112.09 0.00 (0.00%)
After hours: 5:10PM EDT
|Bid||111.63 x 800|
|Ask||112.09 x 1800|
|Day's Range||111.57 - 113.20|
|52 Week Range||85.78 - 115.49|
|Beta (3Y Monthly)||0.66|
|PE Ratio (TTM)||39.22|
|Earnings Date||Aug 15, 2019|
|Forward Dividend & Yield||2.12 (1.88%)|
|1y Target Est||111.31|
Data firm Placer.ai found that Whole Foods saw a big spike in foot traffic from Prime Day, as did Amazon competitors Walmart, Target, and Best Buy.
Moody's Investors Service ("Moody's") revised Bed Bath & Beyond Inc.'s outlook to negative from stable and affirmed the company's Baa3 senior unsecured ratings. "The outlook revision reflects uncertainty surrounding management's operating and financial priorities in light of the recent proxy fight and weaker than expected first quarter comparable store sales (-6.6%)", stated Moody's analyst Peggy Holloway. "Given first quarter trends, Bed Bath will be challenged to stem margin erosion again this year", added Holloway.
Home Depot (NYSE:HD) has grown tremendously over the last 11 years, with few interruptions. Since 2014, Home Depot's profits and HD stock price have increased faster than the profits and stock of HD's archrival, Lowe's (NYSE:LOW).Source: Shutterstock However, Lowe's profits have recently begun to increase faster than those of Home Depot. Meanwhile, the valuation of Home Depot stock remains higher than the valuation of Lowe's shares. Falling interest rates could boost the prospects of both HD stock and Lowe's stock. While I do not think current investors should sell HD stock, Lowe's appears better-positioned for the near-term. * 10 Stocks to Buy From This Superstar Fund Home Depot, Lowe's Battle for GrowthMuch as analysts frequently compare Walmart (NYSE:WMT) to Target (NYSE:TGT), it's difficult to discuss Home Depot stock without comparing it to Lowe's stock.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHD stock still appears to be outperforming Lowe's stock. The current Home Depot stock price stands at around $212 per share. That represents an increase of almost 35% from the lows of last December. During the same period, LOW stock has climbed by about 24%.However, Lowe's profits appear to be increasing faster than Home Depot's at this point. This year, analysts, on average, expect HD's earnings to rise 2.3%, compared to a 9.2% increase for Lowe's. Both companies' profit growth should accelerate next year. Still, over the two-year period, Lowe's profits are expected to rise 18.3% versus an 8.8% gain for Home Depot.Moreover, based on the stocks' forward price-earnings (PE) ratio, Home Depot stock appears slightly more expensive. Currently, HD trades at about 19.4 times analysts' average forward earnings estimate, while Lowe's forward PE ratio comes in at around 15.6. Dividends, Interest Rates Keep HD Stock a HoldStill, the dividends of Home Depot stock continue to be more attractive than those of Lowe's. The annual payout of HD stock has reached $5.44 per share, taking its yield to around 2.55%, ahead of Lowe's current 2.15% return. The dividend of HD stock has also risen for six straight years, making its dividend quite stable and dependable.HD stock's dividend may now be the best reason to own Home Depot stock as the company settles into slow-growth mode. HD operates 2,290 stores across the U.S., Canada, and Mexico. While that constitutes a massive footprint, it is only six more stores than last year and 50 more than in 2008.In terms of home-improvement stores, the North American market has become saturated. Lowe's failed in its attempt to expand into Australia earlier in the decade. As a result, both HD and Lowe's seem reluctant to consider opening new stores outside of North America.Nonetheless, the market cap of HD stock has risen from just over $24 billion in October 2008 to over $234 billion today. Given this increase, I would encourage the long-term owners of HD stock to hold onto their shares. The company has managed to increase its profits and dividends without opening too many stores. Although HD's profit growth is decelerating this year, analysts think its profits will continue to rise.Moreover, interest rates have fallen substantially in recent months. That could help reignite the housing market, which has plateaued this year. It may also encourage more consumers to remodel their homes. Lower borrowing costs could also provide the needed incentive for the current owners of Home Depot stock to stay the course. The Bottom Line on Home Depot StockConsidering the valuation of HD stock and its gains since 2008, investors have little reason to either buy or sell this equity. Over the past 11 years, HD stock has risen by almost ten-fold on negligible store growth. This speaks to the strength of this company.However, archrival Lowe's profits are now growing more quickly. Moreover, on a forward basis, LOW stock trades at a discount to HD stock. In an environment of falling interest rates, I expect Home Depot stock to hold its own. However, in the near term, I do not expect Home Depot stock to outperform Lowe's stock.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy From This Superstar Fund * 7 Stocks to Buy This Summer Earnings Season * 7 Marijuana Penny Stocks to Consider for Those Who Can Handle Risk The post Why Home Depot Stock Isn't Worth Buying appeared first on InvestorPlace.
Let's be honest. When investors talk about retail stocks, Walmart Inc. (NYSE:WMT) isn't usually thought of as a "sexy" name. The fact that WMT is the largest U.S. retailer by sales and the largest non-government employer in the country doesn't seem to excite most investors much.Source: Shutterstock "Sexy" in the retail space is usually reserved for growth companies residing in the consumer discretionary space, such as Amazon (NASDAQ:AMZN), Shopify (NYSE:SHOP) and other companies with significant e-commerce exposure. Growth is not usually a label given to Walmart stock. Arkansas-based Walmart is a member of the Dow Jones Industrial Average, a steady dividend payer and a member of the consumer staples sector, one of the least sexy groups on the market. * 10 Stocks to Buy From This Superstar Fund But whether Walmart stock is glitzy or not, there's no getting around the fact that Walmart stock price is up more than 21% in 2019, putting it ahead of the S&P 500 Consumer Staples Index by about four percentage points. Despite WMT's struggles in the online retail space, a situation the company is working to ameliorate, Walmart isn't going anywhere. If anything, the company and WMT stock are likely to benefit as so many other bricks-and-mortar retailers fall by the wayside.InvestorPlace - Stock Market News, Stock Advice & Trading Tips"As for Walmart, it too looks poised to continue to benefit from the closure of other retailers, especially given that its huge network of stores makes it an obvious alternative for shoppers who find competitors' doors shuttered," according to Barron's. Getting It Right OnlineWhen it comes to Walmart stock, the company's online efforts represent a good news/bad news scenario. An obvious part of the bad news is that no one is going to confuse Walmart with Amazon anytime soon. The next bit of bad news is that the company's online operations lose money."The business continues to be in the red, with losses expected this year of about $1.7 billion, up from $1.4 billion last year, according to Morgan Stanley estimates," reports Bloomberg.The good news is that Walmart is a $322 billion company, so a loss of $1.7 billion, even if it occurs every year, isn't a game changer. Plus, losing money in online retail for awhile is not a big deal. Ask Amazon. That company did it for years. Importantly, Walmart's online business is growing, reportedly by 40% last year."We believe Walmart is well positioned to capitalize on the digitizing retail landscape," said research firm Morningstar in a recent note. "While the ship to home channel draws the most attention, we expect the future of retail is omnichannel, with consumers expecting a menu of fulfillment options (home delivery, click-and-collect, and traditional in-store purchases) and making different choices dependent on preference, the immediacy of the need, and the nature of the item."Additionally, Walmart has distribution advantages that would make it the envy of most e-commerce companies, perhaps even Amazon. The "last mile" -- getting the package from the warehouse to customers' doorsteps -- is a concept Amazon spends billions trying to refine, but the company is still heavily dependent on relationships with traditional shipping companies.Conversely, Walmart long ago nailed the concept of getting goods from warehouses to stores, indicating it may have core competency in the last mile that the owners of Walmart stock may not be fully appreciating."Walmart should be able to use its procurement and distribution scale, store network, and digital investments to protect returns," according to Morningstar. "Its move to complementary next-day shipping, as well as expansion of grocery pickup and same-day delivery (now at 2,450 and 1,000 U.S. stores, respectively), should leave it in good stead." The Bottom Line on Walmart StockTypically, investors embrace Walmart stock as a volatility reducer and a dividend play (the shares yield just 1.86% but Walmart stock has a steady history of payout growth). The company had $18.29 billion in free cash flow at the end of last year, a point that's rarely raised when pundits talk about WMT stock.So obviously, Walmart has a strong balance sheet. Second, it has room to buyback Walmart stock and raise its dividends. And it can make acquisitions to shore up its online business. Finally, a case can be made that, given the growth of the company's online business, Walmart stock, viewed as a value stock, has growth-like traits.As of this writing, Todd Shriber did not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy From This Superstar Fund * 7 Stocks to Buy This Summer Earnings Season * 7 Marijuana Penny Stocks to Consider for Those Who Can Handle Risk The post Why it Might Be Worthwhile to Consider Walmart Stock appeared first on InvestorPlace.
Is Amazon primed for an earnings beat when it reports on Thursday? RBC's Mark Mahaney thinks the tech giant's e-commerce business can contribute to one.
If Amazon (NASDAQ:AMZN) whiffs on earnings after the market closes Tuesday I'll be sorely tempted to buy more AMZN stock.I first bought Amazon back when the stock was selling at $330 per share. It opened for trade July 22 at $1,971, close to the all-time high of $2,012 reached last September. That high was followed by a sickening fall that sent it to a low of $1,377 around Christmas. Throughout 2019 it has been grinding back toward its high and is now approaching it.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAmazon is expected to post earnings of $5.29 per share on revenue of $62.7 billion. That's growth of 19% from a year ago, at scale. If it hits the "whisper number" of $5.70 per share, it's 12% higher than numbers that sent it skyrocketing a year ago.Ignore those numbers when looking at Amazon stock. The Real AmazonAmazon is becoming, like Apple (NASDAQ:AAPL) -- it's a stock you own, not a stock you trade. * 10 Stocks to Buy From This Superstar Fund This is true despite the recent recent volatility in the AMZN stock price. Right now, it's fully valued. Even if it hits the high-end of estimates, you're paying 85X earnings. You're paying nearly 4X revenue for what are mostly retail sales.Most analysts will be looking for renewed top-line growth, knowing that profits will still be plowed back into the business. They may be disappointed. The AMZN stock price may fall.Having mostly built-out its global cloud footprint, Amazon has refocused this year on its delivery infrastructure. This includes a fleet of trucks and airplanes that let it break bulk for less than Walmart (NYSE:WMT) and deliver for less than FedEx (NYSE:FDX). Running these networks efficiently won't provide the kind of quick profit hit it gets from the cloud. But it makes future revenue growth more sustainable.That's one reason I expect Amazon to fall short of expectations soon. The other reason is the growing campaign of ill-feeling toward the company. Liberals hoping to break it up and conservatives resent the liberal politics of CEO Jeff Bezos. The Next PhaseThe next phase of Amazon success will combine the cloud and delivery to transform the U.S. healthcare system.Amazon's aptly named Haven unit will, like CVS (NYSE:CVS), UnitedHealth Group (NYSE:UNH) and Centene (NYSE:CNC), give the income of insurance premiums visibility and control over the outgo. This is why hospitals and doctors' groups hate and fear the trend.But this connection is coming. Big employers, Amazon and partners Berkshire Hathaway (NYSE:BRK.A) and JPMorgan Chase (NYSE:JPM) being among the biggest, can no longer deal with the waste of the current system. Like all American multinationals, these companies are paying 50-100% more to cover the health care costs of U.S. employees than international rivals.This must end.One key to ending it is to deal with chronic conditions. They represent 75% of the bill. Fighting the effects of smoking, overeating, drinking and sedentary lifestyles, leading to diabetes, heart disease and kidney failure, requires a new focus on wellness. We need to keep people out of hospitals. * 7 Marijuana Penny Stocks to Consider for Those Who Can Handle Risk This is a $3 trillion opportunity, growing at 5.5% per year. Amazon that, get just 10% of it, and you're more than doubling the size of the company. The Bottom Line On AMZNWherever clouds and devices, combined with scaled distribution, can transform an industry, AMZN can reduce waste and make money.Amazon is why the American economy continues to grow despite its political dysfunction. Only fools, and those who thrive on inefficiency, stand in its way.In the short term, however, Amazon may have a tough time matching past success. Delivery infrastructure doesn't provide the hit to earnings that cloud does. Once it has that scale, however, watch out. That's why you accumulate Amazon on weakness, and, if your time horizons are short, sell into strength.Dana Blankenhorn is a financial and technology journalist. He is the author of a new environmental story, Bridget O'Flynn and the Bear, available now 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 shares in JPM, CVS, AAPL and AMZN. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Defense Stocks to Buy to Fortify Your Portfolio * 10 High-Flying, Overvalued Stocks in Danger of Crashing * 8 Stocks to Buy That Are Growing Faster Than Amazon The post Amazon Investors Should Buy Into Earnings Weakness, Sell Into Strength appeared first on InvestorPlace.
Bearish FedEx investors worry that Amazon’s logistics ambitions are a threat to parcel shippers. “I don’t believe Amazon Logistics has any intension of being a third competitor in the marketplace,” Glenn Gooding, president of iDrive Logistics, said.
Dollar General (NYSE:DG) stores are not all the same.They look the same on the outside and, to some extent on the inside. But if you look closely, they're all different.Many small towns have a Dollar General because they're just too small to support a Walmart (NYSE:WMT) or even a standard grocery store. Some Dollar Generals sell high-end booze and cigarettes. Others are food deserts, with just frozen food and ready-to-eat snacks, surrounded by miles of poverty.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Defense Stocks to Buy to Fortify Your Portfolio This is how Dollar General sawed off the challenge of Dollar Tree (NASDAQ:DLTR) after that company bought Family Dollar in 2015. Since then, Family Dollar has been closing hundreds of outlets, whose one-size-fits-all stocking can't compete. Over the last two years Dollar General's stock gain of 91.5% has nearly doubled the 52% gain of its rival, even though the Dollar Tree chain itself caters to upper-income shoppers. The Secret of Dollar GeneralMost reporters who covered the "dollar store war" early in this decade missed the point, because most finance reporters seldom leave their desks.It was the differences among individual Dollar General stores that let DG win the war. Neighborhoods that liked pork rinds got pork rinds. Small towns where some people made more money got higher-end merchandise. One size does not fit all.Editorial prejudice still prevents reporters from seeing it. Dollar stores are still covered as though they're all one thing.Dollar General stores can thrive in towns under 20,000, where people are making under $40,000 per year. It's this ability to make a profit from poor people that gives Dollar General its bad reputation.As farming communities plunge into feudalism, with just a few remote landowners and a lot of poverty, Dollar General expands. It's not always welcomed by everyone, but, for towns that might die otherwise it's a godsend. Don't Blame DGPoor counties blame Dollar General for their poverty, for taking what money their people do have and spiriting it away for plastic chairs and off-brand detergent.But where people do have money Dollar General can deal with it, adding seasonal merchandise, FedEx (NYSE:FDX) package drop-offs and delivery, Western Union (NYSE:WU) wire transfers, even fresh produce if there's a market for it.Dollar General reflects its markets. This is the mirror poor neighborhoods don't want held up to them. Dollar General can scoop up whatever money a small town or ghetto might have. Once it is established, it can then cater to whatever middle-class incomes exist there. That's also part of its business model. The Dollar General Stock Success StoryThis has made Dollar General a great momentum stock, a company that can prosper in both good times and bad.Dollar General isn't a fast-growing company, but it is growing. Sales are up 25% over the last three years, and Dollar General brings 6% of that to the net income line. That's twice what Kroger (NYSE:KR) does, and more than three times what mighty Walmart can do.This means Dollar General sports a market cap of almost $36 billion on sales of $25 billion. For a retailer this is insane. The only one that can beat it is Costco Wholesale (NASDAQ:COST), which is worth 87% of sales. The Bottom LineDollar General has the reputation of being a bottom feeder, but the bottom must be fed. The company knows which markets it can serve and learns to serve those markets.The mirror Dollar General holds up to its customers, and to the rest of us, may distress some, but it's what we are. If we change, the store will change with us.Dana Blankenhorn is a financial and technology journalist. He is the author of a new environmental story, Bridget O'Flynn and the Bear, available now at the Amazon Kindle store. Write him at email@example.com or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in KR. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Defense Stocks to Buy to Fortify Your Portfolio * 10 High-Flying, Overvalued Stocks in Danger of Crashing * 8 Stocks to Buy That Are Growing Faster Than Amazon The post The Different Faces of Dollar General appeared first on InvestorPlace.
Amazon's (AMZN) strengthening Prime enabled services and benefits, and expanding AWS services portfolio are likely to drive second-quarter 2019 results.
Alden’s decisions to close hundreds of Fred's stores are playing out in meaningful ways far beyond Memphis, much less New York.
(Bloomberg Opinion) -- Kroger Co., the giant but aging supermarket chain, has unleashed a flurry of initiatives to ensure it won’t get thumped in a post-Amazon-buying-Whole-Foods world: It is revamping locations, bought a meal-kit company, and sold off its convenience-store business. Its biggest gamble, though, is a partnership with British online grocer Ocado Group Plc. The two plan to build as many as 20 automated grocery warehouses in the U.S. to help Kroger turbocharge its e-commerce operation.Grocery has proven a uniquely tough business to bring into the online era. Orders often have dozens of items – some frozen, some cold, some room temperature – and much of the inventory is perishable. That simply makes for a different challenge than the one Amazon.com Inc. has successfully tackled by getting a single laptop computer or phone charger on your doorstep in one day.Ocado has focused specifically on digital grocery shopping for its entire corporate life, and it shows. At its newest online grocery fulfillment center outside London, 1,000 robots zoom around a grid at a speed of four meters (13 feet) per second, extending a gripper to pick up and transport bins of groceries. The system strips out labor costs and enables human workers to pack about 600 items per hour. Every aspect of the fulfillment process is designed for the unique quirks of grocery, including systems that cue workers about what items in a given order they should put in a single grocery bag. (This ensures, for example, that something heavy doesn’t plop onto a dozen eggs.) Ocado estimates its system saves one hour of labor for every 50-item order – no small thing in a segment of retail with notoriously thin profit margins.There is a real benefit to specializing in solving the grocery conundrum, as Ocado has done. The company’s sales increased 12% last year to 1.6 billion pounds ($2 billion), according to its annual report, and its active customer count increased 11 percent from the previous year. So I’m confident that Ocado will improve Kroger’s game and equip it with advantages in the battle for U.S. market share. Ocado’s system will enable it to fill orders especially quickly and has a high level of accuracy – both important contributors to customer satisfaction. Down the road, it’s not hard to envision even more labor costs getting stripped out of Ocado’s system, enhancing the model’s profitability. But timing is everything in the fast-changing online grocery world. And right now, Amazon and Walmart Inc. are leading the pack.Neither Amazon nor Walmart has a system with the exact sort of wizardry of Ocado’s; even so, each is exploring its own ways of using automation to help with profitability and customer experience. Walmart is testing driverless cars for grocery delivery, and Amazon recently showed off some new warehouse robots of its own. It will take Kroger up to five years to build out the fleet of Ocado warehouses it has committed to building. I worry that won’t be fast enough to vault it past Walmart and Amazon in the race for online grocery supremacy – no matter how advanced and efficient Ocado’s system is.Take, for example, the specialized delivery vehicles Ocado has developed. They can be loaded with racks of grocery-filled bins designed to fit practically every inch of available cabin space and they have a separate compartment for cold items. A routing algorithm helps ensure they are loaded in an order conducive to a driver’s delivery path and that those routes are optimized for efficiency. This sounds way more efficient than some of the solutions Walmart and Amazon use these days, where a DoorDash or Amazon Flex contractor-courier loads up the trunk of his sedan with groceries. But that efficiency gain is only useful if Kroger can get the density of orders to make it count.Investors have already punished Kroger this year for disappointing on comparable sales growth and its annual profit forecast. It’s hard to assess how much this project might further test their patience, especially because the companies haven’t offered specifics on how they will share the costs of establishing and maintaining these facilities. But we know it won’t be cheap: Kroger has said it is investing $55 million to build the first of the Ocado-powered fulfillment centers.It might help if Kroger talked up other ways the warehouses could potentially support its business later, such as one day sending replenishment stock to nearby stores. And the new warehouses, in some cases, will be positioned to potentially expand Kroger’s addressable market. One of the first facilities Kroger committed to building is in central Florida, a market that Bloomberg Intelligence analyst Jennifer Bartashus points out is one where regional heavyweight Publix Super Markets Inc. is beloved and ubiquitous and Kroger doesn’t have much presence. Kroger sees opportunity to crack this market with a compelling online offering.Overall, Kroger is better off for having partnered with Ocado. But I suspect it will turn out this arrangement doesn’t completely jolt the broader U.S. grocery industry the way it could have if it had been forged three or five years ago, before the competition had fully awakened to the e-commerce opportunity. Better late than never. To contact the author of this story: Sarah Halzack at firstname.lastname@example.orgTo contact the editor responsible for this story: Beth Williams at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Sarah Halzack is a Bloomberg Opinion columnist covering the consumer and retail industries. She was previously a national retail reporter for the Washington Post.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
One reason wages aren’t rising faster: companies making some creative moves to their corporate hierarchy.
The differences between Walmart's business model and Target's are immediately apparent. Walmart prefers the lowest cost, while Target angles more toward profit margin and youthful image.
Investing.com - The European Central Bank’s policy meeting will be front and center this week as investors wait to see what action central bank head Mario Draghi may take to support the euro area economy.
Retirement Systems of Alabama made the investment moves in the second quarter. Stock in Walmart has reached record highs since then.
Walmart Inc. is reorganizing some of its leadership team in the wake of the decision to absorb Jet.com into its digital business. In the memo sent to associates, which was also sent to MarketWatch, Greg Smith has been named to head the combined supply chain team, which will bring together supply chain heads for grocery, e-commerce, fleet operations, and other business functions. Nate Faust, who had been leading the e-commerce fulfillment process, will help with this transition and then move to another post within the company, which will be discussed at a later time. Michael Dastugue has been named Walmart U.S. chief financial officer and Steve Schmitt, who is currently the CFO for Sam's Club, has been named U.S. e-commerce CFO. Brandi Joplin, currently chief audit executive, will take on the role of Sam's Club CFO and Todd Sears, currently assistant controller, will become chief audit executive. Ashley Buchanan has been named U.S. e-commerce chief merchandising officer. And Jeff Shotts, who is currently the e-commerce CFO, will now lead the U.S. marketplace business, reporting to Marc Lore. There are now openings for chief experience and strategy officer, chief product officer, and leader of the customer care team. Walmart stock has rallied more than 23% for the year to date while the Dow Jones Industrial Average is up 17% for the period. Read: Walmart CEO McMillon says the retailer has been playing ‘catch up’ in e-commerce
Over this decade, the freight industry has witnessed a steady queuing up of stakeholders within the market toward digitalizing their workflow, with the hope of improving visibility into operations and end-to-end transparency across supply chains. "The problem is not technology, it is the organization of the market," he said.