Walmart Inc $ 117.61 -0.07 (-0.06%)
Walmart News and Headlines - WMT
The Dow Jones Industrial Average closed at 29,232.19 on Tuesday with a loss of 165.89 points or -0.56%. The S&P 500 closed at 3,370.29 for a loss of 9.87 points or -0.29%. The Nasdaq Composite closed at 9,732.74 for a gain of 1.57 points or 0.02%. The VIX Volatility Index was higher at 14.83 for a gain of 1.15 points or 8.41%.
Tuesday's market movers
U.S. indexes started the shortened week lower after a warning from Apple Inc. on coronavirus affects. The company announced it was likely to miss quarterly earnings guidance due to lower sales primarily in China. In
Walmart Inc. (WMT) released its fourth-quarter results before the market opened on Feb. 18.
The retail giant posted disappointing earnings and revenue. It noted several factors were responsible for weak results, including a short holiday season, low demand for key consumer staples and political unrest in Chile. In addition, the company experienced poor sales of toys, apparel and video games during the holiday season.
Snapshot of the quarter
Walmart reported adjusted earnings of $1.38 per share. Analysts had predicted earnings of $1.43 per share. Revenue grew 2.1% to $141.67 billion, which fell short of expectations of $142.49 billion.
The guru trimmed the Anixter International Inc. (AXE) position by 95.05%. The portfolio was impacted by -0.66%.
The distributor of network, electrical and utility power products has a market cap of $3.33 billion and an enterprise value of $4.59 billion.
GuruFocus gives the company a profitability and growth rating of 7 out of 10. The return on equity of 15.46% and return on assets of 5.45% are outperforming 63%
Income investors can generate superior returns by buying high-quality dividend growth stocks and holding them for long periods of time. For example, the Dividend Aristocrats are a group of 64 stocks in the S&P 500 Index that have each increased their dividends for 25 consecutive years or longer. The Dividend Aristocrats collectively have outperformed the S&P 500 Index by 0.4% per year over the past decade.
Investors can purchase shares of the Dividend Aristocrats on an individual basis or investors can purchase the ProShares S&P 500 Dividend Aristocrats ETF (NOBL). While we believe investors can generate even stronger returns by
Walmart Inc (WMT) has investment appeal, in my view, even after its 22% stock price rise in the past year.
The retailer is investing in its website, diversifying into new markets and implementing new technology to widen its economic moat.
The company is investing in its e-commerce services. For example, it is increasing the number of its stores that offer same-day grocery pickup so that 3,100 of its locations will offer the service by the end of fiscal 2020. It also expects to increase the availability of its same-day grocery delivery to 1,600
An investor who finds a company with economies of scale may have found a company with a competitive advantage.
In chapter three of “Competition Demystified: A Radically Simplified Approach to Business Strategy,” Bruce Greenwald and Judd Kahn explored what economies of scale are, as well as their strengths and weaknesses. Investors will find this knowledge helpful when trying to determine if a company has a competitive advantage (aka a moat).
As noted in chapter one of the book, economies of scale is one form of a barrier-to-entry advantage; the other two are supply advantages and demand advantages, as described in
For investors with a value inclination, there are few things that match a competitive advantage, or as Warren Buffett (Trades, Portfolio) calls it, a moat that protects your business. The reason is simple; companies with moats are insulated, at least to some extent, from the kind of competition that kills margins. They enjoy a near-monopoly of sorts, allowing them to deliver profits that exceed the cost of capital.
How do you tell which businesses have a competitive advantage and which do not? And if a business has an advantage, will it last for the
On Jan. 29, Berkshire Hathaway (BRK.A) (BRK.B) announced that it was selling its media interests to Lee Enterprises (LEE) for $140 million in cash.
This deal has attracted plenty of attention, not least because Berkshire's CEO and chairman Warren Buffett (Trades, Portfolio) has only given the green light on a handful of disposals over the past few decades.
The Oracle of Omaha has also said in the past, "our favorite holding period is forever." This sale implies that that is not the case.
The disposal raises some important questions. For example, if Buffett is happy to dispose
E-commerce company eBay (EBAY) released its fourth-quarter results on Jan. 28 after the market closed. The company’s earnings and revenue surpassed Wall Street’s projections.
Snapshot from the quarter
The marketplace platform posted diluted earnings per share of $0.81 in the fourth quarter. Revenue for the same period came in at $2.82 billion, down 2% on a year-over-year basis. Analysts had predicted earnings of 76 cents per share on $2.82 billion in revenue.
Gross merchandise value plunged 5% to to $23.3 billion. The company’s marketplace platforms accounted for $22 billion of total gross merchandise value. During the quarter,
On Jan. 8, Walmart (WMT) introduced the Alphabot, which is an automated 20,000 square foot fulfilment system that integrates human labour and robot speed in order to make grocery pickup service faster and more efficient.
Prior to the new model, the manner of managing order fulfilment was highly labor intensive. Therefore, the introduction of robot technology in online sales fulfilment was perhaps inevitable.
The Alphabot is an automated warehouse that combines the efforts of humans and a fleet of robots towards efficient online grocery sales fulfilment. The Alphabot’s robots, which are two feet wide, gather the products
Bed Bath & Beyond Inc. (BBBY) released its third-quarter financial results after market closed on Jan. 8. The New Jersey-based home goods retailer posted quarterly earnings and revenue that lagged behind Wall Street’s estimates.
Retailers like Amazon (AMZN), Wal-Mart (WMT) and Target (TGT) have consistently put pressure on Bed Bath as they expand the offerings in their stores and online websites.
Bed Bath & Beyond's results were also weighed down by one less week of holiday sales, which was due to the calendar shift of Thanksgiving.
By the numbers
The company registered an adjusted loss per share of 38
The Dow Jones Industrial Average closed at 28,515.45 on Dec. 24 with a loss of 36.08 points or 0.13%. The S&P 500 closed at 3,223.38 for a loss of 0.63 points or 0.02%. The Nasdaq Composite closed at 8,952.88 for a gain of 7.24 points or 0.08%. The VIX Volatility Index was higher at 12.63 for a gain of 0.020 points or 0.16%.
Tuesday's Market Movers
U.S. indexes ended mostly flat Tuesday with light trading and early market closes. The down day dampened hopes of a Santa Claus rally, which requires gains over the last five days of December
The so-called competitive niche occurs when a company holds the advantage to compete effectively in a specific segment of the market, given its resources and competencies. If that advantage is promising enough to last for the years or even decades to come, then we think that the niche focus could lead to an economic moat. Such a scenario often happens to smaller-scale businesses, as concentrated effort counts a lot when they deal with a narrow target group.
From an investment perspective, we would need to examine the profitability and return on investment to avoid niches that are too specialized or
General Mills Inc. (GIS) released its second-quarter financial results before the opening bell on Dec. 18. Both earnings and revenue beat analysts' expectations.
Snapshot of the quarter
The maker of Cheerios cereal posted second-quarter earnings of 95 cents per share, topping the consensus estimate of 88 cents per share. Revenue of $4.4 billion remained flat compared to last year, but surpassed expectations of $4.35 billion.
Organic net sales grew 1% thanks to higher organic volume as well as high demand for pet food.
“I’m encouraged by our second-quarter performance, including the broad-based improvement in our organic sales trends and positive
That year, the young investor used 5% of his partnerships' capital to buy a 5% stake in a little-known, up-and-coming company called The Walt Disney Co. (DIS).
Buffett worked out that the market value of the company was less than the value of its theme parks, which made the stock a traditional value investment. He bought 5% and then sold it a year later for a 50% profit.
Buffett would own Disney again in the
The Dow Jones Industrial Average closed at 28,239.28 on Wednesday with a loss of 27.88 points or -0.10%. The S&P 500 closed at 3,191.14 for a loss of 1.38 points or -0.04%. The Nasdaq Composite closed at 8,827.73 for a gain of 4.38 points or 0.05%. The VIX Volatility Index was higher at 12.58 for a gain of 0.29 points or 2.36%.
Wednesday’s market movers
The Dow Jones and S&P 500 retreated from highs Wednesday, while the Nasdaq continued its run with another closing record. Investors were watching impeachment proceedings in the House of Representatives, where legislators will vote Wednesday
FedEx Corp. (FDX) released its second-quarter results for fiscal 2020 on Dec. 17 after the market closed. The logistics giant’s earnings and revenue lagged Wall Street’s estimates due to declining global economic conditions as well as Amazon’s move to cut some of its ties with FedEx.
The courier company recorded second quarter adjusted earnings of $2.51 per share, down 38% year-over-year. Wall Street had anticipated earnings of $2.76 per share. Revenue for the same period came in at $17.32 billion, down roughly 3% year-over-year and below Wall Street’s expectation of $17.58 billion.
“Fiscal 2020 is a year of
Amazon Inc. (AMZN) announced on Sunday that it will disallow its third-party sellers from using the FedEx Corp. (FDX) ground delivery network for managing Prime shipments. The company cited a decline in the performance of FedEx ground service in times when holiday shipments were huge. The ban is slated to start this week.
Third-party merchants make up more than 50% Amazon’s total goods sold, but neither Amazon nor FedEx mentioned how many shipments would be affected by the restriction. The online retail giant said the decision to temporarily ban FedEx ground for shipment is
Mexico-based Gruma SAB de CV (GPAGF) (MEX:GRUMAB) is the largest manufacturer of tortillas in the world. The company gets over half of its revenues in the U.S. Gruma’s products can be found at Walmart (WMT), Amazon (AMZN) and most major grocery store chains in the U.S.
The stock trades for 196 pesos ($10.35), there are 414 million shares and the market cap is 81.1 billion pesos ($4.27 billion). It takes 19 pesos to buy one dollar. Earnings per share are 11.19 pesos and the price-earnings ratio is 17.5. The dividend is 4.65 pesos and the dividend yield is 2.37%.
Build-A-Bear Workshop Inc. (BBW) is an Amazon-resistant, interactive retailer that allows customers to "make your own stuffed animal" and offers related products. The company is managed in three segments: direct-to-consumer, international franchising and commercial. It operates 371 stores globally and 104 franchise locations. The hands-on, interactive experience makes the company Amazon (AMZN) and internet-resistant.
Build-A-Bear is moving the correct levers (productivity, profitability and capital structure) to drive a higher future return on equity and stock price.
It has historical and relative extreme deep-value discounts for sales, book value and gross profit.The stock has declined about 35% over the