109.39 +0.23 (0.21%)
After hours: 7:07PM EDT
|Bid||109.21 x 1400|
|Ask||109.37 x 1300|
|Day's Range||108.26 - 109.55|
|52 Week Range||82.37 - 109.59|
|Beta (3Y Monthly)||0.62|
|PE Ratio (TTM)||38.19|
|Earnings Date||Aug 15, 2019|
|Forward Dividend & Yield||2.12 (2.09%)|
|1y Target Est||110.54|
Businesses from across the country are making their way to Washington to ask the Trump administration not to put tariffs on products they import from China. Yahoo Finance's Jessica Smith joins Seana Smith.
Walmart and Target are among 600 companies that sent President Trump a letter this week asking him to end the U.S-China trade war. They worry higher prices on Chinese goods will hurt profits, but as Janet Shamlian reports, others say tariffs are actually good for business.
The past year has been exciting, if not a little stomach-churning. A raucous 25% rally to start the year unwound a miserable last few months of 2018, but that big advance has been chopped by one-third just since the beginning of May.Thus, when picking the best stocks to buy for the rest of 2019, you have to approach your selections with volatility - namely, avoiding it - in mind.Maybe the year's second act will be a little less exciting and a little more consistent for investors than the first. But with Chinese trade relations in limbo, Brexit still in the air and uncertainty about the Federal Reserve's future plans for interest rates, calm is far from a guarantee.To that end, here are the best stocks to buy for the rest of 2019. Not only are these stock picks a little less vulnerable to the volatility we've seen of late, but they each have solid backstories and/or fundamentals that should prove attractive if the hazy backdrop remains. SEE ALSO: The Berkshire Hathaway Portfolio: All 48 Buffett Stocks
Morgan Stanley’s Simeon Gutman raised Walmart's target price from $113 to $115, while keeping an Overweight rating on the stock. The company has a unique advantage because of its global footprint, which gives it perspective on how retailing is evolving in many places, while many competitors have only local information, Gutman wrote. Walmart is able to take what it learns about fulfillment, data usage, and e-commerce product curation, for example, in various locations and expanding those insights worldwide. 2.
In its recent earnings, Amazon (NASDAQ:AMZN) reported a substantial slowdown in the growth of Others segment, which is primarily made of advertising revenue. At 36%, the growth rate in this segment is only a few percentage points higher than Facebook's (NASDAQ:FB) growth of 26% in the latest quarter. This has led to concerns that Amazon is close to hitting the saturation in terms of ad load and pricing. Strong growth in advertising segment gave a bullish momentum to Amazon stock in the last few quarters. Hence, a slowdown in this segment can hurt the long term sentiment.Source: Shutterstock InvestorPlace - Stock Market News, Stock Advice & Trading TipsHowever, there are a number of levers which Amazon can use to deliver better advertising growth in the near term. For starters, Amazon is experimenting with video search features. It is also developing better tools to improve ad conversions. Amazon has a long growth runway to improve its advertising business and increase the market share in digital advertising. The advertising segment continues to be an important factor for Amazon stock and investors should closely watch the future growth trend in this business. A Slowdown or a Transition for Amazon?The quick growth in Amazon's advertising business had taken the market by surprise. Now, it has increased expectations, which led to a mismatch between revenue growth and current capabilities. Amazon's advertising growth in the last few quarters was over 100% but that was due to an accounting change. If we remove this factor, the Q4 2018 growth was 38%. The growth rate in the advertising segment was between 51% and 73% in the previous quarters.Source: Amazon filingsFacebook was also at this revenue rate in 2014. Since then, it has reported an average revenue growth rate of close to 45%. And like Facebook, Amazon has a number of options to improve its revenue from advertising. Long-term investors should see better sentiment in Amazon stock as the company improves its advertising tool. * 7 Top-Rated Biotech Stocks to Invest In Today Amazon is currently trying to make those improvements with video search ads, which is a direct shot at Alphabet's (NASDAQ:GOOG, NASDAQ:GOOGL) Google. The less-controversial nature of Amazon's platform is also attracting more brands. Last year, Piper Jaffray's Michael Olson had forecasted that Amazon's advertising income will surpass AWS profits by 2021. Next Big Growth Driver for Amazon StockOne of the big opportunities with Amazon is to shift marketing spend from in-store branding. Morgan Stanley has estimated that a whopping $178 billion is spent on in-store brand promotions and coupons. While Google can only offer brand marketing to bigger consumer-packaged-goods (CPG) companies, Amazon can offer performance marketing. This means that Amazon's platform helps in driving sales for these companies. On the other hand, Google can only put the ads in front of customers -- it's far less of a guarantee of converting them into sales.This is a gradual process in which more ad dollars will shift to Amazon's platform. Walmart (NYSE:WMT) is trying to improve its own advertising business. Recently, the company moved its entire ad sales for its stores and website in-house. While Walmart has a larger sales base, Amazon is ahead in terms of its tools and third-party sales. This is a big advertising segment and Amazon is sure to grab more ad dollars from in-store promotions industry. What About the Competition?Amazon's rapid growth has alarmed Google and Facebook. Both these giants are now looking to expand their own retail presence. Facebook has launched new features which allow customers to directly make a purchase from within Instagram. Google has recently launched new shopping features at Google Marketing Live event. Users will be able to make purchases from within YouTube by the end of this year. Google will also have a personalized Google Shopping page where users can compare and filter by price and brands.According to eMarketer, Amazon is in third position behind the duopoly of Google and Facebook in terms of digital ads. And it's coming for them.Source: eMarketerIn the recent quarter, Amazon's growth was ahead of both Facebook and Google. As new features and advertising tools are launched by Amazon, we should see an upward trajectory for growth in advertising revenue. Amazon's advertising segment is currently close to $10 billion on a trailing-12-month basis. At the current growth rate, this number should hit $20 billion by the end of 2020. Better margins in advertising will help in driving the overall margins higher. We have already seen this in the past few quarters. Amazon reported an operating margin of 7.4% compared to 3.8% in the year-ago quarter. Investor TakeawayThe concerns over a slowdown of the advertising segment in Amazon are overblown. Even at the current growth rate, Amazon should be able to show a revenue trajectory similar to that shown by Facebook in the last five years. There is a high probability that we will see an uptick in advertising growth from Amazon as new tools and features are launched.The long-term growth projections for Amazon's advertising segment are very bright. This will help in lifting the operating margin of the entire company and help in the improvement of EPS. And we should continue to see bullish momentum in Amazon stock in the near future as the advertising segment increases its revenue share. As of this writing, Rohit Chhatwal did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * The 7 Best Tech Stocks to Buy for the Second Half of 2019 * 7 Top-Rated Biotech Stocks to Invest In Today * 4 Semiconductor Stocks to Sell Compare Brokers The post Amazon's Advertising Business Is in a Transition appeared first on InvestorPlace.
Fifteen entrepreneurs pitched judges at the Fillmore Detroit for a share of $1.2 million in funding at the Friday event, which marks the beginning of Detroit Startup Week. Ellis Island Tea, a homegrown hibiscus tea business founded by Nailah Ellis-Brown, took home the grand prize investment of $300,000.
In a frothy market you can get a mighty high multiple if you're in the right niche. Like marijuana. That's the story of New Age Beverages (NASDAQ:NBEV). NBEV stock tripled last September after announcing a drink containing CBD. Its drinks even have a picture of the late Bob Marley on them.But pot isn't NBEV's real business. Canned beverages are its business. Things like coffee, tea and kombucha. Sodas with strange combinations like watermelon and coconut, the kind of stuff you'll try at a soda ranch on Route 66.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSince that September explosion, where it briefly traded at almost $9, NBEV stock has lost its fizz, settling into a trading range of between $4-6 per share. But its market cap, $350 million, remains impressive for a drinks company with March quarter sales of $58 million, and no profit.But still. Pot! What NBEV Is Up ToNew Age Beverages has used its moment in the pot limelight to bulk up the product line. The highlight was this month's purchase of Brands Within Reach, for $6.4 million, only $500,000 of it cash. * 7 Top-Rated Biotech Stocks to Invest In Today Brands Within Reach has brand licensing and distribution rights for some mainstream beverages, like cold Nestea and Illy coffee. The idea is that this gets New Age in the door at mainstream retailers like Walmart (NYSE:WMT) and Costco Wholesale (NASDAQ:COST), which then might look at its more esoteric brands.This came just six months after buying Morinda Holdings, another small company but with distribution in 60 countries. The idea there was to expand the market for its CBD products.The Morinda combination is already in the numbers due to be reported August 8, where sales of $70.8 million are expected. Following on the first quarter take of $58 million, that's good growth and, if the pattern persists through the year, it could lead to sales equaling the stock's current market cap by this time next year.That's important, because New Beverage CEO Brent Willis knows he's in the drinks business, not the pot business. He promised to focus on execution after buying Morinda, but the chance to buy into serious beverages with just stock was too good to pass up. What Next for NBEV Stock?Some analysts got very bullish on New Age after the Morinda buy, predicting imminent profits and a steady rise to $9 per share, which would be double its current level.InvestorPlace's Josh Enomoto disagrees. He sees the Brands Within Reach acquisition as a turn away from CBD, the source of its frothy valuation. He also sees the current brands as nothing special.Personally, I like the Brands Within Reach deal. NBEV now has both brands that can get it into the door of big retailers and global distribution for its CBD products. But drinks remain a risky business, a land of giants in which NBEV is a mouse. If Coca-Cola (NYSE:KO), Pepsico (NYSE:PEP) or even Keurig Dr Pepper (NYSE:KDP) decided there was something to this CBD thing, they could blow NBEV out of the water quickly. The Bottom Line on NBEV StockI think the owners of Brands Within Reach know all this, so there's an overhang of almost $6 million in stock, itching to be sold right now.Much of the rest of the common stock is held by speculators looking for a quick payout. Institutions hold just over 13% of the common, against almost 26% held by insiders. I think they will bail, too, at the first sign of bad news. * 7 Top-Rated Biotech Stocks to Invest In Today In other words, NBEV stock has a sell-by date, and execution alone won't stave it off.Dana Blankenhorn is a financial and technology journalist. He is the author of the mystery thriller, The Reluctant Detective Finds Her Family, available at the Amazon Kindle store. Write him at firstname.lastname@example.org or follow him on Twitter at @danablankenhorn. As of this writing he owned no shares in companies mentioned in this article. Compare Brokers The post NBEV Stock Is More Than Just CBD -- But It's Still Not Enough appeared first on InvestorPlace.
It's no secret that Amazon (NASDAQ:AMZN) shook up the retail sector, especially the brick-and-mortar boxes. That created a global trend to shift most shopping transactions online. This is not a fad and it is still in its infancy stage so it won't reverse anytime soon. All retail companies are either already present online or scrambling to get there, so the acceleration is exponential. There are a few winners but most are struggling, Most brick-and-mortar stores continue to suffer even after a decade of the AMZN shock. Some have perished along the way, and many outcomes are still in limbo.Source: Mike Mozart via Flickr (Modified)But there are clear winners like Target (NYSE:TGT), Costco (NASDAQ:COST) and Walmart (NYSE:WMT) who are still thriving. Today's write-up is to share an upside opportunity that could take Target stock to $120 per share.Year-to-date, Target stock is up 32%, which is at least 17% better than WMT and AMZN and almost double that of Costco. The SPDR S&P Retail ETF (NYSEARCA:XRT) is merely up 2% for the same period. Macy's (NYSE:M) and Kohl's (NYSE:KSS) are down 25% in 2019.InvestorPlace - Stock Market News, Stock Advice & Trading TipsClearly, Wall Street is in favor of Target's prospects. However, the next few upticks won't be easy as it is headed into resistance.Last year ended badly for stocks. The disaster started in October and TGT stock, like the rest of them, fell off a cliff on Oct. 2, but it fought hard a month before finishing the 33% correction from September top to December bottom. But since then, TGT rebounded hard and rallied 45% to recover the entire correction. * 7 Top-Rated Biotech Stocks to Invest In Today When a stock recovers from a massive accident and reaches the ledge from which it fell, usually it encounters selling. Investors who got stuck long TGT close to $90 will want out. Besides pivot zones, this usually creates congestion in price action, which translates into resistance. So, TGT will need time and a few pushes to breach through the October accident scene.The TGT rally was not sector-wide as only the stars have bounced well. The XRT, M, KSS and JC Penny (NYSE:JCP) did not recover. So clearly investor sentiment still favors owning TGT, WMT or COST in retail.This is not a coincidence since they have all used thin margins as a power pitch for a long time, even before Amazon. So this made it a fair fight among the four. WMT and COST compete the hardest in that area, but Target lies somewhere in the in the middle.Even though its stock is up more than the other three winners it is still the cheapest of them as well. TGT has a price-to-earnings ratio of 16, which is half that of WMT and COST and five times cheaper than Amazon.So why is Target the stock to buy? It's doing things right and it's still cheap. It's just a matter of picking the right entry point.Since it's coming into resistance, those who are looking to own Target shares for the long term can start with a partial position now thereby leaving room to build it up in the next few weeks.More active traders can chase the break out above the highs. TGT stock will attract buyers above $89.20 but then more at $90.50. It is important to note that it could already be in a breakout targeting $97 per share. Crossing the all-time high could raise the target to $120 per share. The bulls have been setting higher lows attacking necklines. They already crossed the one near $83 and the all-time high is the next. How to Approach Target Stock NowFundamentally, Target management found a few niches in technology and fashion and they have avoided many of the typical retail pitfalls. They've always been a bargain play but with style and they continue to build upon those tools. They've even skirted a few headlines in the past few years, so this team is competent enough to get the job done.I can say the same for Walmart and COST, but they are both too expensive right now from my taste. Wall Street is giving them too much love so they are vulnerable to negative headlines. Conversely, TGT has less froth to shed on bad news. Yes, it's more expensive than say Macy's, but for good reason -- cheaper is not always better.Critics say that Wall Street is too flippant in the face of many concerns. But this time, unlike like last year, the Federal Reserve are no longer raising rates, in fact consensus is that they are going to cut rates maybe as early as this week. So they will prop up stocks if they need to, even though we have full employment and a strong retail environment. * The 10 Best Index Funds to Buy and Hold This is pretty close to Utopia, where good and bad economic news are good for stocks. This is why the bears are unable to maintain selling pressure on the indices too long, unlike they did last fall. The buy-the-dip-gang is in full control … for now.Case in point, sellers tried to break the Target stock rally in April but they failed. Buyers successfully defended it and finished the rally job.In summary, there are few winners in the retail sector and among them TGT stock is most interesting now. But since we are still in the middle of a whirlwind of geopolitical headlines, it's best to start with a partial position thereby leaving room to add some more ever time. After all the equity markets are near all-time highs so they are vulnerable to corrections.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. Join his live chat room free here. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * The 7 Best Tech Stocks to Buy for the Second Half of 2019 * 7 Top-Rated Biotech Stocks to Invest In Today * 4 Semiconductor Stocks to Sell Compare Brokers The post Target Stock Is Still One of the Best Retail Plays appeared first on InvestorPlace.
Online retail has changed the way consumers shop. These discount retailers have reinvented themselves to thrive in the digital era.
India has retaliated against the Section 232 tariffs that President Donald Trump imposed last year. India announced retaliatory tariffs last year but postponed them multiple times, apparently to resolve the trade issues through discussion.
Various sales-boosting initiatives, coupled with aggressive cost-cutting measures, position Darden (DRI) for impressive earnings in fourth-quarter fiscal 2019.
Walmart is on track to file more drone patents than Amazon for the second year in a row, as the pair battle for supremacy in the rapidly changing world of retail. The Arkansas-based chain has filed 97 new drone patents with the World Intellectual Property Organisation since July 2018, according to research by accounting firm BDO. In the same period, Amazon registered 54 product ideas.
The voices are growing louder that the US economy is starting to sputter. From Morgan Stanley, stock strategist Michael Wilson said last month, “Recent data points suggest US earnings and economic risk is greater than most investors may think,” and the May jobs report, released on June 7, backed him up. The numbers were grim, with only 75,000 new jobs reported for the month, and the previous two months revised down by an equal amount. Other data has shown a slowdown in the services sector, and a nine-year low in manufacturing activity.The data is starting to point towards trouble, but the real problem with protecting your portfolio in a downturn lies in the lagging definition of a recession: two consecutive quarters of negative economic growth. Given that growth data is typically reported one month after the fact, this means that investors will always be 4 to 7 months late in taking protective measures. So, let’s be proactive about this, and take a look at TipRanks’ database to find some reliable stocks for defensive investing. These are not necessarily “classic” defensive stocks; rather, these companies have shown by recent performance that they can deliver profits even in a downturn. Apple, Inc. (AAPL)First on our list today is Apple, partly because these days it seems you just can’t build a portfolio without a tech giant but mostly because Apple has proven both its long-term reliability and its short-term resiliency. For the long term, Apple is up 130% in the last five years, while in the short haul the company recovered well from the Q4 2018 downturn and has already made up more than half the losses from last month’s market swoon.More importantly, Apple has also shown that it can adapt and change. Steve Jobs’ unique vision underlay his company’s growth in the early 2000s, and his death in 2011 prompted fears that his successor, Tim Cook, would not fill his shoes and the company would stagnate. It is fair to say that events of the past three quarters have laid that fear to rest. While Cook is not Jobs, he hasn’t needed to be – he took over a mature company with established niches and a growing customer base. He has shown himself fully capable of meeting the challenges the market has posed.Cook met last year’s market dip head-on. He admitted that Apple’s core iPhone sales were not going to fully recover, and orchestrated a plan to meet the changing conditions by shifting the sales focus to Services, reconciling iPhone to a longer replacement cycle, and promoting the iPad, iMac, and Macbook lines. Under all of this, helping to ensure success, is the near-billion strong loyal customer base that the company has built over the past decade.So, Apple has the solid foundation that every defensive stock needs. Looking forward, the company made a favorable impression on market analysts earlier this month at the Worldwide Developers Conference. Kathryn Huberty (Track Record & Ratings) of Morgan Stanley said after Apple’s presentation, “After (Monday’s) announcements, we believe Apple Watch and Mac will more meaningfully contribute to App Store growth, while further solidifying Apple as the most attractive platform for app developers.” Noting the company’s commitment to increasing its Services sector, she added, “Apple's top growth opportunity is driving increased user engagement with apps.” Huberty gives Apple a buy rating with a $231 price target, seeing an upside of 19%.Piper Jaffray’s Michael Olson (Track Record & Ratings) also gives Apple high ratings. Peering into the future of iPhone, he notes that 20% of current owners are interested in upgrading to 5G, and says, “Interest in 5G will only grow from here, so this is a favorable early sign that 5G is viewed as a key feature… we believe that as long as services revenue continues to perform well, it will tide many investors over until anticipation for 5G iPhones intensifies.” His price target on AAPL, $230, also suggests an 19% upside.The analyst consensus on AAPL shares is a ‘Moderate Buy,’ based on 19 buy ratings, 16 holds, 2 sells given over the last three months. Shares are trading at $192, so the $212 average price target indicates an upside of 10%.View AAPL Price Target & Analyst Ratings Detail Johnson & Johnson (JNJ)This one is a traditional defensive stock, and it has a reputation for being a bit staid, but don’t let that fool you: Johnson & Johnson offers real value, consistently delivering on both dividend and long-term equity growth. Both are markers of a strong defensive play.The company’s current dividend yield is 2.72%, which may seem small, but at current share prices it equates to an annual payout of $3.80. Better than the actual dividend payment, however, is JNJ’s dividend history. The company has been paying, and steadily increasing, its dividend since the early 1970s. This policy of consistently rewarding shareholders provides a steady source of income for investors, and also encourages them to reinvest that income in the company. It’s a win-win policy.As a long-term investment, JNJ has, like Apple, proven its worth. The stock has gained 56% in the last 5 years, and shows a 9% gain over the past 12 months. And also like Apple, JNJ has proven resilient in the face of adversity: last December, the stock took a hard hit from bad press related to the widely reported talcum powder recall, but has since regained most of that loss. In another example of corporate resiliency, JNJ was recently given a buy rating with a $157 price target by five-star analyst Joanne Wuensch (Track Record & Ratings) of BMO Capital, after she reviewed the status of current legal action the company faced in the state of Oklahoma in regard to the opioid abuse epidemic. Wuensch notes that the case will likely be resolved quickly, and points out, “Litigation is a common occurrence in the health care sector that takes significant time to resolve, and often headlines are worse than reality.” Her price target indicates confidence in the stock, and a 12% upside.Johnson & Johnson’s success rests on two separate bases. The first, and most widely recognized, is the company’s array of popular consumer brands. JNJ is the producer of Band-Aids, Listerine, and Tylenol, to name just a few. Consumer products provide a respectable 16.7% of annual revenue (nearly $14 billion), but the real money for JNJ lies in pharmaceuticals. To put it in perspective, two drugs – Remicade and Simponi – account for 11.3% of the company’s total revenues, two-thirds as much as all of the consumer products.Unlike many large-scale drug producers, Johnson & Johnson is not deeply exposed to payment issues with the Medicare and Medicaid systems. This is important for investors, as both programs have reputations for underpaying, and with an election year coming up both programs are likely to become political footballs as candidates promise ever more benefits. This is a key point noted by Terence Flynn (Track Record & Ratings). Writing for Goldman Sachs, Flynn says, “The company has the lowest exposure to Medicare/Medicaid within the group. As a result, the stock will be less impacted by potential drug pricing headlines/policy proposals ahead of the 2020 presidential election.” Flynn sets a price target of $163 for JNJ, suggesting an upside of 16%.JNJ’s consensus rating of ‘Moderate Buy’ is derived from 7 buy and 5 hold reviews. The stock’s $149 average price target and $140 share price equate to an upside potential of 7%.View JNJ Price Target & Analyst Ratings Detail McDonald’s Corporation (MCD)Fast food burgers might not come immediately to mind when you hear the phrase ‘Return on Investment,’ but McDonald’s has been delivering more than just quick eats. The company has gained an impressive 16% so far this year, rising from $176 on January 2 to a closing price of $205 on June 14. Even more impressive, between May 3 and June 3, while the S&P 500 was slipping 6.8%, MCD shares were gaining 1.2%.It’s all part of a steady-growth story going back to May of 2015, when current CEO Steve Easterbrook took over. McD’s had just posted its first sales decline in more than a decade, and the new chief’s mandate was simple: refresh a stale brand. His ‘Turnaround Plan’ got the company back to basics, emphasizing fresher, higher quality ingredients; a streamlined menu; and physical rebuilding efforts in the company’s aging franchise locations. Through it all, McDonald’s has maintained its high dividend; the payout is now $4.64 annually, for a yield of 2.26%.The market’s analysts agree that MCD is on a stable upward path. Writing at BTIG, Peter Saleh (Track Record & Ratings) says, “The company's menu strategy shift has boosted comps. Expect the increased menu focus on bundles and full price items – and away from deep discounts - to drive higher U.S. average check for the next couple of quarters.” Saleh boosted his price target to $220 on MCD, suggesting an upside of 7%.Saleh’s not alone. Weighing in from Merrill Lynch last week, Gregory Francfort (Track Record & Ratings) sees “2Q-4Q same-store sales (including 3.9%-4.2% for the U.S.) looking conservative with more upside potential than downside risk.” Like Saleh, he gives MCD a $220 price target.Overall, MCD has a ‘Moderate Buy’ consensus based on 19 analyst ratings given in the last three months, including 14 buys and 5 holds. The stock sells for $205 as of June 14, and the average price target of $216 indicates an upside potential of 5.5%.View MCD Price Target & Analyst Ratings Detail Lowe’s Companies, Inc. (LOW)If the US economy does turn down to recession, Lowe’s is in an excellent position to take advantage of the changed conditions. The do-it-yourself home improvement supplier operates on the big-box model, using bulk to offer discounts on the products and services that, in bad times, homeowners are more likely to handle as DIY.This puts Lowe’s strength as a defensive play is in its niche – the stores offer products that most people need, at discounts that grow more attractive in a downturn. Home maintenance won’t stop for a recession, and DIY really is a good way to save money. In addition, Lowe’s has maintained its lucrative contractor business.And now we get to the weakness in this stock. Lowe’s is the second largest home improvement superstore, after Home Depot (HD), and the company is having trouble boosting revenues and earnings against its larger competition. LOW shares have been on a roller coaster ride for the last 18 months, although they are up nearly 8% year-to-date. On an operational level, Lowe’s has had difficulty executing online sales strategy and home delivery, and managing inventory control. Both are putting serious drag on the bottom line, and holding down revenue growth.Pushing back is CEO Marvin Ellison, who took over in July of last year. He has marked both online sales and inventory control as key parts of a turnaround effort to improve the company’s sales and revenue growth. Early assessments of Ellison’s success are guardedly optimistic; LOW did beat sales and revenue expectations in its most recent quarterly report, although EPS missed by 8%. As Keith Hughes (Track Record & Ratings), of SunTrust Robinson points out, “The recovery will not be a "quick story", even though we are positive on the re-set of expectations and maintain that the 10% projected earnings growth this year still tops Home Depot's (HD) expected flat growth.” Hughes sets a $120 price target on LOW, suggesting an upside of 20%.UBS analyst Michael Lasser (Track Record & Ratings) also sets a buy rating on LOW, with an upbeat $115 target and 15% upside. He writes, “The risk-reward ration on the stock is attractive.”On consensus, Lowe’s keeps a ‘Strong Buy’ rating, based on the 14 buys and 4 holds given in the past three months. While the company faces headwinds, it holds a strong position in a valuable niche, and is widely perceived as facing its difficulties effectively. Of the stocks in this article, LOW offers the best upside potential, at 16%, based on the $99 share price and $115 average price target.View LOW Price Target & Analyst Ratings Detail Walmart, Inc. (WMT)Like Lowe’s, Walmart gains its defensive-stock status from its business model. The king of brick-and-mortar retailers offers discount customers the ultimate in one-stop shopping, putting everything that consumers could want or need under one roof, from baby diapers to daily groceries to minor car repairs. Really, there’s nothing you can’t get at Walmart and that fact has made it the world’s largest company by revenue and the world’s largest private employer.Walmart’s biggest competition comes from Amazon.com (AMZN), but it is more of a whale and elephant story than a cage match. Each company is dominant in its own domain, and each has faced challenges trying to expand on the other’s territory. Walmart may have found a way to leverage its existing stores for an online advantage – rather than offer home delivery (an area in which Amazon already excels), Walmart offers online purchasers an option to pick up their merchandise at the nearest Walmart location. This is a viable alternative, since according to some estimates everyone in the US lives within 10 miles of a Walmart store.As a defensive play, Walmart’s greatest advantage is the pedestrian nature of its business. Everyone needs the products they offer, and in hard times, Walmart’s famously low prices will simply look more attractive. Writing after WMT reported FY20 Q1 earnings, Raymond James’ Budd Bugatch (Track Record & Ratings) said, “Investors should be most encouraged by the U.S. segment, which showed a 5.5 percent year-over-year increase in operating income to $4.1 billion. The business saw strength from a favorable sales mix while e-commerce margins came in better than management's own expectations.” While he believes the company is on firm footing, his price target, at $110, suggests only a modest 1% upside.Guggenheim’s Robert Drbul (Track Record & Ratings) sums up Walmart’s case quite well in his recent research note: “We believe the business remains quite healthy, with solid physical/digital results in recent quarters… We continue to believe WMT’s resources uniquely position it to successfully evolve in an ever-changing retail environment. While trade concerns/tariffs may create quarter-to-quarter fluctuations, we believe the management team will astutely navigate any changes.” Drbul maintained a $115, which indicates a 5.5% upside from current levels.On average, WMT shares have a price target of $113, which gives an upside of 4.5% from the share price of $109. The analyst consensus of ‘Moderate Buy’ is based on 8 buys, 2 holds, and 1 sell set in the last three months.View WMT Price Target & Analyst Ratings DetailYou can learn more about these stocks using TipRanks Stock Comparison tool. This is a powerful new tool that shows all the data on multiple stocks. See for yourself how the Comparison Tool works, by using it to look at the stocks in this article.Disclosure: This author holds a long position in Apple, Inc.
Walmart (WMT) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
Walmart Inc NYSE:WMTView full report here! Summary * Perception of the company's creditworthiness is positive * Bearish sentiment is low * Economic output in this company's sector is contracting Bearish sentimentShort interest | PositiveShort interest is extremely low for WMT with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting WMT. Money flowETF/Index ownership | NeutralETF activity is neutral. ETFs that hold WMT had net inflows of $8.94 billion over the last one-month. While these are not among the highest inflows of the last year, the rate of inflow is increasing. Economic sentimentPMI by IHS Markit | NegativeAccording to the latest IHS Markit Purchasing Managersâ€™ Index (PMI) data, output in the Consumer Servicesis falling. The rate of decline is significant relative to the trend shown over the past year, and is accelerating. Credit worthinessCredit default swap | PositiveThe current level displays a positive indicator. WMT credit default swap spreads are near the lowest level of the last three years and indicate the market's continued positive perception of the company's credit worthiness.Please send all inquiries related to the report to email@example.com.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Citigroup analyst Gregory Badishkanian isn’t ready to declare a victory in the grocery war, but he does have Buy ratings on Kroger, Walmart, and Amazon, and is Neutral on Costco.
Walmart is taking aim at Instacart, Target's Shipt, and Amazon PrimeNow/Whole Foods with a new grocery delivery subscription service calledsimply, "Delivery Unlimited