Why Walmart Impressed Investors and Analysts Last Week
Walmart (WMT) was featured among the top five gainers of the consumer staples sector in the week of May 15–19, 2017. The stock rose 3.2% on May 18, 2017.
In this part of the series, we’ll look at the important events for the week ahead, from May 22–26, 2017.
The Home Depot (HD), an Atlanta-based home improvement retailer, posted strong 1Q17 results on May 16, 2017, surpassing Wall Street estimates.
Dr Pepper Snapple Group’s (DPS) stock was upgraded by Morgan Stanley on May 16, 2017, to “overweight” from “equal weight.”
On May 17, 2017, Colgate-Palmolive (CL) stock rose ~6.0% on the back of rumors that the company might be sold.
Coty (COTY) reported its fiscal 3Q17 results on May 10, 2017. Its revenue and earnings beat Wall Street estimates.
Costco Wholesale (COST) is expected to post fiscal 3Q17 revenue of ~$28.5 billion, which would represent a YoY growth of 6.5%.
Ford Motor (F) has “plans to cut 1,400 salaried jobs in North America and Asia.” That decision was in line with the company’s cost-reduction strategy.
The week of May 15–19, 2017, saw the S&P 500 Index (SPY) in the red with a fall of 0.38%. It was mainly the result of the mid-week fall in the prices of major stocks.
TJX Companies (TJX) generated diluted EPS (earnings per share) of $0.82 in fiscal 1Q18, which ended on April 29, 2017.
As of May 17, 2017, Colgate-Palmolive (CL) was trading at a 12-month forward PE ratio of 25.5x—up from its forward PE multiple of 24.1x on May 16.
Colgate-Palmolive’s (CL) sales are trending down. There was a stronger-than-expected sales decline in the US due to retailers reducing their inventory.
Colgate-Palmolive (CL) stock rose more than 7% on May 17, 2017, before closing at $75.69—up ~5.7% due to rumors that the company is for sale.
Most of the analysts covering Herbalife are neutral on the stock. However, this could change following the company’s better-than-expected 1Q17 results.
Herbalife’s (HLF) China business has been the key engine behind its stellar growth in the past. Lately, the region showed slow growth.
Herbalife’s (HLF) 1Q17 sales of $1.1 billion beat analysts’ estimate but fell ~2% on a YoY (year-over-year) basis.
Herbalife’s bottom line got a significant boost from lower taxes during the reported quarter. Its adjusted effective tax rate came in at 22.9%.
Herbalife (HLF) stock rose ~9.2% as of 10:38 AM EST on May 5, 2017, following the company’s 1Q17 results. Herbalife stock outshined the S&P 500 Index (SPX).
The majority of analysts covering Clorox remain neutral on the stock. However, this could change following the company’s industry-leading sales and volume growth in fiscal 3Q17.
On May 3, 2017, The Clorox Company was trading at a 12-month forward PE (price-to-earnings ratio) of 23.5x. The stock was trading at a premium to the S&P 500 Index’s 18.7x.