Active Call & Put Options of the S&P 500 » Also see: Top Stocks Held By Paul Singer LXP Options Chain HCA market cap history The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-29	WMT	Below is Validea's guru fundamental report for WALMART INC (WMT). Of the 22 guru strategies we follow, WMT rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields. WALMART INC (WMT) is a large-cap growth stock in the Retail (Grocery) industry. The rating using this strategy is 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. MARKET CAP: PASS STANDARD DEVIATION: PASS TWELVE MINUS ONE MOMENTUM: NEUTRAL NET PAYOUT YIELD: NEUTRAL FINAL RANK: FAIL Detailed Analysis of WALMART INC WMT Guru Analysis WMT Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam. Additional Research Links Top Large-Cap Growth Stocks Factor-Based Stock Portfolios Dividend Aristocrats 2023 High Insider Ownership Stocks Top S&P 500 Stocks About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-29	WMT	In early trading on Wednesday, shares of Nike topped the list of the day's best performing Dow Jones Industrial Average components, trading up 2.3%. Year to date, Nike has lost about 5.0% of its value. And the worst performing Dow component thus far on the day is UnitedHealth Group, trading down 1.1%. UnitedHealth Group is showing a gain of 0.8% looking at the year to date performance. Two other components making moves today are Walmart, trading down 0.5%, and Intel, trading up 1.9% on the day. VIDEO: Dow Movers: UNH, NKE The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-29	WMT	Many investors favor dividend stocks for their ability to reduce volatility, create capital gains in down markets, and provide steady income for long-term shareholders. However, it is well known that growth stocks have outperformed income stocks by a wide margin since 2007. Some academic studies have suggested that this performance gap between growth and dividend/value stocks may be due to the structural changes in the U.S. economy over the last 40 years. Specifically, the U.S. has shifted away from agriculture and manufacturing to more of a service- and knowledge-based economy. Image source: Getty Images. This change has created new opportunities for growth, especially in the biotech and tech industries. But it has also seemingly made investors less interested in companies operating in slower-growth sectors, even though many of these companies still generate ample free cash flows and pay regular dividends to shareholders. These trends have clear implications for investors who want to buy dividend stocks. Below is an analysis of data from 50 Dividend Kings in relation to their recent 12-month performance and how these trends should guide investors when choosing dividend stocks for their portfolio. Five guideposts Dividend Kings are comprised of companies that have raised their dividends for no less than half a century, making them an ideal group in which to explore the relationship between dividend yield and stock performance. The graph below sketches out the non-linear relationship between total returns over the past 12 months (assuming the dividend was reinvested) and a stock's divided yield one year ago (i.e., the yield investors would have observed prior to buying the stock). Image source: Author. Scatterplot of the 12-month preceding dividend yield versus total returns (assuming dividends were reinvested) on capital over prior 12 months for 50 companies on the list of Dividend Kings. Data covers the dates Nov.10, 2022 to Nov.10, 2023. Data sources include Yahoo! Finance, YCharts, among others. Note the above graph seems to indicate six stocks produced market-beating returns when in fact only five stocks did so. S&P Global stock narrowly missed the cut, and its corresponding data point only appears to be above the cut-off due to the enlargement of the plot points for readability purposes. These data offer five important takeaways for dividend investors: As a stock's dividend yield rises, its total returns tend to decrease. Nearly identical patterns have been observed in the academic literature with markedly larger sample sizes and over far longer time frames (1880 to 2020). There are multiple notable exceptions to this trend outside of the Dividend King space, but most come from companies operating in cyclical industries like oil and gas. The average yield of S&P 500 listed stocks (1.68% average over the past 12 months) seems to be an invisible barrier for market-beating performance within this top-tier group of dividend payers. This performance threshold is not readily detected in the academic literature, perhaps making it the first time such a threshold has been discussed in the financial media. To be upfront, though, a more thorough search of the literature may reveal similar findings. Dividend Kings with yields above the average S&P 500 index all failed to produced market-beating returns in this sample. High-yielders (greater than 4%) generally lost investors money in the past 12 months. This trend is especially true for investors who chose not to reinvest the dividend and instead decided to take it as part of an income strategy. Although the full analysis isn't being shown here for the sake of brevity, modeling data that account for the covariation among variables (including several fundamental traits like free cash flow and earnings per share) imply that dividend yield may act as a key barometer for a stock's risk premium. This finding is well-supported by several peer-reviewed studies with much larger datasets. Outliers and momentum The small group of Dividend Kings that beat out the broader market over the prior 12 months were MSA Safety (NYSE: MSA), Parker-Hannifin (NYSE: PH), W.W. Grainger (NYSE: GWW), Tennant Company (NYSE: TNC), and Walmart (NYSE: WMT). Of note, S&P Global narrowly missed the cut by 1.12%. Two common themes that unite these stocks is that they all pay a rather modest dividend and none of them trade at a bargain valuation. COMPANY TOTAL RETURN (%) DIVIDEND YIELD (%) P/E RATIO MSA Safety 18.2 0.98 100.2 Parker-Hannifin 40.5 1.63 24 W.W. Grainger 31.5 1.16 19.4 Tennant Company 28.1 1.51 18.8 Walmart 18.5 1.56 28.4 Author's own data compiled from multiple sources such as Morningstar, Charles Schwab, among others. The P/E ratio refers to the company's trailing-12-month price-to-earnings ratio a year ago, reflecting its value proposition ahead of the stock's future performance. Dividend yield represents the stock's yield 12 months prior to the study period. Furthermore, three of these five stocks fall within the 82 percentile in terms of total returns on capital among Dividend Kings over the past five years, with the exceptions being MSA Safety and Tennant Company. MSA Total Return Price data by YCharts. Over the prior 10 years, three of these top performers fell within the 86 percentile on this metric. Tennant Company and Walmart are the two stocks that have recently joined the list of top-performing Dividend Kings. Momentum is thus another important metric investors should bear in mind when selecting dividend stocks as capital-appreciation vehicles. MSA Total Return Price data by YCharts. Key takeaways Wall Street rarely bargain hunts in the dividend-stock landscape, and high yields generally spell trouble in terms of future returns on capital, especially over short periods of time. Moreover, large institutional buyers often stick with what works, a fact that becomes evident in the form of a stock's forward momentum over both short and long periods of time. Hence, retail investors should carefully consider a stock's yield, valuation, and forward momentum before hitting the buy button. 10 stocks we like better than Walmart When our analyst team has an investing tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Walmart wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of 11/27/2023 Charles Schwab is an advertising partner of The Ascent, a Motley Fool company. George Budwell has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends S&P Global and Walmart. The Motley Fool recommends Charles Schwab and Tennant and recommends the following options: short December 2023 $52.50 puts on Charles Schwab. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-28	WMT	InvestorPlace - Stock Market News, Stock Advice & Trading Tips Holiday shopping season has already kicked off. And despite a tepid outlook from analysts, Black Friday sales generated a whopping $9.8 billion in online sales in the U.S., a 7.5% rise year over year, as per an Adobe Analytics Report. Even better, Cyber Monday could be another top sales driver followed by Christmas. With that in mind, let’s take a look at the three retail stocks to buy that are primed for a holiday shopping rally. Retail Stocks to Buy: Amazon (AMZN) Source: Tada Images / Shutterstock.com Amazon (NASDAQ:AMZN) has become a global giant with its strong network and a large market share. With Black Friday sales and the upcoming holiday season, this is one retail stock that is set to bounce higher. Inflation is cooling and we have seen an improved sentiment in the market. Combined with higher consumer spending, this could be a great month for sleeper retail stocks. Amazon offers a diversified range of products and services including streaming and its dominant position in the market is hard to compete with. It is now trying to position itself as one of the front runners in the artificial intelligence (AI) race and has recently invested in Anthropic, an AI startup that will use AWS as the cloud provider and will develop AI models. The company has several advantages that will continue to drive growth in the coming years. With an improvement in the overall retail spending, we could see Amazon’s revenue numbers soar higher. Besides shopping, Amazon will continue to benefit from the cloud computing segment and could remain at the top of the industry. AMZN stock is trading at $147 today and is up 72% year to date. There isn’t much to worry about Amazon, as the economy improves, consumer spending improves and it will directly benefit the company. The current quarter could be very significant for the company and we could see some impressive numbers very soon. Target (TGT) Source: Sundry Photography / Shutterstock.com Target (NYSE:TGT) is another one of the top retail stocks to buy that directly benefits from an improvement in the retail industry. The major retailer could benefit from the sales and holiday shopping in the coming months. It has already reported mind-blowing third-quarter earnings and beat analyst expectations which led to a massive surge in the stock. In its most recent quarter, the company reported a 29% jump in operating income which hit $1.3 billion. EPS came in at $2.10 which is also the biggest rise since the pandemic. Management achieved this with cost-cutting efforts, whcih included reducing inventory in the slow-moving consumer goods segment. It also planned to invest in new and smaller stores to improve its market share. This investment will cost over $7 billion and I believe it will pay off in the long-term. Physical stores remain a strong business and will continue to do so in the near term. While the company does expect a slow holiday season, it intends to add over 10,000 new items to the store in addition to gifts under $25 which can help improve the financials. Shoppers who had been waiting for the holiday season and looking for the best deals might consider heading to Target now. Black Friday and the festival shopping season could be an ideal time for the company. The management aims to offer deals that will attract consumers to the store during the next four weeks. TGT stock is trading at $131 and jumped from $107 to $130 right after the results. I also believe the improved inflation report and improvements with consumer spending will work as a catalyst for the company. Walmart (WMT) Source: Jonathan Weiss / Shutterstock.com Another well-known retailer, Walmart (NYSE:WMT) couldn’t impress investors with the recent earnings update. However, there’s hope the holiday season can get it going. In its third quarter, WMT reported a 5% rise in comparable-store sales. It also saw higher consumer traffic as well as improved spending. Until the last quarter, consumer spending hadn’t picked up and people weren’t ready to spend aggressively on products. The company also saw an improvement in the operating margin and saw the cash flow hit $19 billion from $3 billion. This is another interesting metric worth considering. It means Walmart has enough liquidity to invest in growth and achieve higher market dominance. Trading at $156 today, WMT stock is up 9% year to date but still lower than the 52-week high of $169. The company is guiding for higher growth in the coming quarters and this should ensure higher returns on the investment. Management aims to avoid excess inventory and understands the market trends. It now aims to achieve sales of 5% to 5.5%, up from the previous forecast of 4% to 4.5%. As the company enters the holiday period with high consumer traffic, I believe it will ensure positive returns in the coming months. Additionally, it also enjoys a dividend yield of 1.46% which makes the stock more attractive. On the date of publication, Vandita Jadeja did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis. More From InvestorPlace ChatGPT IPO Could Shock the World, Make This Move Before the Announcement Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post 3 Sleeper Retail Stocks Primed for a Holiday Shopping Rally appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-28	WMT	Shares of Crown Castle Inc. (CCI) jumped 3.5% following reports that activist investor Elliott Management has bought a stake of over $2 million in the company Etsy, Inc.’s (ETSY) shares rose 3% after data showed solid online sales on Black Friday. Shares of Walmart, Inc. (WMT) gained on the broader retail rally. Affirm Holdings, Inc.’s (AFRM) shares surged 12% as an increasing number of consumers turned to Buy Now, Pay Later options for their Cyber Monday shopping. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.0% per year. So be sure to give these hand-picked 7 your immediate attention. See them now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Walmart Inc. (WMT) : Free Stock Analysis Report Crown Castle Inc. (CCI) : Free Stock Analysis Report Etsy, Inc. (ETSY) : Free Stock Analysis Report Affirm Holdings, Inc. (AFRM) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-28	WMT	Navigating the stock market is a bit like walking on a tightrope for investors. The temptation of making quick profits is always there, but it's equally important to have a solid foundation of stable, long-term investments. Finding the right balance between these two aspects is vital for successful investing. Instead of going after stocks that promise big rewards but come with high risks, investors are better off carefully studying the market and creating a well-thought-out investment strategy. It’s wise to concentrate on companies that have a history of success, with a proven ability to handle tough economic times. Hence, when it comes to long-term stability and consistent growth, market pundits place their bets on highly reputed companies with humongous market capitalization. These big players are called blue-chip companies. Blue-chip stocks are strong financially and have a history of giving solid returns to their investors. Blue-chip companies tend to be less vulnerable to sudden fluctuations in stock prices, rendering them a dependable choice for both seasoned and novice investors. Furthermore, for income-oriented investors, blue-chip companies reward shareholders with regular dividend payouts, further enhancing stability. These blue-chip companies possess a winning combination of established market positions, strong brand recognition, loyal customer bases and extensive market penetration. Such traits provide these companies with a distinct competitive edge and help unlock new opportunities, thus making them investor favorite. By investing in blue-chip stocks, investors can build a well-diversified portfolio. Here, we have identified three stocks from the Retail - Wholesale sector — Walmart Inc. WMT, The Home Depot, Inc. HD and Costco Wholesale Corporation COST. Thanks to successful business operations, these stalwarts have withstood multiple market gyrations and delivered returns to investors. These blue-chip stocks have balance sheet strength to tackle any untoward market volatility. Past-Year Price Performance Image Source: Zacks Investment Research 3 Prominent Picks Walmart: Walmart, the omnichannel retail giant, has been diligently working to further strengthen its already formidable presence in the market. The company has embarked on a series of strategic e-commerce initiatives, encompassing acquisitions, partnerships and significant improvements in its delivery and payment systems. Simultaneously, Walmart is committed to elevating its merchandise offerings, ensuring a diverse and appealing product assortment. Innovation extends to its supply chain, where the company is enhancing capacity and introducing cutting-edge solutions. Walmart has a market cap of $422 billion as of Nov 27, 2023. This Zacks Rank #3 (Hold) stock has a trailing four-quarter earnings surprise of 8.2%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The Zacks Consensus Estimate for Walmart’s current financial-year sales and earnings suggests growth of 5.4% and 2.4%, respectively, from the year-ago reported numbers. The company pays out a quarterly dividend of 57 cents ($2.28 annualized) per share, giving a 1.5% yield at the current stock price. WMT’s payout ratio is 35, with a five-year dividend growth rate of 1.9%. (Check WMT’s dividend history here) Home Depot: Headquartered in Atlanta, GA, this company stands as another distinguished blue-chip stock, dominating the home improvement retail sector. Its consistent expansion in both Professional and Do-It-Yourself segments, fortified by an extensive product lineup and digital innovations, underpins its remarkable success. The company's interconnected retail strategy and robust technological infrastructure have amplified web traffic, leading to growth in digital sales. Home Depot has a market cap of $309.4 billion. This Zacks Rank #3 stock has a trailing four-quarter earnings surprise of 1.8%, on average. The company pays out a quarterly dividend of $2.09 ($8.36 annualized) per share, giving a 2.7% yield at the current stock price. HD’s payout ratio is 54, with a five-year dividend growth rate of 13.8%. Costco: A consumer defensive stock, Costco has been surviving the market turmoil pretty well. Strategic investments, a customer-centric approach, merchandise initiatives and an emphasis on memberships have been the discount retailer’s primary strengths. Costco's distinctive membership business model and pricing power set it apart from traditional players. Through a calculated approach that involves identifying untapped markets and tailoring offerings to meet customer preferences, Costco has managed to deepen its roots. Costco has a market cap of $263.4 billion. This Zacks Rank #3 stock has a trailing four-quarter earnings surprise of 2.1%, on average. The Zacks Consensus Estimate for Costco’s current financial-year sales and EPS suggests growth of 4.2% and 7%, respectively, from the year-ago period. The company pays out a quarterly dividend of $1.02 ($4.08 annualized) per share, giving a 0.7% yield at the current stock price. COST’s payout ratio is 28, with a five-year dividend growth rate of 12.3%. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.0% per year. So be sure to give these hand-picked 7 your immediate attention. See them now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Walmart Inc. (WMT) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report Costco Wholesale Corporation (COST) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-28	WMT	Target's (NYSE: TGT) management thinks it has the answer to the company's stubborn customer traffic problem. After losing shoppers for several consecutive quarters, the chain is pivoting its merchandising toward value in hopes of winning back market share over the holiday shopping season. The move makes sense. Peers Walmart (NYSE: WMT) and Costco (NASDAQ: COST) are seeing stronger growth thanks to their focus on competitive pricing. Yet Target's sales have declined in 2023. Target's stock jumped in the wake of its latest earnings report, though, which contained some good news around profitability. Wall Street is also encouraged by the chain's plan to offer thousands of gifts priced under $25 this season. But do these shifts make the stock a buy? Here's what you need to know . Losing ground Target's mid-November earnings update didn't change the weak growth narrative that investors have seen for the past year. Comparable-store sales dropped 5% through late October, mainly because of a 4% decline in customer traffic. Shoppers are spending more on essentials such as groceries, as demonstrated by Walmart's 5% comps increase. But they aren't frequenting the home furnishings and consumer electronics aisles that make up most of Target's business. The good news is that the chain is in a great inventory position, with inventory levels down 14% overall and lower by 19% in the consumer discretionary niche. Management also said that sales trends met their modest expectations even as profitability landed well ahead of targets. Operating profit jumped to 5% of sales from 1.2% of sales a year ago, putting the retailer within range of its pre-pandemic margin of roughly 6% of sales. Walmart's comparable figure is about 3% of sales, in contrast. The rebound strategy Target is hoping to take a page from the industry leader's playbook by stressing value over the next few quarters. It's stocking its shelves with thousands of gifts priced at $25 and below, moving it more in line with Costco and its price leadership focus. Target isn't abandoning the premium branding strategy that's been so successful over the years, though. The chain is still offering tons of exclusive brands for the holiday season, in fact. Management said the goal was to deliver both "newness and value" through the peak shopping period. Shareholders are hoping the strategy will help end Target's sales slide that's seen comps fall 4% over the first three quarters of 2023. Customer traffic in that period is down 3%, reversing a 3% increase in the prior-year period. Watch the stock Investors should watch the stock rather than jump in to purchase it right now. Customer traffic trends haven't stabilized yet, after all, and management projected another quarter of declines ahead for Q4. Yet there's no denying that the retailing stock is cheap today. Shares are valued at 0.6 times annual sales, compared with Walmart's valuation of 0.7 times revenue. The same trend holds for earnings, with Target available for 17 times profit, compared with Walmart's P/E ratio of 26. Most investors will prefer to follow Target shares until operating trends at least stabilize. But the business will recover, and the chain's low valuation is reducing the risk in owning the stock over the long term. Stay tuned for Target's holiday season update for any major shift in its operating outlook that could signal an end to its sales slide ahead in 2024. 10 stocks we like better than Target When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Target wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 20, 2023 Demitri Kalogeropoulos has positions in Costco Wholesale. The Motley Fool has positions in and recommends Costco Wholesale, Target, and Walmart. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-28	WMT	InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Dow is expected to move higher in 2023 as macroeconomic factors shift. 30 blue-chip firms that are leaders in their respective industries make up the Dow Jones Industrial Average (DJIA) and broadly represent American industry. Thus, they generally perform well in all markets as the American economy is still the largest globally even in difficult times. Dow Jones stocks are particularly interesting as we head into 2024. The markets expect rate cuts to begin sometime in early to mid 2024. Those cuts will galvanize an upswing. Cheaper lending will spur growth across the economy and will propel the Dow higher. That said, certain stocks within the index will perform better. Boeing (BA) Source: vaalaa / Shutterstock.com The worst appears to be behind Boeing (NYSE:BA) which is why it leads off this recommendation of Dow stocks to buy before 2024. The airplane manufacturer suffered a series of fatal crashes in 2019 that grounded its 737 MAX airplanes. The years subsequent to that grounding have been equally difficult. The company has faced delays and setbacks and getting its airplanes it recertified for airworthiness. Those difficulties appear to be drawing to a close which is why Boeing again makes sense for investors. It is likely that Boeing will begin deliveries of its 737 Max 10 jet early next year. The MAX 10 is Boeing’s largest single aisle airplane and is set to be delivered to several major carriers including United Airlines (NASDAQ:UAL), RyanAir, and Air India among others. It’s also likely that other carriers could increase their orders for Boeing’s jets as rate cuts hit. Cheaper lending means cheaper financing making the pursuit of greater revenue generating Investments that much more appealing. Walmart (WMT) Source: Jonathan Weiss / Shutterstock.com Walmart (NYSE:WMT) is, in a lot of ways, very analogous to the U.S. economy overall. The stock and the company’s performance serve as a bellwether for the macroeconomy. With Walmart performing very well currently and things looking brighter in 2024, now is the time to consider investing. U.S. GDP increased by 4.9% in the third quarter. Walmart’s revenues grew by 5.2% during the same period. So, 2024 promises to be a strong year for Walmart because the macroeconomic outlook is brightening. Of course, the primary fuel for that optimism is the expectation of rate cuts at some point in 2024. Walmart intimated as much when it released earnings just a week ago. Management raised guidance for sales and adjusted EPS for the fiscal year. The company continues to telegraph the idea of increasing strength to the stock market as we headed toward 2024. Beyond its current strength, investors should also consider that Walmart continues to make strides to close the gap between itself and Amazon in terms of e-commerce. The firm’s e-commerce sales grew by 15% during the third quarter. Microsoft (MSFT) Source: The Art of Pics / Shutterstock.com Microsoft (NASDAQ:MSFT) continues to put itself in the best position. Here I’m referring to the ongoing saga between the company and OpenAI. Microsoft invested heavily into OpenAI for its generative AI prowess. Early in 2023 that turned out to be a very shrewd investment as the sector took off. It served to place Microsoft ahead of other Silicon Valley firms in terms of AI positioning. In late 2023, OpenAI suffered a coup. The board, led by chief scientist Ilya Sutskever, deposed CEO Sam Altman — leading to an employee revolt. Sutskever has since had to recant and has asked Altman to return to the firm. Meanwhile, Microsoft is going to win no matter the outcome. The company has promised to take on Altman and any of the hundreds of employees that threatened to quit if Altman was not reinstated as OpenAI’s CEO. That would be a big win for Microsoft if it were to happen. The company would suddenly have on boarded one of the leading AI firms rather than simply being a leading investor. Conversely, if Altman is reinstated as chief of OpenAI Microsoft won’t have lost anything. Investors should expect that Microsoft will continue to thrive in 2024. The company has positioned itself extraordinarily well in regards to artificial intelligence. Its Azure cloud investment is doing well, its co-pilot AI product is positioned to continue to improve workplace efficiency, and on and on. Intel (INTC) Source: JHVEPhoto / Shutterstock.com The overarching narrative around Intel (NASDAQ:INTC) and its stock is that it’s an ‘also ran’ at this point. Nvidia (NASDAQ:NVDA) continues to lead and dominate the market for artificial intelligence chips. Intel is among many firms that are attempting to dethrone Nvidia piece by piece. For several months headlines have quietly spoken to the idea that Intel imposes a quiet threat to Nvidia in that regard. Intel’s Gaudi2 chips were pitted in a head-to-head battle against Nvidia’s h100 chips in a series of AI tests. Nvidia’s chips prevailed in each of the tests. However, Intel’s chips did manage to complete the tasks. It’s clear that Intel remains behind Nvidia overall. There’s no debating that fact. However, also consider that Intel is currently best positioned to receive billions in government funding for chip production facilities. The U.S. government continues to worry that China could invade Taiwan and is actively searching to move production on shore. In other words, Intel is positioned to have the strategic advantage of U.S. military might on its side for quite some time into the future. Apple (AAPL) Source: Moab Republic / Shutterstock Apple (NASDAQ:AAPL) can be characterized as a writhing giant. The company continues to deal with multiple factors which conspire to make its stock difficult to pin down. That has resulted in many analysts and pundits growing sour on it overall. This was particularly true when the company released results for its fiscal fourth quarter in recent weeks. While earnings topped estimates for the period, the company also gave guidance for the remaining quarter in the calendar year that disappointed. The company projected that sales would be flat for the December quarter. While the news caused shares to drop immediately it essentially does not matter moving forward. There’s a very simple but compelling argument to be made in favor of Apple in 2024. Consumers, who have shunned purchases of expensive iPhones to some degree in 2023, could have renewed confidence in 2024. The economy is very likely to strengthen and that will lead to rising consumer confidence and iPhone sales. American Express (AXP) Source: First Class Photography / Shutterstock.com Investors simply need to look at the most recent earnings report from American Express (NYSE:AXP) to understand why investing in the stock makes sense. Those numbers tell a great story about how financially healthy the wealthier users of its products continue to be. American Express recorded its sixth consecutive quarter of record revenue. Sales grew 13% to $15.38 billion during the period. American consumers of all income levels continue to rack up credit card charges. Thus, it’s reasonable to consider investing in the other major credit card stocks including Visa (NYSE:V). It’s arguably even more logical to invest in American Express exactly because its users tend to be more fiscally responsible. That said, the company did increase its provisions for credit losses substantially during the period. Even so, eat earnings per share increased by 34% as net income rose by 30%. Investors should expect American Express to continue to thrive in 2024 as the brightening economic outlook will only serve to increase credit card spending. Salesforce (CRM) Source: Sundry Photography / Shutterstock.com Salesforce (NYSE:CRM) is, by far, the largest customer relationship management firm. Thus, the stock is very well positioned to thrive moving into 2024. Enterprise demand for generative AI services and products is going to continue to thrive. Salesforce has invested heavily in partnering and collaborating to improve its generative AI offerings. The company is already extremely well integrated at the enterprise level as a majority of firms use Salesforce as their CRM. Those firms must continue to invest in generative AI, especially in the realm of customer relationship management. The insights that AI promises to provide regarding customers is essentially invaluable. Salesforce is collaborating with Microsoft , Google (NASDAQ:GOOG,GOOGL), and other tech firms to bring solutions to customers. On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing. More From InvestorPlace The #1 AI Investment Might Be This Company You’ve Never Heard Of Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post The 7 Best Positioned Dow Stocks to Purchase Before 2024 appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-27	WMT	U.S. stock finished mostly higher in holiday-shortened trading on Friday as all three major indexes recorded four straight weeks of gains. However, the Nasdaq ended in negative territory for the day. How Did The Benchmarks Perform? The Dow Jones Industrial Average (DJI) rose 0.3% or 117.12 points to finish at 35,390.15 points. The S&P 500 added 0.1% or 2.72 points, to end at 4,559.34 points. Technology and communication services stocks and were the only losers on the index. The Technology Select Sector SPDR (XLK) fell 0.2%, while the Communication Services Select Sector SPDR (XLC) declined 0.3%. Nine of the 11 sectors of the benchmark index ended in positive territory. The tech-heavy Nasdaq slipped 0.1% or 15 points to close at 14,250.85 points. The fear-gauge CBOE Volatility Index (VIX) was down 2.66% to 12.46. A total of 4.97 billion shares were traded on Friday, lower than the last 20-session average of 10.49 billion. Advancers outnumbered decliners on the NYSE by a 2.64-to-1 ratio. On the Nasdaq, a 2.29-to-1 ratio favored advancing issues. Bond Yields Rise on Holiday-Shortened Day Investors returned to Wall Street after Thursday’s Thanksgiving holiday. Trading volume remained low as all three major stock exchanges closed at 1 p.m. EST on Friday. However, bond yields rose once again on Friday although trading was shortened. The 10-year Treasury yield jumped 5.6 basis points to close at 4.467%. This comes after Treasury yields fell drastically earlier this week on hopes that the Federal Reserve may be done with raising interest rates as inflation continues to cool. Retail stocks gained on Friday as Black Friday marked the beginning of the holiday shopping season. Shares of Walmart, Inc. (WMT) and The Kroger Co. (KR) rose 0.9% and 0.8%, respectively. The Kroger Co has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here. November is turning out to be one of the best months of 2023 after stocks made a solid turnaround following a decline in August, September and October. No major economic data was released on Friday. Weekly Roundup All three major indexes finished higher for the fourth straight week. The Dow rose 1.3% for the week. The S&P 500 also finished the week up 1.3% recording its longest winning streak since June. It was also the index’s biggest four-week gain since November 2022. The Nasdaq ended the week 0.9% higher, also recording its longest winning streak since June. Zacks Names #1 Semiconductor Stock It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Walmart Inc. (WMT) : Free Stock Analysis Report The Kroger Co. (KR) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-27	WMT	By Ananya Mariam Rajesh, Deborah Mary Sophia and Siddharth Cavale Nov 28 (Reuters) - Spending online on Cyber Monday is set to exceed $12 billion, a record, as bargain hunters snap up deals on items including Barbie dolls, Lego sets, headphones and smart watches, according to preliminary estimates from Adobe Digital Insights. The estimate projects U.S. shoppers will spend $12 billion-$12.4 billion on Cyber Monday, the biggest U.S. online shopping day. A significant portion of this spending, around $4 billion, is expected to occur between 6 p.m. and 11 p.m. EST, particularly from last-minute shoppers, it said. At the top end, this would represent an 9.7% increase compared to the $11.3 billion spent on Cyber Monday last year. Retailers have been coaxing inflation-weary U.S. shoppers to open their wallets on Cyber Monday with push notifications, text messages and video streaming ads touting heavily discounted cosmetics, electronics, toys, clothing and other products. "Whether the consumer is going to continue at this pace or not, we'll continue to see them spend. I think this is going to be a much better-than-advertised Christmas," said Nancy Tengler, CEO of Laffer Tengler Investments in Scottsdale, Arizona. Shoppers have been hunting for deals since 12 a.m. on Monday with transactions during the first 12 hours of the day exceeding those during the same timeframe in 2022, according to data firm Criteo, which tracks sales from more than 700 brands and retailers in the United States. "Consumers are quite resilient and have found ways to buy presents and experiences for their kids and their pets," said Matthew Katz, Managing Partner at consulting firm SSA & Company. Still, Walmart WMT.N, Target TGT.N and Home Depot <HD.N> are among firms to raise caution on the strength of the consumer, citing higher interest rates and depleting household savings. Charles Sizemore, chief investment officer at Sizemore Capital Management, said he expects retailers to have to discount more in the weeks ahead. This makes him worried about profit margins at a time input and labor costs have not come down and shoppers continue to be picky. "I really think margins are going to be depressed," during the holiday season, said Sizemore, whose firm holds about $2 million of shares each in Walmart and Target. Amazon AMZN.O began marketing Cyber Monday Deals as early as Saturday, including discounts of up to 46% on some Instant Pot kitchen appliances, 37% off certain Vitamix blenders, and 35% on Amazon devices including a 55-inch Amazon Fire TV. Walmart, eager to capture market share, slashed prices on Sunday night, joining the trend of retailers' early discounts on major shopping days. On Monday, Walmart stepped up discounts on some clothing to 60%, up from the 50% it offered on Black Friday. Cyber Monday online sales over the years https://tmsnrt.rs/46NJ19L GRAPHIC-Cyber Monday online sales over the years https://tmsnrt.rs/3uFpRoN US holiday online sales expected to gain pace this year https://tmsnrt.rs/3QQ3DIl Shoppers click 'buy' as retailers slash prices ahead of Cyber Monday Price-sensitive US shoppers nab early 'Cyber Monday' deals 'A lot quieter' Black Friday brings out discount hunters UK Black Friday shopper numbers, transactions down from last year EXPLAINER-What is Black Friday? And will shoppers find bargains this year? More US shoppers tack on buy now, pay later debt for Cyber Monday BREAKINGVIEWS-Amazon’s shipping splurge delivers payoff (Reporting by Siddharth Cavale and Arriana McLymore in New York, and Deborah Sophia, Aishwarya Venogupal and Ananya Mariam Rajesh in Bengaluru Editing by David Gregorio, Nick Zieminski, Matthew Lewis and Lincoln Feast) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-27	WMT	InvestorPlace - Stock Market News, Stock Advice & Trading Tips Artificial intelligence (AI) makes people’s lives easier. And what’s more convenient than online shopping? Naturally, e-commerce stores use this technology to make personalized product recommendations to increase sales. Businesses use chatbots to address frequently asked questions and avoid repetitive tasks for customer support teams. The technology can also auto-generate lines of code and content. The technology continues to advance and integrate within more businesses. Many consumers also enjoy using AI products or appreciate the AI-powered personalized experiences companies provide online. The technology’s prominence has attracted a lot of money and investors. Analysts have been gushing over some of the top-rated AI stocks, so let’s take a look at these three picks. Axcelis Technologies (ACLS) Source: Pavel Kapysh / Shutterstock.com Axcelis Technologies (NASDAQ:ACLS) uses ion implantation technology to assist with the production of semiconductors. You can find these chips in various goods such as computers, cars, video game consoles, appliances, and more. Semiconductors are also the foundation for artificial intelligence. Axcelis Technologies has experienced rising demand for its services due to AI chips becoming more popular. The company is rated as a strong buy and has a $182.25 average price target from five analysts. The highest price target is $215. Axcelis Technologies offers many reasons to justify the current optimism. The stock trades at an 18 P/E ratio and has produced solid earnings over several quarters. The company generated $292.3 million in sales during the third quarter. It’s a 27.6% year-over-year increase. Net income came in at $65.9 million which represents 63.7% year-over-year growth. Axcelis Technologies’ profit margin has exceeded 20% for a few quarters. All factors considered, the company looks undervalued. But like many AI stocks, Axcelis Technologies is more volatile than most assets. ACLS currently has a 1.79 beta. Symbotic (SYM) Source: shutterstock.com/Tex vector Symbotic (NASDAQ:SYM) is a riskier AI stock than Axcelis Technologies, but it can generate higher returns for investors. While ACLS grew by 64% year-to-date, SYM has soared by 347% during the same amount of time. A strong earnings report featuring 61% year-over-year revenue growth and the company’s first quarter of a positive net adjusted profit worked wonders for the stock. Shares rallied by over 40% on the next day. Symbotic uses artificial intelligence to increase warehouse efficiency. Its robots perform manual tasks, and the company’s software helps people keep track of inventory. Walmart (NYSE:WMT) is a large customer and has a 62% stake in Symbotic. The stock has a lofty valuation and doesn’t yet have a P/E or a forward P/E ratio. However, the company seems poised to deliver profitable quarters soon. High-growth companies on the cusp of profitability tend to report substantial profit margin improvements soon after they become profitable. Symbotic can follow that trend and eventually end up with a reasonable valuation. The company’s solid Q1 FY24 guidance suggests the stock’s valuation can improve next year. Microsoft (MSFT) Source: The Art of Pics / Shutterstock.com Microsoft (NASDAQ:MSFT) has invested billions of dollars into artificial intelligence. The company is hoping to offer better office tools and enhance Microsoft Azure through this technology. Artificial intelligence can strengthen Microsoft’s edge while introducing new business opportunities. Microsoft made a big investment in OpenAI that briefly turned into a saga. The OpenAI board fired Sam Altman and then brought him back as the CEO within a week after intense backlash. Recent drama aside, Microsoft has continued to deliver exceptional returns for investors and is one of the leaders in the AI industry. Shares have gained 58% year-to-date and are up by 266% over the past five years. Analysts are quite bullish about Microsoft. The stock is rated as a strong buy and has an average price target of $410.03. The highest price target among 33 analysts is $450. Microsoft has many business segments that go beyond artificial intelligence. The company is well-diversified and is a top position in many mutual funds, index funds, and ETFs. On this date of publication, Marc Guberti held long positions in ACLS and MSFT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines. Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet. More From InvestorPlace Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In. The #1 AI Investment Might Be This Company You’ve Never Heard Of The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post 3 Top-Rated AI Stocks That Analysts Are Loving Now appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-27	WMT	By Ananya Mariam Rajesh and Deborah Mary Sophia Nov 27 (Reuters) - Retailers hit the send button on push notifications, text messages and video streaming ads to reach U.S. shoppers on Cyber Monday, touting heavily-discounted cosmetics, electronics, toys, clothing and other products. Spending online on Cyber Monday is set to reach as much as $12.4 billion, according to Adobe Digital Insights, which tracks data through Adobe's Experience Cloud service for e-commerce platforms. That would represent a record and an increase of more than 5.4% compared to a year ago, Adobe said. As of mid-day, investors pointed to Amazon AMZN.O, Walmart WMT.N and Apple as possible winners for the day. "It's a little early to see how this all plays out," said Jim Worden, chief investment officer of Wealth Consulting Group, which holds shares of Amazon. "There's still good spending" online. "While the prices of TVs and some electronics have come down a lot, I don't know how much the average consumer is going to nibble on these," he said. "One of the biggest things that we would be looking at is if the discounts throughout the day started to deepen," said Brian Mulberry, client portfolio manager at Zacks Investment Management, which owns Amazon and Walmart stock. Overall Black Friday sales in stores and online rose by 2.5% compared to a year ago, according to Mastercard SpendingPulse, which measures all payment types. Online U.S. sales rose by 8.5% while in-store U.S. sales increased just 1.1%, it said. Charles Sizemore, chief investment officer at Sizemore Capital Management, said he expects retailers to have to discount more in the weeks ahead. This makes him worried about profit margins at a time input and labor costs have not come down and shoppers continue to be picky. "I really think margins are going to be depressed," during the holiday season," said Sizemore, whose firm holds about $2 million of shares each in Walmart and Target. Amazon began marketing Cyber Monday Deals as early as Saturday, including up to 46% off some Instant Pot kitchen appliances, 37% off certain Vitamix blenders, and 35% on Amazon devices including a 55-inch Amazon Fire TV. Walmart, eager to capture market share, slashed prices on Sunday night, joining the trend of retailers' early discounts on major shopping days. On Monday, Walmart stepped up discounts on some clothing to 60%, up from the 50% it offered on Black Friday. Apple offered Apple Gift Cards of up to $200 with eligible purchases. Cyber Monday online sales over the years https://tmsnrt.rs/46NJ19L GRAPHIC-Cyber Monday online sales over the years https://tmsnrt.rs/3uFpRoN US holiday online sales expected to gain pace this year https://tmsnrt.rs/3QQ3DIl Shoppers click 'buy' as retailers slash prices ahead of Cyber Monday Price-sensitive US shoppers nab early 'Cyber Monday' deals 'A lot quieter' Black Friday brings out discount hunters UK Black Friday shopper numbers, transactions down from last year EXPLAINER-What is Black Friday? And will shoppers find bargains this year? (Reporting by Siddharth Cavale, Arriana McLymore, Deborah Sophia, Aishwarya Venogupal and Ananya Mariam Rajeash. Editing by David Gregorio and Nick Zieminski) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-27	WMT	By Stephen Culp NEW YORK, Nov 27 (Reuters) - Wall Street was mixed on Monday as investors took a post-Thanksgiving pause ahead of crucial economic data as the holiday shopping season kicked in to high gear with retailers trying to lure bargain hunters with Cyber Monday deals. The tech-heavy Nasdaq was slightly higher, the Dow was edging red and the S&P 500 was essentially unchanged, but leaning lower. Online shopping deals as part of Cyber Monday are expected to entice shoppers to spend a record $12 billion, according to Adobe Analytics, in the latest upbeat sign regarding the health of the American consumer, whose spending is responsible for about 70% of the U.S. GDP. The S&P 500 Retail index .SPXRT was up 0.9%. "Coming off four weeks of very strong and positive market activity we’re seeing investors take a bit of a breather and focus on data," said Greg Bassuk, chief executive officer at AXS Investments in New York. "This week all eyes will be focused on additional inflation data as well as consumer confidence and spending to determine if Main Street has kept up with Wall Street." Resilience of the consumer and the tightness of the labor market amid signs of a dampening economy have many market-observers digesting the possibility that while the Federal Reserve has reached the end of its tightening cycle, it might keep restrictive policy rates in place for longer than expected. Financial markets have cemented a 99.4% likelihood that the central bank will leave its Fed funds target rate unchanged at next month's meeting, with the possibility of a rate cut starting gaining ground in mid-2024, according to CME's FedWatch tool. On the economic front, a larger than expected drop in new home sales added to the subdued sentiment. Later in the week, market participants look to the Commerce Department's second take on third-quarter GDP expected on Wednesday, to be followed on Friday with its broad-ranging Personal Consumption Expenditures (PCE) report. Remarks from Federal Reserve policymakers later in the week will also be parsed for clues regarding the duration of the central bank's restrictive policy. "Investors are looking for confirmation that not only have rates peaked, but more importantly how quickly the Fed might start lowering rates in 2024," Bassuk added. At 2:11 p.m. EST, the Dow Jones Industrial Average .DJI fell 46.79 points, or 0.13%, to 35,343.36, the S&P 500 .SPX lost 2.83 points, or 0.06%, to 4,556.51 and the Nasdaq Composite .IXIC added 24.35 points, or 0.17%, to 14,275.21. Among the 11 major sectors in the S&P 500, real estate .SPLRCR and consumer discretionary .SPLRCD were enjoying the largest percentage gains, while energy shares .SPNY were down the most. Amid the Cyber Monday fervor, Amazon.com AMZN.O gained 1.3% and Walmart WMT.N edged up 0.6%. Affirm Holdings AFRM.Osurged 11.0%, as the payment platform's "buy now, pay later" option was seen hitting an all-time high, boosting the online holiday sales. Online gift platforms Etsy ETSY.O and Shopify SHOP.K were up 3.3% and 5.5%, respectively. Elsewhere, Crown Castle International CCI.N advanced 4.8% as activist investor Elliott Investment Management sought executive and board changes at the wireless tower owner. GE HealthCare GEHC.O sagged by 3.4% following UBS's downgrade of the medical devices company's stock to "sell" from "neutral." Declining issues outnumbered advancing ones on the NYSE by a 1.18-to-1 ratio; on Nasdaq, a 1.35-to-1 ratio favored decliners. The S&P 500 posted 34 new 52-week highs and no new lows; the Nasdaq Composite recorded 78 new highs and 64 new lows. Cyber Monday online sales over the years https://tmsnrt.rs/40WemFD (Reporting by Stephen Culp in New York Additional reporting by Shristi Achar A and Amruta Khandekar in Bengaluru Editing by Shinjini Ganguli and Matthew Lewis) ((stephen.culp@thomsonreuters.com; 646-223-6076;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-27	WMT	By Shristi Achar A and Amruta Khandekar Nov 27 (Reuters) - U.S. stock indexes were mixed on Monday, ahead of a key inflation reading and commentary from Federal Reserve policymakers later in the week, while shares of some retailers edged higher as holiday shopping picked up steam with Cyber Monday deals. Investors are awaiting the release of "Beige Book", the Fed's compendium of reports about the economy, and the personal consumption expenditure index data for October, which would help give clues about the Fed's next rate decision. Monday's mixed movement follows a positive Thanksgiving week for Wall Street, with the major indexes notching up their fourth consecutive week of gains on growing optimism that the Federal Reserve was likely done hiking interest rates. "It's natural to expect that the first day back after a long Thanksgiving session, you'd see perhaps some muted enthusiasm in the marketplace," said Mark Luschini, chief investment strategist at Janney Montgomery Scott. "As the week progresses, we'll get a little bit more directionality out of equity prices. It'd be more favorable because we're in a traditionally strong seasonal area of the calendar." The rebound in equities in November has brought the S&P 500 .SPX close to its highest intra-day level this year. U.S. retailers were on the radar after Black Friday, and as Cyber Monday kicked off with shoppers estimated to spend a record $12 billion to $12.4 billion. Shares of Amazon.com AMZN.O and Walmart WMT.N edged up 1.4% and 0.7%, respectively. Affirm HoldingsAFRM.O jumped 11.8%, as the usage of 'buy now, pay later' was seen hitting an all-time high, boosting the online holiday sales. The S&P 500 retail sector .SPXRT, housing Amazon, rose 0.9%. The focus will also be on a host of Fed officials due to speak at different conferences this week, with Chair Jerome Powell expected to participate in a fireside chat on Friday. Traders have priced in the possibility of a pause in rate hikes in December, and see an about 52% chance of a rate cut of at least 25-basis points in May 2024, according to the CME Group's FedWatch Tool. The CBOE Volatility index .VIX, known as Wall Street's fear gauge, was up 0.29 points at 12.75 after plunging to its lowest since just before the COVID-19 pandemic in 2020 last week. At 11:46 a.m. ET, the Dow Jones Industrial Average .DJI was down 89.48 points, or 0.25%, at 35,300.67, the S&P 500 .SPX was down 5.27 points, or 0.12%, at 4,554.07, and the Nasdaq Composite .IXIC was up 14.00 points, or 0.10%, at 14,264.85. Among other stocks, Crown Castle InternationalCCI.N added 3.8% as activist investor Elliott Investment Management, also a major shareholder, sought executive and board changes at the wireless tower owner. GE HealthCareGEHC.O lost 3.6% after UBS downgraded the medical devices maker to "sell" from "neutral". Declining issues outnumbered advancers for a 1.44-to-1 ratio on the NYSE and for a 1.49-to-1 ratio on the Nasdaq. The S&P index recorded 21 new 52-week highs and no new lows, while the Nasdaq recorded 58 new highs and 43 new lows. Cyber Monday online sales over the years https://tmsnrt.rs/40WemFD (Reporting by Shristi Achar A and Amruta Khandekar in Bengaluru; Editing by Saumyadeb Chakrabarty and Shinjini Ganguli) ((Shristi.AcharA@thomsonreuters.com https://twitter.com/ShristiAchar;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-27	WMT	The overall Q3 earnings picture for the retail sector has been good so far. Total earnings from 80.9% of the sector’s total market capitalization reported so far are up 38.5% on 8.3% higher revenues, with 87% beating EPS estimates and 78.3% beating revenue estimates. This is a notably better performance relative to other recent periods, both in terms of the growth rates as well as the beats ratios. Most of the big-box retailers came up with an earnings or revenue beat or both. The robust results fueled a rally in retail ETFs. VanEck Vectors Retail ETF RTH, Amplify Online Retail ETF IBUY, SPDR S&P Retail ETF XRT and ProShares Online Retail ETF ONLN have gained 7.99%, 13.4%, 7.1% and 8.9%, respectively, over the past month (see: all the Consumer Discretionary ETFs here). Let’s dig into the details of some of the earnings releases. Earnings in Focus Walmart WMT came up with a revenue beat but matched the earnings estimates. Earnings per share came in at $1.53, on par with the Zacks Consensus Estimate, and improving 2% from the year-ago earnings. Revenues rose 5.2% year over year to $160.8 billion and topped the consensus mark of $159.5 billion. The mega-retailer lifted fiscal 2024 guidance. It now expects revenues to rise 5-5.5% compared with the previous projection of 4-4.5% and earnings per share in the range of $6.40-$6.48, up from $6.36-$6.46. Home Depot HD, the world's largest home improvement retailer, reported solid results. Earnings per share of $3.81 surpassed the Zacks Consensus Estimate by 5 cents and revenues exceeded by $187 million. The retailer narrowed its outlook for fiscal 2023. Home Depot now anticipates sales to decline in the range of 3-4% compared with the earlier guidance of a 2-5% year-over-year decline. It estimates earnings per share to decline 9-11% compared with the previous guidance of a 7-13% decrease year over year in fiscal 2023. Meanwhile, the second-largest home improvement retailer, Lowe’s LOW beat estimates for earnings by a penny but lagged on revenues by $503 million. It lowered its revenue and earnings per share guidance for fiscal 2023. Revenues are expected to be $86 billion, down from the range of $87-$89 billion, and earnings per share are expected to be $13.00, down from the previous range of $13.20-$13.60. Big-box retailer Target TGT topped the Zacks Consensus Estimate for earnings by 62 cents and revenues by $156 million. The retailer foresees a mid-single-digit decline in comparable sales in the final quarter of fiscal 2023. It expects adjusted earnings per share between $1.90 and $2.60 compared with $1.89 reported in the year-ago period. Leading departmental store Kohl’s KSS came up with mixed results. Kohl’s posted earnings of 53 cents per share, beating the Zacks Consensus Estimate of 34 cents. Revenues of $4 billion came in slightly below the consensus mark by $49 million. Kohl’s raised the lower end of the top and bottom-line guidance for fiscal 2023. It expects net sales to decline 2.8-4% versus the previous guidance of sales decline of 2-4%. Earnings per share are envisioned in the band of $2.30-$2.70 compared with the $2.10-$2.70 band projected earlier. ETFs in Focus Below, we have highlighted the ETFs in detail: VanEck Vectors Retail ETF (RTH) VanEck Vectors Retail ETF provides exposure to the 25 largest retail firms by tracking the MVIS US Listed Retail 25 Index, which measures the performance of the companies involved in retail distribution, wholesalers, online, direct mail and TV retailers, multi-line retailers, specialty retailers and food and other staples retailers. VanEck Vectors Retail ETF is highly concentrated on the top firm with double-digit exposure, while the other firms hold no more than an 8.5% share (read: Consumer Spending Boosts U.S. Q3 GDP: ETFs to Buy). VanEck Vectors Retail ETF has amassed $172 million in its asset base and charges 35 bps in annual fees. It trades in a lower volume of 5,000 shares a day on average. VanEck Vectors Retail ETF has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Amplify Online Retail ETF (IBUY) Amplify Online Retail ETF offers global exposure to publicly-traded companies with significant revenues from the online retail business, traditional online retail, online travel, online marketplace, and omni channel retail by tracking the EQM Online Retail Index. IBUY holds 72 stocks in its basket, with none accounting for more than 3% of the assets. Amplify Online Retail ETF has the largest allocation, with 39% in online retail and 38% in online marketplace. Amplify Online Retail ETF has attracted $174.5 million in its asset base and charges 65 bps in annual fees. IBUY trades in an average daily volume of 14,000 shares. SPDR S&P Retail ETF (XRT) SPDR S&P Retail ETF tracks the S&P Retail Select Industry Index, which provides exposure across large, mid and small-cap stocks. It holds well-diversified 78 stocks in its basket, with none making up for more than 2.3% share. SPDR S&P Retail ETF is well spread across various industries with a double-digit allocation each in apparel retail, specialty stores, automotive retail, and broadline retail. SPDR S&P Retail ETF is the largest and most popular in the retail space, with AUM of $396.7 million and an average trading volume of 8 million shares. It charges 35 bps in annual fees and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook. ProShares Online Retail ETF (ONLN) ProShares Online Retail ETF offers exposure to companies that principally sell online or through other non-store channels, and then zeroes in on companies reshaping the retail space. It tracks the ProShares Online Retail Index, holding 19 stocks in its basket. ONLN is highly concentrated on the top firm, while the other firms hold no more than 8% of the assets. American firms make up 61% of the portfolio, while Chinese firms account for a 16% share (read: Billionaires Bullish on Big Tech: ETFs in Focus). ProShares Online Retail ETF has accumulated $96.7 million in its asset base and charges 58 bps in annual fees. ONLN trades in an average daily volume of 18,000 shares. Want key ETF info delivered straight to your inbox? Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Target Corporation (TGT) : Free Stock Analysis Report Kohl's Corporation (KSS) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Lowe's Companies, Inc. (LOW) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report SPDR S&P Retail ETF (XRT): ETF Research Reports VanEck Retail ETF (RTH): ETF Research Reports Amplify Online Retail ETF (IBUY): ETF Research Reports ProShares Online Retail ETF (ONLN): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-27	WMT	By Shristi Achar A and Amruta Khandekar Nov 27 (Reuters) - U.S. stock indexes slipped on Monday, ahead of a key inflation reading and commentary from Federal Reserve policymakers later in the week, while shares of some retailers edged higher as holiday shopping picked up steam with Cyber Monday deals. Investors are awaiting the release of "Beige Book", the Fed's compendium of reports about the economy, and the personal consumption expenditure index data for October during the week, which would help give clues about the Fed's next rate decision. Wall Street ended the Thanksgiving week on a positive note, with the major indexes notching up their fourth consecutive week of gains on growing optimism that the Federal Reserve was likely done hiking interest rates. The rebound in equities in November has brought the S&P 500 .SPX close to its highest intra-day level this year. "What we're seeing is just a little bit of hesitancy as the market prepares for a heavy reporting calendar week," said Peter Cardillo, chief market economist at Spartan Capital Securities. "We are headed for a mixed session today...maybe something like profit taking at the beginning and then just a leveling off." U.S. retailers were on the radar after Black Friday and as Cyber Monday kicks off with shoppers looking for steep discounts expected to spend a record $12 billion to $12.4 billion. Shares of Amazon.com AMZN.O and Walmart WMT.N edged up 1.0% and 0.4%, respectively. The S&P 500 retail sector .SPXRT, housing Amazon, rose 0.5%. The focus will also be on a host of Fed officials due to speak at different conferences this week, with Chair Jerome Powell expected to participate in a fireside chat on Friday. Traders have priced in the possibility of a pause in rate hikes in December, and see an about 55% chance of a rate cut of at least 25-basis points in May 2024, according to the CME Group's FedWatch Tool. Weighing on sentiment, latest data showed profits at China's industrial firms grew at a slower pace, indicating the need for more policy support measures to help shore up growth in the world's second-largest economy. The CBOE Volatility index .VIX, known as Wall Street's fear gauge, was up 0.47 points at 12.93 after plunging to its lowest since just before the COVID-19 pandemic in 2020 last week. At 9:44 a.m. ET, the Dow Jones Industrial Average .DJI was down 51.61 points, or 0.15%, at 35,338.54, the S&P 500 .SPX was down 10.56 points, or 0.23%, at 4,548.78, and the Nasdaq Composite .IXIC was down 25.34 points, or 0.18%, at 14,225.51. Among other stocks, Crown Castle InternationalCCI.N added 4.3% as activist investor Elliott Investment Management, also a major shareholder, sought executive and board changes at the wireless tower owner GE HealthCareGEHC.O lost 4.0% after UBS downgraded the medical devices maker to "sell" from "neutral". Declining issues outnumbered advancers for a 2.76-to-1 ratio on the NYSE and for a 2.25-to-1 ratio on the Nasdaq. The S&P index recorded 7 new 52-week highs and no new lows, while the Nasdaq recorded 34 new highs and 18 new lows. Retail sector outperforms broader markets in 2023 https://tmsnrt.rs/47QCsE1 (Reporting by Shristi Achar A and Amruta Khandekar in Bengaluru; Editing by Saumyadeb Chakrabarty and Shinjini Ganguli) ((Shristi.AcharA@thomsonreuters.com https://twitter.com/ShristiAchar;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-27	WMT	The holiday season started with a big bang as a large number of Americans shopped online, taking advantage of big deal days. This is especially true as consumers spent a record $9.8 billion shopping online on Black Friday. This reflects an increase of 7.5% from last year's record-setting mark of $9.12 billion, according to Adobe (read: 4 ETFs to Shop This Black Friday). More than half (54%) of Black Friday online sales were made through smartphones – up from about 48% in 2022 – accounting for $5.3 billion, according to Adobe Analytics. This is the first shopping season in which mobile sales could overtake sales made over desktop computers, the firm estimates. The solid trend is likely to continue, with Cyber Monday expected to top Black Friday online sales with a record-breaking $12 billion, up 6.6% from last year. For the Cyber Week (defined as the five-day period between Thanksgiving and Cyber Monday), Adobe expects $37.2 billion in online spending, representing 16.8% of total holiday season online sales, which are forecast to reach $221.8 billion between Nov 1 and Dec 31 this year. A few e-commerce players are expected to benefit the most from Cyber Monday sales: Hot Retailers Online behemoth Amazon.com AMZN, which accounts for about one-third of online sales on Cyber Monday, remained the hottest retailer. Amazon's Cyber Monday deals, running from Nov 25-27, include discounts on a range of products like Instant Pot kitchen appliances, Vitamix blenders and Amazon devices. Amazon has a Zacks Rank #2 (Buy) and a VGM Score of B. Brick-and-mortar chains have also become aggressive in chasing online customers. WalMart WMT Cyber Monday sales began on Nov 26 and featured a variety of deals. Customers will be able to take advantage of some of the most popular brands like Crocs, Little Tykes, Ninja, Shark and so much more. Shoppers can get up to 80% off during the Cyber Monday Deals. Walmart has a Zacks Rank #3 (Hold) and a VGM Score of B. Target TGT started its Cyber Monday sale on Nov 26. It will run through Nov 27. It has deals on top products, including Samsung TVs, Apple iPads, Dyson vacuums, and clothing, offering up to 60% discounts. TGT has a Zacks Rank #2 and a VGM Score of A. Best Buy BBY kicked off a two-day "Cyber Monday Savings Event" on Nov 26, which will run through Nov 27 with 50% off on laptops, TVs and more. Best Buy has a Value Score of B. Meanwhile, Costco Wholesale (COST) Cyber Monday deals on Nov 27 include significant discounts on jewelry, computers and electronics. The stock has a Zacks Rank #3 and a VGM Score of B. Kohl’s KSS launched its "Cyber Weekend Deals" on Nov 25, which will run through Nov 27 in stores and online. The company is offering "deals on hundreds of top gifts" and a 20% discount with free shipping on online orders of $25 or more. KSS has a Zacks Rank #3 and a VGM Score of B. ETFs on a Roll While investing in any of these stocks could reward investors this Cyber Monday, a diverse approach in a basket form can also be a great choice. For this, investors can splurge on ETFs that are poised to capitalize on the surge in e-commerce and consumer spending. Consumer Discretionary ETFs: A Direct Impact Among the attractive ETF deals, Consumer Discretionary Select Sector SPDR Fund XLY is at the forefront. It is directly linked to consumer spending habits. The fund holds major e-commerce and retail stocks in its portfolio. It has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook (read: 4 Reasons Why Consumer Discretionary Stocks Are a Buy Now). E-Commerce ETFs: Riding the Digital Wave Specifically targeting the e-commerce sector, ETFs like the Amplify Online Retail ETF IBUY and the Global X E-commerce ETF EBIZ are in prime position. These funds invest in companies that derive a significant portion of their revenues from online sales, making Cyber Monday a critical event for their performance. Technology ETFs: The Backbone of Online Retail Technology ETFs also stand to gain from Cyber Monday sales. As online shopping relies heavily on technology infrastructure, companies providing cloud services, cybersecurity, and payment processing solutions are essential. ETFs like the Technology Select Sector SPDR Fund XLK offer exposure to these vital tech players. XLK has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook. Logistics and Supply Chain ETFs: Essential for Deliveries The surge in online orders during Cyber Monday puts a spotlight on logistics and supply chain companies. ETFs focusing on logistics, such as the iShares Transportation Average ETF IYT, which includes courier and delivery services, are likely to benefit from the increased demand for shipping and delivery services. The fund has a Zacks ETF Rank #2 (Buy) with a High risk outlook (read: 5 ETFs to Make the Most of Solid Thanksgiving Travel Trend). Sustainable and Socially Responsible ETFs: A Growing Niche An interesting trend is the rise of socially responsible investing. ETFs that focus on companies with strong environmental, social, and governance (ESG) practices could see an uptick, as more consumers prefer to shop from sustainable brands. Funds like the iShares Global Clean Energy ETF ICLN and the SPDR SSGA Gender Diversity Index ETF SHE cater to this niche market. Both ETFs have a Zacks ETF Rank #3. Want key ETF info delivered straight to your inbox? Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Target Corporation (TGT) : Free Stock Analysis Report Kohl's Corporation (KSS) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Best Buy Co., Inc. (BBY) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports iShares U.S. Transportation ETF (IYT): ETF Research Reports Consumer Discretionary Select Sector SPDR ETF (XLY): ETF Research Reports iShares Global Clean Energy ETF (ICLN): ETF Research Reports Amplify Online Retail ETF (IBUY): ETF Research Reports SPDR MSCI USA Gender Diversity ETF (SHE): ETF Research Reports Global X E-commerce ETF (EBIZ): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-27	WMT	By Shristi Achar A and Amruta Khandekar Nov 27 (Reuters) - U.S. stocks were poised for a subdued open on Monday, ahead of a key inflation reading and commentary from Federal Reserve policymakers later in the week, while retailers were in focus as holiday shopping picked up steam with Cyber Monday deals. Wall Street ended the Thanksgiving week on a positive note, with the major indexes notching up their fourth consecutive week of gains on growing optimism that the Federal Reserve was likely done hiking interest rates. The rebound in equities in November has brought the S&P 500 .SPX within 1% of its highest intra-day level this year. At 8:31 a.m. ET, Dow e-minis 1YMcv1 were down 52 points, or 0.15%, S&P 500 e-minis EScv1 were down 4.25 points, or 0.09%, and Nasdaq 100 e-minis NQcv1 were down 2.25 points, or 0.01%. "What we're seeing is just a little bit of hesitancy as the market prepares for a heavy reporting calendar week," said Peter Cardillo, chief market economist at Spartan Capital Securities. "We are headed for a mixed session today...maybe something like profit taking at the beginning and then just a leveling off." Investors are awaiting the release of "Beige Book", the Fed's compendium of reports about the economy, and the personal consumption expenditure index data for October - the Fed's preferred inflation gauge - during the week, which would help give clues about the Fed's next rate decision. Traders have priced in the possibility of a pause in rate hikes in December, and see an about 55% chance of a rate cut of at least 25-basis points in May 2024, according to the CME Group's FedWatch Tool. The focus will also be on a host of Fed officials due to speak at different conferences this week, with Chair Jerome Powell expected to participate in a fireside chat on Friday. Latest data showed profits at China's industrial firms grew at a slower pace, indicating the need for more policy support measures to help shore up growth in the world's second-largest economy. Meanwhile on Monday, U.S. retailers were on the radar after Black Friday and as Cyber Monday kicks off with shoppers expected to spend a record $12 billion to $12.4 billion. Shares of Amazon.com AMZN.O and Walmart WMT.N edged up 1.1% and 0.4%, respectively, before the bell. Among other stocks, Crown Castle InternationalCCI.N added 5.5% as activist investor Elliott Investment Management, also a major shareholder, sought new executive and board changes at the wireless tower owner GE HealthCareGEHC.O lost 3.0% after UBS downgraded the medical devices maker to "sell" from "neutral." Retail sector outperforms broader markets in 2023 https://tmsnrt.rs/47QCsE1 (Reporting by Shristi Achar A and Amruta Khandekar in Bengaluru; Editing by Saumyadeb Chakrabarty and Shinjini Ganguli) ((Shristi.AcharA@thomsonreuters.com https://twitter.com/ShristiAchar;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-27	WMT	The S&P 500, America's benchmark index of 500 of the largest U.S. companies, is up 18.2%, year to date, as of this writing. Last year, the S&P 500 dropped 18.1%, but in each of the previous three years, it rose by double digits. Is a market correction or crash around the corner to be followed by a recession? The answer is: No one knows, and no one can know. For long-term investors, it's best not to fret too much about market downturns, as they will inevitably happen now and then -- usually not lasting too long. A smart way to prepare for them is to have a ready list of stocks you'd love to own -- at the right price. Here are three such portfolio contenders. See if any or all of them interest you. 1. Home Depot Home Depot (NYSE: HD) bills itself as "the world's largest home improvement retailer." As it sports a market value recently topping $300 billion, above Lowe's $114 billion, that's easy to believe. It recently encompassed more than 2,300 stores across the U.S. and beyond, and it employs more than 450,000 people. It's big, and it's getting bigger. In its third quarter, revenue took a step back, but it's up 17% from 2021 levels. And Q3 results still exceeded expectations. The company has been pressured by high interest rates and inflation holding back many homebuyers, home equity borrowers, and renovation projects. Those headwinds are not permanent, though. Many expect interest rates to not go much higher, and inflation has been plateauing or dropping. Shares are not a bargain, but a market pullback could make them one. Home Depot's forward-looking price-to-earnings (P/E) ratio was recently 20.5, a bit below its five-year average of 21.1 And its dividend recently yielded 2.7%, while having been hiked by an annual average rate of 15% over the past five years. 2. Sherwin-Williams Paint giant Sherwin-Williams (NYSE: SHW) may not be a market darling, but it should be. Consider that over the past 20 years, it has averaged annual gains of 18.1% compared to only 8.5% for the overall S&P 500. (Those numbers are 19.3% and 9.7% with dividends reinvested.) The world's largest paint and coatings company, it was founded right after the Civil War, in 1866, and now employs more than 64,000 people in 120-plus countries. It recently boasted more than 5,000 stores and branches, and 136 manufacturing and distribution facilities, and its brands include Valspar, Minwax, Purdy, Krylon, Thompson's Water Seal, Cabot, and Dutch Boy. Sherwin-Williams rakes in around $23 billion annually. In Q3, the company reported same-store sales up 3% year over year and diluted earnings per share up 12.6%. It, too, has been pressured by high interest rates and inflation affecting the housing market, and it, too, should see its fortunes improve once those issues abate. Meanwhile, it pays a dividend that, while a modest 0.9%, has been a fast grower, rising by an annual average of 16% over the past five years. Its forward P/E ratio was recently 30.9, a bit above its five-year average of 26.1. 3. Walmart Walmart (NYSE: WMT) is one of the biggest companies on earth, with a market value topping $400 billion and a dividend recently yielding 1.5%. (That payout has increased at an average annual rate of only 2% over the past five years, though.) It employs a whopping 2.1 million people and sports more than 10,000 stores in 19 countries. Interestingly, Walmart's net-profit margin, like that of many retailers, is rather low at a recent 2.23%. But that's OK, since it has so much volume: It has posted revenue of $631 billion over the past year. Walmart is still growing, too, in part by expanding in new directions. It has become the largest supermarket chain in the U.S., for example, and is growing its healthcare business, too. Our suboptimal current economic condition is affecting even Walmart, with its CFO John David Rainey noting after Q3 that "We're not immune from the vagaries of the economy. We see our customers showing ongoing discretion in making trade-offs to be able to afford the things they want, given the sustained high cost of the things they need. ... So, sales have been somewhat uneven. ..." The company's forward P/E was recently 25.1, a bit above its five-year average of 23.1. There are many other solid companies out there that could serve your portfolio well over the long run, especially if you buy into them when they seem undervalued. Take some time to build a watch list of portfolio contenders, so you're ready to pounce if there's a market pullback. 10 stocks we like better than Home Depot When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Home Depot wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 20, 2023 Selena Maranjian has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Home Depot and Walmart. The Motley Fool recommends Lowe's Companies and Sherwin-Williams. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-27	WMT	Below is Validea's guru fundamental report for WALMART INC (WMT). Of the 22 guru strategies we follow, WMT rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields. WALMART INC (WMT) is a large-cap growth stock in the Retail (Grocery) industry. The rating using this strategy is 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. MARKET CAP: PASS STANDARD DEVIATION: PASS TWELVE MINUS ONE MOMENTUM: NEUTRAL NET PAYOUT YIELD: NEUTRAL FINAL RANK: FAIL Detailed Analysis of WALMART INC WMT Guru Analysis WMT Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam. Additional Research Links Top Large-Cap Growth Stocks Factor-Based Stock Portfolios Dividend Aristocrats 2023 High Insider Ownership Stocks Top S&P 500 Stocks About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-27	WMT	By Shristi Achar A and Amruta Khandekar Nov 27 (Reuters) - U.S. stock index futures slipped on Monday, ahead of a key inflation reading and commentary from Federal Reserve policymakers later in the week, while retailers were in focus as holiday shopping picked up steam with Cyber Monday deals. Wall Street ended the Thanksgiving week on a positive note, with the major indexes notching up their fourth consecutive week of gains on growing optimism that the Federal Reserve was likely done hiking interest rates. The rebound in equities in November has brought the S&P 500 .SPX within 1% of its highest intra-day level this year. "Usually after Thanksgiving, you tend to get some profit taking because the volumes are low," said Axel Rudolph, senior market analyst at IG Group. "But, until the end of the year we usually have, from a seasonality point of view, quite a bullish bias in equity market." At 7:04 a.m. ET, Dow e-minis 1YMcv1 were down 47 points, or 0.13%, S&P 500 e-minis EScv1 were down 5.75 points, or 0.13%, and Nasdaq 100 e-minis NQcv1 were down 9 points, or 0.06%. Traders have priced in the possibility of a pause in rate hikes in December, and see an about 53% chance of a rate cut of atleast 25-basis points in May 2024, according to the CME Group's FedWatch Tool. A host of Fed officials are due to speak at different conferences this week, with Chair Jerome Powell expected to participate in a fireside chat on Friday. Investors are also awaiting the release of "Beige Book", the Fed's compendium of reports about the economy and the personal consumption expenditure index data for October - the Fed's preferred inflation gauge - during the week. Retailers were also on the radar after Black Friday and as Cyber Monday kicks off with shoppers expected to spend up to a record $12 billion. Shares of Amazon.com AMZN.O and Walmart WMT.N edged up 0.8% and 0.2%, respectively, before the bell. Weighing on sentiment, data showed profits at China's industrial firms grew at a slower pace, indicating the need for more policy support measures to help shore up growth in the world's second-largest economy. Among other stocks, Crown Castle InternationalCCI.N added 4.4% as major shareholder Elliott Investment Management planned to speak with the wireless tower owner about ways to boost its share price, two sources familiar with the matter told Reuters. GE HealthCareGEHC.O lost 3.0% after UBS downgraded the medical devices maker to "sell" from "neutral." (Reporting by Shristi Achar A and Amruta Khandekar in Bengaluru; additional reporting by Shashwat Chauhan; Editing by Saumyadeb Chakrabarty) ((Shristi.AcharA@thomsonreuters.com https://twitter.com/ShristiAchar;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-27	WMT	The Invesco S&P 500 Revenue ETF (RWL) was launched on 02/22/2008, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market. The fund is sponsored by Invesco. It has amassed assets over $2.19 billion, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market. Why Large Cap Value Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts. Value stocks are known for their lower than average price-to-earnings and price-to-book ratios, but investors should also note their lower than average sales and earnings growth rates. When you look at long-term performance, value stocks have outperformed growth stocks in nearly all markets. But in strong bull markets, growth stocks are more likely to be winners. Costs Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same. Annual operating expenses for this ETF are 0.39%, putting it on par with most peer products in the space. It has a 12-month trailing dividend yield of 1.59%. Sector Exposure and Top Holdings It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis. This ETF has heaviest allocation to the Healthcare sector--about 19.30% of the portfolio. Financials and Consumer Staples round out the top three. Looking at individual holdings, Walmart Inc (WMT) accounts for about 3.78% of total assets, followed by Amazon.com Inc (AMZN) and Apple Inc (AAPL). The top 10 holdings account for about 23.35% of total assets under management. Performance and Risk RWL seeks to match the performance of the OFI Revenue Weighted Large Cap Index before fees and expenses. The S&P 500 Revenue-Weighted Index is constructed by using a rules-based methodology that re-weights the constituent securities of the S&P 500 Index according to the revenue earned by the companies in the parent index- subject to a maximum 5% per company weighting. The ETF return is roughly 11.19% so far this year and was up about 6.03% in the last one year (as of 11/27/2023). In the past 52-week period, it has traded between $72.67 and $82.80. The ETF has a beta of 0.99 and standard deviation of 15.70% for the trailing three-year period, making it a medium risk choice in the space. With about 505 holdings, it effectively diversifies company-specific risk. Alternatives Invesco S&P 500 Revenue ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, RWL is a sufficient option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space. The iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $50.62 billion in assets, Vanguard Value ETF has $100.31 billion. IWD has an expense ratio of 0.19% and VTV charges 0.04%. Bottom-Line Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors. To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Want key ETF info delivered straight to your inbox? Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Invesco S&P 500 Revenue ETF (RWL): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-27	WMT	For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Futures down: Dow 0.14%, S&P 0.15%, Nasdaq 0.15% Nov 27 (Reuters) - U.S. stock index futures slipped on Monday, ahead of a key inflation reading and commentary from Federal Reserve policymakers later in the week, while retailers were in focus as holiday shopping picked up steam with Cyber Monday deals. Wall Street ended the Thanksgiving week on a positive note, with the major indexes notching up their fourth consecutive week of gains on growing optimism that the Federal Reserve was likely done hiking interest rates. At 5:39 a.m. ET, Dow e-minis 1YMcv1 were down 48 points, or 0.14%, S&P 500 e-minis EScv1 were down 7 points, or 0.15%, and Nasdaq 100 e-minis NQcv1 were down 23.75 points, or 0.15%. Data showed profit at China's industrial firms grew at a slower pace, indicating the need for more policy support measures to help shore up growth in the world's second-largest economy. In the US, the investors will look out for the "Beige Book", the Fed's compendium of reports about the economy, on Wednesday. The personal consumption expenditure index data for October - the Fed's preferred inflation gauge - is slated to be released on Thursday. While traders have priced in the chances of a pause in rate hikes in December, they see a nearly 50% chance of at least one 25-basis point rate cut in May 2024, according to the CME FedWatch Tool. "Usually after Thanksgiving, you tend to get some profit taking because the volumes are low," said Axel Rudolph, senior market analyst at IG Group. "But, until the end of the year we usually have, from a seasonality point of view, quite a bullish bias in equity market." A rebound in equities in November has brought the S&P 500 .SPX within 1% from its highest intra-day level this year. Retailers were also on the radar after Black Friday and as Cyber Monday kicks off with shoppers expected to purchase up to a record $12 billion. Shares of Amazon.com AMZN.O and Walmart WMT.N edged up 0.3% and 0.1%, respectively, before the bell. Among other stocks, Crown Castle InternationalCCI.N added 3.8% as Elliott Investment Management, a large shareholder in the wireless tower owner planned to push for changes to boost its share price, two sources familiar with the matter told Reuters. GE HealthCareGEHC.O lost 2.7% after UBS downgraded the medical devices maker to "sell" from "neutral. (Reporting by Shristi Achar A and Shashwat Chauhan in Bengaluru; Editing by Saumyadeb Chakrabarty) ((Shristi.AcharA@thomsonreuters.com https://twitter.com/ShristiAchar;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-27	WMT	Nov 27 (Reuters) - As the year's biggest U.S. online shopping day got underway on Monday, discount-seekers used their phones and laptops to snap up electronics, clothing, toys, jewelry, appliances and even personal care products. Heavy online traffic and transactions could add up to a record $12 billion outlay by U.S. shoppers on Cyber Monday, according to Adobe Analytics. That would represent 5.4% more than last year, it said. Retailers were set to dangle average price cuts of 30% on electronics, and 19% on furniture. "We are seeing very strong discounts," said Vivek Pandya, lead analyst at Adobe Digital Insights, which tracks data through Adobe's Experience Cloud service for e-commerce platforms. "You have consumers out there who are very price-sensitive and conscientious, and who want to make sure they get the very best possible deal." Amazon AMZN.O began marketing its Cyber Monday Deals as early as Saturday, including up to 46% off some Instant Pot kitchen appliances, 37% off certain Vitamix blenders, and 35% on Amazon devices including a 55-inch Amazon Fire TV. Walmart WMT.N, eager to capture market share, slashed prices on Sunday night, joining the trend of retailers' early discounts on major shopping days. More than half of purchases online on Monday are likely to be made on mobile devices, according to Adobe, which says it has a window into transaction data at 85% of the top 100 internet retailers. This holiday season, mobile-phone transactions may for the first time overtake purchases made from desktop computers, it said. Last-minute shoppers on Monday could spend $4 billion between 6 p.m. and 11 p.m. ET alone, Pandya said, "because consumers are going to be concerned about discounts weakening after that." Pandya said he would watch whether holiday season shoppers on Monday would continue "downshifting to cheaper goods" in categories, a pattern he noticed earlier this year. "Because people are getting gifts for other people, they seem to stretch a little more, and splurge," he said, and retailers' steep discounts may make it possible for them to avoid "substituting cheaper items." Many "retailers have really pulled back on their inventory levels, to preserve capital and increase margins," said Rob Garf, vice president and general manager for retail at Salesforce, which tracks data flowing through its Commerce Cloud e-commerce service. "The risk consumers take at this point for waiting too long is that a product may not be available when they go to buy it," Garf said. (Reporting by Vanessa O'Connell; Editing by David Gregorio) ((Vanessa.OConnell@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-27	WMT	Black Friday e-commerce spending jumped 7.5% year-over-year to hit a record $9.8 billion in the U.S., according to an Adobe Analytics report. This comes despite the pressure on consumers’ discretionary spending. As shoppers turn to online shopping, Amazon (NASDAQ:AMZN), with its value pricing and fast delivery, is poised to dominate holiday sales and claim a more significant portion of consumers' spending. Let’s delve deeper. Amazon Among Top Shopping Destinations A survey conducted by Goldman Sachs indicated that holiday season sales might surpass initial expectations. Moreover, the survey showed that Amazon and Walmart (NYSE:WMT) continue to be the top shopping destinations for holiday shopping. Amazon’s strategy of providing value to consumers through discounts and promotions is anticipated to boost its Prime membership and overall sales. Additionally, during the Q3 conference call, the company’s management emphasized that its inventory is exceptionally well-positioned for the upcoming holiday season. This enables Amazon to offer customers swift delivery services from their local areas. Amazon’s CFO Brian Olsavsky said during the Q3 conference call that year-to-date, the company achieved its fastest delivery speeds ever in the United States. These enhancements in delivery speeds have played a crucial role in driving growth and have led to an increased frequency of purchases by Amazon Prime members. As Amazon is well-positioned to dominate the holiday season sales, let’s look at what the Street recommends for AMZN stock. What Do Analysts Say About Amazon? Wall Street analysts maintain a bullish view about Amazon’s prospects due to its leadership in the e-commerce and cloud space. Further, Amazon’s focus on reducing its cost structure and driving profitability and investments in AI (Artificial Intelligence) support its bull case. Every analyst covering AMZN stock recommends buying it. While the stock carries a Strong Buy consensus rating, the average price target of $175.51 implies an upside potential of 19.61% from current levels. Disclosure The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-27	WMT	Share prices of Symbotic (NASDAQ: SYM) soared 40% on Nov. 21 after the warehouse automation company posted its latest earnings report. For the fourth quarter of fiscal 2023, which ended on Sept. 30, its revenue rose 60% year over year to $391.9 million and beat analysts' estimates by $85.1 million. Its net loss widened from $5.5 million to $6.2 million, or $0.08 per share, but still cleared the consensus forecast by a nickel. Its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) came in at positive $13.3 million, compared to negative $20.5 million a year ago, and marked its first quarter of adjusted EBITDA profitability. Image source: Getty Images. For the full year, Symbotic's revenue surged 98% to $1.18 billion, its net loss widened from $6.9 million to $23.9 million, and its adjusted EBITDA loss narrowed from $89.8 million to $17.6 million. Those growth rates are incredible, but is it too late to buy Symbotic's stock after its rally of about 400% over the past 12 months? Symbotic is a pure play on warehouse automation Symbotic automates the processing of pallets and cases in large warehouses with fully autonomous robots. It says a $50 million investment in just one of its modules can generate $250 million in lifetime savings over a period of 25 years. Symbotic's largest customer is Walmart (NYSE: WMT), which owns 11% of the company. It holds a master automation agreement (MAA) with Walmart to automate all 42 of the retailer's regional distribution centers across the United States, and that deal -- which accounts for nearly 90% of Symbotic's revenue -- will last until 2034. Symbotic has secured automation deals with other big clients like Target, Albertsons, and the grocery distributor C&S Wholesale to gradually diversify its business away from Walmart. Earlier this year, it also formed a new joint venture (JV) with SoftBank (OTC: SFTB.Y), which owned the special purpose acquisition company (SPAC) it initially merged with. The JV, called GreenBox, is a warehouse-as-a-service company that will exclusively purchase its automation systems from Symbotic through a $7.5 billion contract. Why is Symbotic's stock soaring? The stock is soaring for two reasons. First, the buying frenzy in artificial intelligence (AI) stocks over the past year drove the bulls to Symbotic because it seemed like a great play on AI-driven upgrades for warehouses. Second, revenue growth accelerated over the past two quarters, and the company achieved its goal of turning profitable on an adjusted EBITDA basis by the fourth quarter of fiscal 2023. METRIC Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Revenue growth (YOY) 167% 168% 29% 78% 60% Adjusted EBITDA margin (8.3%) (7.9%) (4.2%) (1.1%) 3.4% Data source: Symbotic. YOY = year over year. During the conference call, CEO Rick Cohen dubbed fiscal 2023 a "year of doubles" -- in which it doubled its total sites in deployment, almost doubled its annual revenue, more than doubled its gross margin, and nearly doubled the total number of stores served by the Symbotic system to more than 3,000 customer stores. For the first quarter of 2024, it expects its revenue to rise by a range of 70% to 79% year over year to $350 million to $370 million. It expects to generate a positive adjusted EBITDA of $11 million to $14 million, which would represent an adjusted EBITDA margin of 3.5% at the midpoint. How much higher can Symbotic's stock soar? For the full year, analysts expect revenue to rise 50% with an adjusted EBITDA margin of 8.3% as it turns profitable on the basis of generally accepted accounting principles (GAAP). In 2025, analysts expect Symbotic's revenue to grow 43%, its adjusted EBITDA margin to rise to 14.9%, and its GAAP net income to jump nearly eightfold. We should take those bullish estimates with a grain of salt, since Symbotic still needs to overcome its customer concentration issues and fend off other competitors, like Amazon and Ocado, in the warehouse automation market, but it's off to a promising start and is firmly backed by Walmart and SoftBank. However, Symbotic's valuations can be a bit confusing. On many financial sites, it has an enterprise value of $3.8 billion -- which might seem cheap at about 2 times its projected sales for fiscal 2024. However, its dual-class structure inflates its actual market capitalization to about $30 billion, or 17 times its fiscal 2024 sales. That high price-to-sales ratio could cap its near-term gains as long as interest rates stay elevated. But if Symbotic can keep meeting analysts' bullish expectations, its market cap might still seem reasonable at 12 times its projected sales for 2025. Is it too late to invest in Symbotic? Symbotic is still a speculative stock, but it has a brighter future than many other SPAC-backed companies that recently went public. If you believe the company can reduce its dependence on Walmart and keep expanding, then it's not too late to pick up some shares of this pure play on the nascent warehouse automation market. 10 stocks we like better than Symbotic When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Symbotic wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 20, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Leo Sun has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Target, and Walmart. The Motley Fool recommends Ocado Group Plc. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-26	WMT	New throughout, adds details on Walmart's Cyber Monday plans Nov 26 (Reuters) - Holiday shoppers in the U.S. are seeking out the best deals and strategically nabbing the deepest discounts ahead of Cyber Monday, according to data from retailer websites aggregated by third parties. Cyber Monday, the first Monday after the Thanksgiving holiday, is set to be the biggest U.S. online shopping day of the year as merchants have stepped up online promotions. Strong online traffic on Black Friday demonstrated a notable pattern of shoppers putting time and effort into selecting the lowest-cost, best-value merchandise, said Rob Garf, vice president and general manager for retail at Salesforce, which tracks data flowing through its Commerce Cloud e-commerce service. Despite an earlier start to retailers' holiday promotions this year, there weren't a lot of great deals initially, Garf said. Yet "consumers were patient, diligent, and they played a game of discount chicken. And they won once again." On Black Friday, the day after Thanksgiving, retailers "stepped up the discounting" to roughly 30% on average in the U.S., he said. And "consumers clicked the buy button," spending $16.4 billion online in the U.S. and $70.9 billion globally that day, according to Salesforce. "We saw a big spike," Garf said, adding that the strong Black Friday online outlay would "pull up" the overall tally for the entire Cyber Week, which started on Tuesday and ends on Monday. On Cyber Monday, Salesforce expects to see discounts averaging 30% again. The risk for consumers, however, is that products may not be available if they wait, he said. "Limited quantities, while supplies last," said a notice on Walmart.com on Sunday afternoon. It offered those who perused its site a "sneak peak" at heavily discounted products, such as $9.88 for Bluetooth wireless headphones made by the onn. brand Walmart WMT.N said it would make its "Cyber Monday Deals" available starting Sunday at 7 p.m. ET. It promised "early access," as of Sunday 4 p.m. ET, to discounted items for shoppers who paid the $98 annual fee to join its Walmart + membership program. Salesforce says it derives its benchmarks for online traffic and spending from data flowing through its Commerce Cloud e-commerce service, which it says provides a window into the behavior of 1.5 billion people in 60 countries traversing thousands of e-commerce sites. Other firms use different measurements to gauge online shopping patterns. Rival Adobe Analytics forecasts that shoppers will spend a record $12 billion Monday, 5.4% more than last year, representing what it says will be the largest-ever e-commerce shopping day in the U.S. Retailers are set to dangle average price cuts of 30% on electronics, and 19% on furniture, said Vivek Pandya, lead analyst at Adobe Digital Insights. Last-minute shoppers on Monday could spend $4 billion between 6 p.m. and 11 p.m. ET alone, Pandya said, "because consumers are going to be concerned about discounts weakening after that." Adobe provides merchants with Experience Cloud, a service which powers their e-commerce platforms, giving Adobe a window into aggregate transaction data at 85% of the top 100 internet retailers. Overall, "consumers are being very strategic, wanting to maximize their shopping when they think they'll get the best discounts," Pandya said. "The online retail sector is one of the few where the consumer is a bit more in the driver's seat," he said, particularly with toys and seasonal holiday merchandise. "There are a lot of online merchants vying for their dollar and they can easily compare prices." Mastercard, which measures retail sales across all forms of payment, said e-commerce sales rose 8.5% on Black Friday, while in-store sales rose 1%. "Digital grew dramatically during the pandemic and then it had a reversion to the mean, when people went back to stores," said Steve Sadove, senior adviser for Mastercard and former CEO of Saks Inc. "Now you are seeing an acceleration in digital, once again. It’s becoming more important." (Reporting by Vanessa O'Connell; Editing by Leslie Adler) ((Vanessa.OConnell@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-25	WMT	Below is Validea's guru fundamental report for WALMART INC (WMT). Of the 22 guru strategies we follow, WMT rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields. WALMART INC (WMT) is a large-cap growth stock in the Retail (Grocery) industry. The rating using this strategy is 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. MARKET CAP: PASS STANDARD DEVIATION: PASS TWELVE MINUS ONE MOMENTUM: NEUTRAL NET PAYOUT YIELD: NEUTRAL FINAL RANK: FAIL Detailed Analysis of WALMART INC WMT Guru Analysis WMT Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam. Additional Research Links Top NASDAQ 100 Stocks Factor-Based ETF Portfolios Harry Browne Permanent Portfolio Ray Dalio All Weather Portfolio High Shareholder Yield Stocks About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-25	WMT	Fifty years ago, the first Apple computer hadn't even gone on sale, Walt Disney's Florida resort had been open for just a couple of years, and the oil embargo was wreaking havoc on the U.S. economy. Since at least that long ago, Stanley Black & Decker (NYSE: SWK), American States Water (NYSE: AWR), and Walmart (NYSE: WMT) have paid and raised their dividends every single year. That's a track record that earns all three companies a place on the coveted list of Dividend Kings. Aside from their history of dividend raises, all three companies have what it takes to keep growing earnings and cash flows, and can therefore support dividend raises for decades to come. Here's why these Motley Fool contributors think all three stocks are worth buying now. Image source: Getty Images. Stanley Black & Decker is on the road to recovery Lee Samaha (Stanley Black & Decker): Having raised its dividend annually for the last 56 years and currently offering a 3.5% yield, the toolmaker is worth a close look for its income alone. The pandemic created plenty of opportunities for the toolmaker as lockdown measures caused DIY-related sales to soar. But it might have caused management to forestall a long-overdue restructuring of its supply chain and operations. The need to restructure became apparent after the lockdowns eased, and the global economy was left trying to rebuild supply chains as cost inflation soared. At the same time, there was a natural correction in DIY-related demand as the economy opened up. In addition, rising rates have pressured interest-rate-sensitive sectors like housing and consumer discretionary spending. This left Stanley with bloated inventory, declining sales, and collapsing earnings. The company has been restructuring since the fall of 2022, with the first priority being inventory reduction. Management plans to cut costs by $2 billion between 2023 and 2025 by reducing complexity in its supply chain (partly by reducing its product range), reducing its number of suppliers, consolidating facilities, and adopting lean manufacturing procedures. The good news is the plan is currently on track. If you buy the stock, just remember that its sales continue to decline, and its inventory-to-sales ratio remains relatively high. Furthermore, management clearly understands the need to invest in cordless power tools and win back market share. That might prove not so easy with formidable competitors like Techtronic (with its Milwaukee and Ryobi brands). The turnaround will take time, but at the least, Stanley Black & Decker is a stock worth monitoring closely. Put this regal water utility to work and swim in a stream of passive income Scott Levine (American States Water): There's no denying the allure of high-yield dividend stocks. Receiving sizable distributions for doing nothing? Most of us are ready to sign right up. But there's also something to be said for tried-and-true dividend stocks like American States Water, a water utility stock that wears the crown of Dividend King since it has been hiking its payout consistently higher for almost 70 years. Exceeding the 1.6% yield of the S&P 500, American States' stock currently yields about 2.1%. Although the company provides water and wastewater services for 11 U.S. military bases through one of its subsidiaries, the lion's share of its business comes from its regulated operations: Golden State Water Company and Bear Valley Electric Company. Combined, these two subsidiaries accounted for 77.4% and 80.1% of consolidated revenue and earnings per share, respectively, in 2022. These steady businesses provide management with good insight into future cash flows, helping the company to plan accordingly for capital expenditures, including infrastructure upgrades and dividends. Demonstrating its commitment to rewarding investors, American States Water has hiked its dividend at a compound annual growth rate (CAGR) of 9.2% over the past decade. In the coming years, management expects the dividend to flow higher, targeting a 7% CAGR for the foreseeable future. Those looking to fortify their portfolios with a conservative dividend stock will certainly want to consider dipping their toes in an American States Water investment. Not your typical Dividend King Daniel Foelber (Walmart): Walmart has raised its payout every year since first declaring a dividend in March 1974. But the home-improvement chain isn't like other Dividend Kings. The stock only yields 1.5%. And although Walmart does stock buybacks, they aren't very consistent and can vary dramatically in size. It also continuously invests in growth through higher capital expenditures, which again isn't something you see all the time from a stodgy Dividend King. At least not on the scale or pace of Walmart's increased spending. WMT stock buybacks (TTM); data by YCharts. TTM = trailing 12 months. The above chart might look reckless on the surface. But Walmart dominates its industry, and its investments have a proven track record of paying off. Many Dividend Kings have limited growth opportunities, and therefore choose instead to use excess capital to simply buy back stock. Walmart's strategy is simple yet effective. Its operating margin usually hovers between 3% and 4%, meaning it is making just $0.03 or $0.04 in operating income for every dollar in sales. The company relies on its massive scale and sales volume for profits. Every successful new store opening or expansion adds to its might. Its highly efficient supply chain and pricing power allow it to undercut the competition, which is a powerful tool in an inflationary environment where consumers are actively looking for the best deal. Walmart is one of the few companies where it makes sense to aggressively invest in growth even during a downturn. That position isn't likely to change anytime soon. Investors willing to take a lower dividend yield might want to take a closer look at Walmart stock. 10 stocks we like better than Stanley Black & Decker When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Stanley Black & Decker wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 20, 2023 Daniel Foelber has the following options: long January 2026 $100 calls on Walt Disney, long June 2025 $105 calls on Walt Disney, and short June 2025 $110 calls on Walt Disney. Lee Samaha has no position in any of the stocks mentioned. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Techtronic Industries, Walmart, and Walt Disney. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-24	WMT	By Katherine Masters NEW YORK, Nov 24 (Reuters) - Retailers are hoping forecasts for a cool, dry Black Friday across much of the U.S. will drive millions of shoppers to their stores in the kickoff to the key holiday shopping season. But with many shoppers facing financial pressure, U.S. holiday spending is expected to rise at the slowest pace in five years. Most major retailers slashed their seasonal hiring. “Consumers are still being very cautious, so if holiday sales do go up, we think it will be due to inflation raising prices,” said Jessica Ramirez, a senior research analyst at Jane Hali & Associates. U.S. shoppers plan to spend an average $875 on holiday purchases -- $42 more than last year -- with clothing, gift cards and toys at the top of most shopping lists, according to a survey of 8,424 adults conducted in early November by the National Retail Federation, a U.S. retail trade group. A record 130.7 million people are expected to shop in-store and online in the U.S. on Black Friday this year, it estimates. Executives say the rise of online shopping has made Black Friday less important as a single-day event. Retailers from Macy's to Amazon now launch deals as early as October and often offer additional discounts closer to Christmas, Macy's CEO Jeff Gennette told investors this month. Most U.S. stores were closed on Thanksgiving but will open to shoppers at 5 a.m. or 6 a.m. on Friday. A coalition of activist organizations, including antiwar group "Act Now to Stop War and End Racism," has called for "disruptions and rallies" at major commercial centers on Black Friday to demand a ceasefire and end of aid to Israel. The New York Police Department said on Wednesday that "there are currently no credible threats to any individual event or to New York City in general" over the holiday weekend. In post-earnings calls this week, retailers from Kohl'sKSS.N to Nordstrom JWN.N told investors they had invested in jackets, cashmere sweaters and Ugg boots to lure Christmas shoppers after an unseasonably warm October. Macy’s M.N also touted Black Friday deals on seasonal attire, including 60% to 65% off men’s and women’s coats, according to its website. To be sure, some retailers hold their biggest markdowns for the Thanksgiving holiday weekend, and big-box players including Walmart WMT.N, Lowe’s LOW.N and Home Depot HD.N maintained or deepened their advertised discounts. Whether those deals will convince inflation-weary consumers to open their wallets is the biggest worry for retailers on Friday. Several categories of merchandise that were top sellers on Black Friday in previous years have been hit hardest by the recent downturn in discretionary spending, said Mari Shor, a senior equity analyst at Columbia Threadneedle Investments. Best Buy BBY.N, for instance, is offering between $100 and $1,600 off electronics including laptops, flat-screen TVs and KitchenAid mixers after telling investors this week that shoppers are still holding off on big-ticket purchases. A downturn in luxury spending has also prompted department stores, including Bergdorf Goodman and Nordstrom to offer steep discounts on items such as Balenciaga shoes and Oscar de la Renta earrings. “Designer remains pressured, primarily in shoes and handbags, and we continue to right-size our inventory to meet that demand,” Nordstrom President Pete Nordstrom told investors on Tuesday. EXPLAINER-What is Black Friday? And will shoppers find bargains this year? FOCUS-US retailers stuck with excess stock offer bargains as holiday season nears US retailers brace for a tough holiday season despite discounts Walmart sounds a note of caution on consumers ahead of holidays, shares fall Target shares surge on margin improvement, inventory drawdown US holiday sales set for slowest year since 2018 as consumers turn frugal - report ANALYSIS-Dwindling excess savings could scupper markets' soft-landing hopes ANALYSIS-Santa's sleigh to be lighter as people buy fewer toys Walmart staffed up for holidays; US retailers cautious about economy US holiday sales growth to slow as inflation pinches wallets - report Toymakers Hasbro, Mattel slump after sounding alarm over holiday spending US economy cools as retail sales dip, monthly producer prices decline Walmart bets on parcel stations for quick deliveries to propel holiday sales Best Buy flags weakening consumer demand heading into holiday shopping season Amazon, Walmart court early holiday shoppers in US with limited-time deals U.S. online sales to grow 4.8% in crucial holiday season -report FACTBOX-US companies unveil hiring plans ahead of holiday shopping season GRAPHIC-Over 16% of retail sales in the US are returned https://tmsnrt.rs/3R5Jy2a GRAPHIC-US holiday sales expected to gain pace this year https://tmsnrt.rs/46hMz3I US holiday sales expected to gain pace this year https://tmsnrt.rs/3FZFTwf Over 16% of retail sales in the US are returned https://tmsnrt.rs/3R22e2G (Reporting by Katherine Masters; Editing by Josie Kao) ((Katherine.Masters@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-24	WMT	By Bansari Mayur Kamdar and Suzanne McGee Nov 24 (Reuters) - Exchange-traded funds (ETFs) tracking U.S. retailers moved higher in shortened trading hours on Black Friday, outpacing broader market indexes. While the S&P 500 index .SPX ended little changed, the Amplify Online Retail ETF IBUY.N climbed 0.4% and the broader SPDR S&P Retail ETF XRT.N gained about 0.7%. Both continued to rise in after-hours trading. Retailers and analysts have warned of a lackluster outlook for this year's holiday shopping season. While the National Retail Federation, an organization representing large retailers, expects overall U.S. holiday to hit a new record of about $967 billion in 2023, that 3% to 4% gain from 2022 would still be smallest since 2019. Retailers like GapGPS.N, Walmart WMT.N and Best BuyBBY.N have voiced caution about the outlook for the holidays and beyond. "I believe that some forecasts have been distorted by the recently ended United Auto Workers and Hollywood SAG-AFTRA actor strikes, which caused a pullback in spending amongst various large pockets across the country," said Michael Ashley Schulman, chief investment officer at Running Point Capital. The SPDR S&P Retail ETF, which has net assets of $396.6 million, recorded weekly outflows of $115.6 in the week ended on Wednesday, according to data from Lipper. That was the largest drop in a month. Still, the bulk of 2023 returns for investors in U.S. retail ETFs have come in recent weeks. The SPDR fund is up 4.98% since Sept. 30, but only 5.69% throughout 2023. The VanEck Retail ETF RTH.O has generated half of its 12.8% year-to-date gains in the last two months. ETF investors "have been alarmed by retailers warning of cautionary, weak, or uneven consumer demand," Schulman added. But Thomas Hayes, chair at Great Hill Capital LLC in New York, anticipates better-than-expected gains in retail stocks this holiday season. "Expectations are very low, which sets the stage for a positive upside surprise," he said. (Reporting by Suzanne McGee; Editing by Lananh Nguyen and Josie Kao) ((Suzanne.McGee@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-24	WMT	(RTTNews) - Walmart will start offering thousands of Cyber Monday deals from top brands on Sunday evening itself, ahead of the biggest online shopping event of the year. The retail major is planning to wrap up a month of incredible savings with the Cyber Monday event on November 27. The retail behemoth's new blockbuster deals will be available on Walmart.com and the Walmart app starting Sunday, November 26 at 7 p.m. EST. For the first time, Walmart+ members will get early access to shop the hottest deals first, starting at 4 p.m. EST. The Cyber Monday deals will be available with amazing online savings of up to 80% across apparel, beauty, home, tech, toys, and more. There will be an extensive selection of both new and popular brands, as well as Walmart exclusives under various categories including electronics, dining ware, home essentials, and toys, among others. The company has more than doubled its Walmart Marketplace assortment this year, offering customers a wider variety of items and brands. Cyber Monday deals, only on Walmart.com, include Crocs Baya Lined Clog at $29.98, with $30.01 savings, onn. 7" Kids Tablet at $39.00, with savings of $40; and GAP Pet Bed at $32.97, with $67.36 savings. Further, the Shark AI Robot Vac will be available at $298 with a savings of $301, and the Beautiful 20pc Ceramic Non-Stick Cookware Set will be available at $119 with $80 savings. There will be $393.01 savings for Michael Kors Jet Set Travel Medium Double Pocket Tote at $104.99, and $110 savings for FitRx 2-in-1 SmartBell Gym at $139.99. Walmart, which reimagined its site experience earlier this year, now offers new and enhanced features such as 'Hearting' functionality and Holiday Wish List & Toy Registry. New this year, members and customers can save their favorite deals by 'hearting' items to automatically create a personalized list called 'My Saved Deals' on Walmart.com or the Walmart app. They are notified as their saved deals become available that can be added to their cart with one simple click to check out in seconds or share with family and friends for gifting. Further, Walmart's new Holiday Wish List and Toy Registry make it effortless for customers to create personalized online registries to save and share their wish lists from one convenient place, Walmart.com. "Walmart is not just delivering the best Cyber Monday deals and shopping experience - our ultra-convenient and fast pickup and delivery options mean customers get their purchases quickly and easily, benefitting from our next-generation supply chain that brings more of this season's top food, toys and gifts; more convenient delivery options; and more availability on next- and two-day shipping," the firm said. The retailer earlier this month had come out with two 'Black Friday Deals' events, which started on November 8 and November 22, offering major savings and early access shopping for Walmart+ members. Event 2 which started online on Wednesday, November 22 at 3 p.m. ET would continue in stores till Friday, November 24. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-24	WMT	Global retail giant Walmart’s (WMT) vast market presence and smart growth strategies have been the cornerstone of its success story so far. A challenging macro environment this year couldn’t dent its business, as witnessed by its recent robust Q3 Fiscal 2024 results. Shares are up 10% YTD, compared to the S&P 500’s (SPX) gain of 20%. Its consistent dividend hikes over the last 50 years signify its ability to keep its business stable, making me bullish on WMT now. A Good Quarter amid Challenging Conditions What started as a single discount store has expanded into a vast network of hypermarkets, supermarkets, and membership-only warehouse clubs. Walmart now operates roughly 10,500 stores and clubs in 19 countries worldwide. Its size is Walmart’s competitive advantage, which is putting many small stores out of business. Furthermore, its “Everyday Low Price” strategy has been successful in attracting customers, particularly during a period of rising inflation. In the third quarter of Fiscal 2024, total revenue grew 5.2% to $161 billion, driven by strong demand across all its segments. Walmart’s U.S. comparable store sales jumped 4.9%, while e-commerce sales rose by 24% in the quarter. Its Mexican and Central American division (Walmex), along with China, drove its International sales up 11% to $28 billion. Adjusted earnings per share (EPS) also increased by 2% to $1.53. Both revenue and earnings exceeded consensus estimates. CEO Doug McMillon commented on the third-quarter results, saying, "We had strong revenue growth across segments for the quarter, and we're excited to get an early start to the holiday season." Walmart ended the quarter with cash and cash equivalents of $12.2 billion and total debt of $55.4 billion. While the debt appears enormous, Walmart's interest coverage ratio as of October 2023 is 9.09. It is calculated by dividing a company's operating income by its interest expense. This ratio indicates how convenient it is for the company to pay interest on its outstanding debt. A high ratio, such as WMT's, indicates sturdy financial health. Added Perk: A Dividend King The added perk of picking Walmart as an investment is that it is a dividend stock -- and not just any dividend stock. By increasing dividends for more than 50 consecutive years now, the retail giant has now graduated from a Dividend Aristocrat to a Dividend King. It offers a dividend yield of 1.46%. However, this is lower than the consumer sector average of 2.1%. While the dividend yield isn’t that attractive, consistency in dividend payments matters more when choosing dividend stocks. Additionally, it has a dividend payout ratio of 34.6%, meaning investors can expect sustainable dividends, going forward. This ratio determines how much of its net earnings are paid out as dividends. Although Walmart is not a fast-growing tech stock, it is the world's largest retailer, boasting massive customer loyalty. Despite the challenging economic conditions, Walmart has consistently generated earnings and free cash flow (FCF), allowing it to boost shareholder returns in the form of dividends. For the nine months ended October 31, it generated FCF of $4.3 billion, a $0.7 billion increase over the same period a year ago. Positive FCF should permit settling debts, paying dividends, and funding future expansions. The Road Ahead for the Retail Giant Walmart has also expanded its supply chain capabilities by collaborating with Symbotic (NASDAQ:SYM), an AI-powered robotic and software platform. In 2022, both companies agreed to install Symbotic systems in all 42 of Walmart's distribution centers across the U.S. The entire automation process in 42 centers could take more than eight years to complete. However, it will help Walmart simplify its supply chain process, reduce costs, and boost margins in the near term. Moreover, according to CNBC, Walmart is not only a partner but also an investor, with an 11% stake in Symbotic. Driven by a strong third quarter and the holiday season in full swing, Walmart increased its Fiscal 2024 full-year guidance. It now expects sales to increase by 5% to 5.5% year-over-year. That would bring full-year revenue in the range of $636 billion to $639 billion. Furthermore, Flipkart's Big Billion Days in India, which happened to fall in Q4 of Fiscal 2024, could aid in further growth in international sales. For the Fiscal Year, EPS is expected to come in between $6.40 and $6.48. Meanwhile, analysts' forecasts for Fiscal 2024 are slightly higher than management's, with expected EPS of $6.49 on revenue of $642 billion. Talking about the near-term future, management stated, “Over the next several years, we expect margins to move higher, as we modernize our supply chain and scale higher-margin growth initiatives.” Is WMT Stock a Buy, According to Analysts? After its Q3 earnings, Roth MKM analyst Bill Kirk maintained his Buy rating on the stock, with a price target of $179. The analysts believe Walmart will continue increasing its market share and profitability. He added, “Near-term volatility aside, we believe Walmart is on the precipice of a major inflection.” Additionally, HSBC analyst Daniela Bretthauer also reiterated her Buy rating on the stock, with a price target of $200. The analyst is impressed with Walmart’s efforts to renovate its stores and grow e-commerce sales and is positive about the updated Fiscal 2024 guidance. Over the past three months, 25 out of 30 analysts covering WMT stock rate it a Buy, while five rate it a Hold. There are no Sell recommendations for this consumer stock. The average Walmart stock price target is $180.79, implying upside potential of 15.9% over the next 12 months. The Bottom Line on Walmart Stock Walmart's journey from a small-town retailer to a global powerhouse has left an unforgettable imprint on the retail industry. Its investments in online platforms and digital infrastructure reflect its commitment to staying relevant in an ever-evolving market. Earning the Dividend King title in the highly competitive consumer sector represents Walmart's ability to maintain stable earnings amid economic volatility. It also depicts its commitment to return money to shareholders. This business strength has most likely contributed to its stock gaining about 137% in the last 10 years. Therefore, I believe that no matter the competition, it will be difficult to shake up Walmart’s dominance. The company is likely to keep expanding its revenue and profits, thus retaining its Dividend King title. Disclosure The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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