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This basket consists of brick and mortar who have lost considerable market share to online competition.
Analysts say Walmart’s second-quarter earnings show how the company’s focus on various parts of the business came together for growth, including automated floor cleaners.
Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Office...
More than 10 years ago Ryan and Courtney Luke were both working, but with nothing to show for it except big cars and big debts. The Phoenix, Ariz. couple was making $72,000 in take-home pay, yet Ryan had $20,000 of debt, between the loan for his Nissan XTerra (NSANY) and the wedding band and engagement ring he bought on a credit card for his bride. With all their money tied up in their cars and debts, they couldn’t afford to spend on other activities or experiences, said Ryan, a 35-year-old police lieutenant at a large law enforcement agency in Arizona.
Investing.com - This week investors will be watching to see how the Federal Reserve may respond to recession fears whipped up by the inversion of the Treasury yield curve.
In the hour that it takes a new Walmart employee to earn the $11 starting wage, the family that owns the retail giant has banked $4 million. In fact, the third-generation heirs of Walmart (WMT) founder Sam Walton have amassed a $191 billion fortune to top Bloomberg’s list of the richest families in the world. Walmart rang up $514 billion in sales from more than 11,000 stores across the globe, Bloomberg added.
Benzinga has examined the prospects for many investor favorite stocks over the past week. Bullish calls included tech leaders and a retail colossus. Bearish calls also included tech giants, as well as ...
Doug McMillion, Walmart’s chief executive, addressed gun policy in his remarks about the retail giant’s quarterly earnings.
In the past, China has shown extraordinary restraint in response to U.S. tariffs and President Trump’s critical tweets. This is a critical time for investors. All investors ought to consider doing the same.
The stock market fell in volatile fashion amid China trade news and the first inverted yield curve since 2007. Walmart, Cisco, Macy's, GE were big movers.
Rating Action: Moody's upgrades five and affirms nine classes of MSBAM 2012- C5. Global Credit Research- 16 Aug 2019. Approximately $943 million of structured securities affected.
What shape is the consumer in? Were Macy's Inc (NYSE: M) poor earnings report indicative of the retail environment or should investors look instead at Walmart Inc (NYSE: WMT)? Walmart is a "great barometer" to gauge the state of the consumer, Oppenheimer analyst Brian Nagel said Friday on CNBC's "Squawk Box" segment.
Target Corp. (NYSE: TGT) this week announced the big-name designs it's bringing back for the 20th anniversary of its Design for All fashion partnerships. The collection, a reflection on two decades of website-crashing, store campouts-causing collaborations with an array of fashion and product designers, will go on sale Sept.
Amazon (NASDAQ:AMZN) stock has continued to fall along with the market. For the most part, the decline is not the fault of the company. An intensified U.S.-China trade war and the yield curve inversion have made investors uneasy, weighing on AMZN stock and most other equities.Source: Shutterstock However, problems unique to AMZN have also hurt the stock. Moreover, the company does not pay a dividend, and its valuation exceeds that of other mega-tech companies. Given these factors, the price-earnings (PE) ratio of Amazon stock appears set to fall further. Beware of Falling ValuationsThe yield-curve inversion has an effect on AMZN and other hot tech stocks that receives little attention. Specifically, the inversion facilitates multiple compression.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAmazon stock has traded at an elevated PE ratio, often reaching PE ratios of 100 or higher. Investors can attribute much of its recent swoon to the law of large numbers. However, in recessionary environments, even the hottest of companies struggle to hold onto their premium valuations. * 10 Cheap Dividend Stocks to Load Up On The forward PE of AMZN stock has now fallen to about 53. Even after the company's disappointing earnings report issued in July, analysts still, on average, expect profit growth of 16.6% this year and 41.4% next year. Typically, given the high profit-growth estimates, the elevated PE would not concern me. However, I see disturbing signs coming from the company itself.Specifically, analysts' profit estimates for AMZN continue to fall. Analysts, on average, had previously expected earnings for the fiscal year to come in at $27.46 per share. Due to AMZN's lowered guidance, they now forecast $23.49 per share. Moreover, the company's cloud unit, which accounts for the majority of its profits, has been hurt by stronger competition from Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG). The cloud unit generated $8.38 billion of revenue last quarter, versus analysts' average outlook of $8.48 billion .That should worry investors because they have treated and valued AMZN more like a cloud company than an e-commerce firm. Other Challenges Facing Amazon StockThe antitrust investigation that's likely to include AMZN as well as Alphabet, Apple (NASDAQ:AAPL), and Facebook (NASDAQ:FB) will also weigh on Amazon stock.But I question whether the probe will hurt AMZN stock over the long-term. Jeffries & Co. analyst Brent Thill estimates the value of the cloud business as a standalone company at $400 billion. I think a spin off of the cloud unit would unlock a significant amount of value. But the probe will breed more uncertainty in the short-termAmazon has also been blamed by President Trump for the losses of the United States Post Office (USPS). Thus far, the decision by FedEx (NYSE:FDX) to not deliver Amazon packages has probably hurt FedEx more than it has AMZN. Still, I think FedEx's move will be worrisome for AMZN if the President criticizes the retail giant's use of the USPS again.None of these challenges will undermine the company's operations. Still, investors now have a lot more reasons to question the multiple of AMZN stock, making the shares a poor bet in the shorter-term. The Bottom Line on Amazon StockMany signs suggest that the valuation of Amazon stock will drop. First, the inverted yield curve indicates that a recession is looming. Stock valuations tend to fall when recessions are looming. Moreover, the slowing growth of the cloud unit and the underwhelming growth of other divisions could lead investors to doubt the attractiveness of Amazon stock at its current levels. .I also agree with the assertion of another InvestorPlace columnist, James Brumley that Amazon will emerge as a winner after the slowdown runs its course. I also do not expect AMZN to be broken up, despite President Trump's feelings about the company.However, since AMZN does not pay a dividend and the outlook of AMZN stock is dimming, I would not recommend buying AMZN stock at this time.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 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post Amazon Stock Looks Poised to Be Hit by Multiple Compression appeared first on InvestorPlace.
Walmart is a retail titan taking the fight to Amazon. But earnings growth is tepid. The stock is hitting new highs, but is it a good buy?
Editor's note: InvestorPlace's Earnings Reports to Watch is updated weekly. Please check back next week for our latest earnings picks.The earnings calendar turns to retail next week. And that might not be a good thing for the sector.To be sure, Walmart (NYSE:WMT) did post a strong Q2 report on Thursday, with raised full-year guidance leading WMT stock to rally 6%. But that followed a disastrous report from Macy's (NYSE:M), which cut its outlook and saw its stock plunge to a post-financial crisis low.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat split isn't a surprise to anyone who has followed the retail industry in recent years. Those companies with the scale to manage through a quickly changing environment have been able to at least survive, if not thrive. (Walmart stock, for instance, has roughly doubled from late 2015 lows.) Smaller operators, with few exceptions, have taken a beating. * 10 Best Stocks to Buy and Hold Forever Earnings reports next week seem unlikely to change that trend. But specialty retailers like Gap (NYSE:GPS) and department store operators Kohl's (NYSE:KSS) and Nordstrom (NYSE:JWN) will do their best to fight the tide. Meanwhile, three more leaders in the sector will try and keep pace, while a struggling tech giant attempts a turnaround of its own. Broad markets will struggle with their own external challenges, but retailers, in particular, have a big week ahead. Home Depot (HD)Source: Shutterstock Earnings Report Date: Tuesday, Aug. 20, before market openFiscal second-quarter earnings from Home Depot (NYSE:HD) will be closely watched. After all, Home Depot sits at the intersection of several of the fears rattling the market right now. Investors are worried that a recession is coming: Any weakness in consumer demand could be reflected in Home Depot sales.Increased -- and then delayed -- tariffs have amplified those cyclical concerns. Home Depot said after Q1 that it was working to mitigate the impact of those duties, but still forecast a potential impact of $1 billion annually.HD stock already has pulled back about 8% amid those worries. Any weakness in Tuesday morning's report could add to the declines.Meanwhile, rival Lowe's Companies (NYSE:LOW) follows on Wednesday. If both reports disappoint, that would be a signal that even two of the country's strongest retailers aren't immune to external factors. And that would be a big problem for the rest of retail, and maybe even the rest of the market. Target (TGT)Source: Mike Mozart via Flickr (Modified)Earnings Report Date: Wednesday, Aug. 21, before market openFor Target (NYSE:TGT), Wednesday morning's report will help answer which side of the retail divide the company sits. Is Target a real competitor to the likes of Walmart and Amazon (NASDAQ:AMZN)? Or is it not quite large enough, or strong enough, to completely determine its own destiny?Trading in TGT stock over the past few quarters shows that investors haven't quite figured out which side to take. Target stock touched $90 less than a year ago and was at $60 three months later. A 25% rally so far this year shows some confidence, while an ~8% drop in recent weeks (not coincidentally similar to that of HD stock) reflects the rising external risks.And so this seems like an important, and maybe even crucial, earnings report for Target. Walmart's blowout quarter sets the bar high. Target has tariff and macro issues of its own. The stock is cheap enough that it can rise if margins keep expanding. But it's expensive enough that it can fall if they don't. * 10 Cheap Dividend Stocks to Load Up On In short, the question is whether Target is a retail leader? Wednesday's report will help answer that question. VMWare (VMW)Source: Sundry Photography / Shutterstock.com Earnings Report Date: Thursday, Aug. 22, after market closeKey earnings reports next week go beyond the retail space. Software developer VMWare (NYSE:VMW) has an important report on Thursday afternoon. And it won't just impact VMW stock.VMWare earnings will move shares of Dell Technologies (NASDAQ:DELL) whose majority stake in VMWare is worth more than its current market capitalization. (Dell has earnings of its own, but VMWare numbers will be the big mover.) Meanwhile, the company's reported interest in Pivotal Software (NYSE:PVTL) could be a topic of conversation on the post-earnings conference call.But the Pivotal deal and Dell's potential plans for its VMW stake are just noise. VMWare simply has to stem the bleeding. The stock has dropped by 30% just since May. Here, too, cyclical fears are a factor, but soft fiscal first-quarter earnings in late May didn't help the cause. At 20x forward earnings, VMWare stock can rally if the company can deliver. At the moment, however, that seems like a big if.As of this writing, Vince Martin is long shares of Gap, Dell and is short call options in VMWare. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post 3 Earnings Reports to Watch Next Week appeared first on InvestorPlace.
Even after a correction of 27% from the highs of 2019, Plug Power (NASDAQ:PLUG) stock is higher by almost 100% from December 2018 levels. The rally in the PLUG stock price has been triggered by strong revenue growth, expectation of positive EBITDA in the fourth quarter and an optimistic growth target for the coming years.Source: Shutterstock After a sharp rally, I believe that Plug Power stock is likely to remain sideways or trend lower in the coming quarters. Unless something radical happens, I'll likely remain cautious on shares for these reasons: Client Concentration Is a ConcernIn the material handling and airport equipment segment, Plug Power boasts a long list of blue-chip clients. They include Walmart (NYSE:WMT), Amazon (NASDAQ:AMZN), BMW, General Motors (NYSE:GM), Honda Motor (NYSE:HMC), Toyota (NYSE:TM), Procter & Gamble (NYSE:PG), Carrefour (OTCMKTS:CRRFY), among others.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHowever, for the year ended December 2018, Amazon and Walmart contributed to 66.7% of revenue. * 10 Stocks Under $5 to Buy for Fall While I am not suggesting potential losses of clients, PLUG's business scalability is questionable. That's especially the case for a company that has witnessed meaningful equity dilution.It is worth noting that company's agreement with Walmart commenced in 2014. Furthermore, the multi-year agreement with Amazon was initiated in 2016. During the five-year period from 2014 through 2018, the company's revenue has grown at a CAGR of 22.3% with sustained cash burn. With a small revenue base, growth has been muted.Plug Power does expect to accelerate growth in the coming years. However, with EBITDA just expected to turn positive in 2019, cash burn is likely to sustain. This might imply further equity dilution. Thus, the PLUG stock price can remain sideways to lower even if top-line growth is healthy. Looking Beyond Material Handling EquipmentThe key focus for Plug Power stock has been the material handling equipment. However, the company does not expect the segment to be a growth driver in the coming years.The next three to five years is likely to focus on expansion in the medium- and light-duty vehicles segment. On this front, the ProGen engine can be a game-changing product. Plug Power has already signed a deal with StreetScooter (a subsidiary of DHL) for delivery of ProGen hydrogen fuel-cell engines.The important point to note is that StreetScooter will initially deliver only 100 hydrogen fuel cell-powered trucks for on-road use. Therefore, the contract does not immediately add meaningful revenue.Based on the initial response, the order flow can potentially accelerate. The positive point is that the deal allows Plug Power to make inroads in terms of contact with electric vehicle manufacturers. The global EV market is likely to swell to $912 billion by 2026.Even if Plug Power taps the logistics service market, there will be enough potential to expand.Another potential positive for PLUG stock is expansion in the European markets. The agreement with StreetScooter coupled with an expanded contract with FM Logistic will help the company make its presence felt in a big market.The key question remains business scalability. The current contracts are relatively small in terms of adding to the backlog.As a matter of fact, Plug Power reported an order backlog of $540 million for the year ended December 2018. Importantly, the backlog has an execution period that ranges from 90 days to 10 years. Therefore, revenue visibility needs a boost in the coming years if PLUG stock is to trend higher. Final Words on PLUG StockPlug Power has a strong revenue guidance of $235 million to $245 million for 2019. In addition, the company expects revenue in the "medium-term" to increase to $450 million to $550 million.This growth is only possible if the company's ProGen sales gain traction in the medium and light-duty vehicle segment. The company is also looking at hybrid buses and small to mid-size cars as potential markets. However, it is too early to assume or conclude that these markets will deliver in terms of product acceptability and revenue growth.It therefore makes sense to remain in the sidelines. With a target to accelerate growth, Plug Power will need funding. Further, equity dilution can negatively impact PLUG stock.More importantly, it remains to be seen if the company's products gain wider market acceptance.As of this writing, Faisal Humayun did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks Under $5 to Buy for Fall * 5 Stocks to Avoid Amid the Ongoing Trade War * 7 5G Stocks to Buy Now for the Future The post Plug Power Stock Is High on Innovation but Low on Profitability Potential appeared first on InvestorPlace.