Walmart Announces New Pickup Discounts to Lure Shoppers
In yet another move to strengthen its online offerings, Walmart (WMT) announced the introduction of pickup discounts on April 12.
Walmart (WMT) has taken a series of strategic measures to beef up its e-commerce arm.
As of April 7, Walmart (WMT) was trading at a 12-month forward PE ratio of 16.9x. It’s trading at a discount to the forward PE ratios of XLP and SPX.
Despite the challenging macro environment, Walmart’s revenue rose 0.80% to $485.9 billion in fiscal 2017, which ended on January 31, 2017.
Walmart (WMT) shares rose more than 2% on April 7 after Telsey Advisory Group upgraded its stock to “outperform” from “market perform.”
Of the 32 analysts covering Costco (COST), 69.0% have rated the stock as a “buy” as of April 5. The stock has been rated as a “hold” by 31% of these analysts.
Costco (COST) stock started off 2017 with a decent performance—until it announced the fiscal 2Q17 (ended February 12, 2017) results.
Despite its challenging operating environment, Costco (COST) reported strong sales in March, with comparable-store sales, or comps, rising 6.0%.
On March 20, Target was trading at a 12-month forward PE ratio of 13.6x—lower than the S&P 500 Index’s (SPX) PE ratio of 18.8x.
Of the 28 analysts covering Target (TGT) stock, 22.0% have rated the stock as a “buy” as of March 20. Target stock has been rated as a “hold” by 64%.
Target (TGT) has a strong track record of rewarding investors with higher dividends and share repurchases.
Target is planning to invest $2 billion in the current fiscal year and about $7 billion over the next three years.
Target reported sluggish fiscal 4Q16 results on February 28, missing Wall Street’s expectations. Its total sales of $20.7 billion represent a 4.3% YoY fall.
Fiscal 2016 was a tough year for Target (TGT), and 2017 isn’t looking much better.
If we look at the recent performance of the company, Walmart’s US (SPY) segment has benefited from the company’s e-commerce initiatives.
Wal-Mart Stores (WMT) appears to be on an acquisition spree, buying small online retailers to solidify its position in the fast-growing online space.
As of March 15, Walmart (WMT) was trading at a 12-month forward PE ratio of 16.3x, which is lower than the peer group average.
Of the 35 analysts covering Walmart (WMT) stock, 32.0% have rated the stock a “buy” as of March 15. The stock has been rated “hold” by 57% of analysts.
Walmart (WMT) has a solid track record of rewarding investors with higher dividends and share buybacks.
Walmart’s (WMT) Sam’s Club is in the middle of a revamping process aimed at driving sales and profitability for the segment.