Target Misses the Mark
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 26 2024
0mins
Should l Buy WMT?
Source: NASDAQ.COM
Target's Earnings Report: Target reported lower sales and profits, with a nearly 20% drop in stock price attributed to unsold inventory and cautious consumer spending, contrasting with Walmart's strong earnings. CEO Brian Cornell noted challenges in the operating environment and emphasized the need for effective inventory management.
Warner Bros. Discovery's Value Drivers: Analysts discussed Warner Bros. Discovery's valuable assets, including its streaming service Max and film franchises like Harry Potter and DC Comics. The company faces challenges due to debt and competition in the streaming market, leading to skepticism about its future growth despite recent subscriber gains.
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Analyst Views on WMT
Wall Street analysts forecast WMT stock price to fall
26 Analyst Rating
25 Buy
1 Hold
0 Sell
Strong Buy
Current: 133.640
Low
119.00
Averages
125.75
High
136.00
Current: 133.640
Low
119.00
Averages
125.75
High
136.00
About WMT
Walmart Inc. is a technology-powered omnichannel retailer. The Company is engaged in the operation of retail and wholesale stores and clubs, as well as eCommerce Websites and mobile applications, located throughout the United States (U.S.), Africa, Canada, Central America, Chile, China, India and Mexico. It operates in three reportable segments: Walmart U.S., Walmart International and Sam's Club U.S. The Walmart U.S. segment includes the Company's mass merchandising concept in the U.S., as well as eCommerce, which includes omni-channel initiatives and certain other business offerings such as advertising services. The Walmart International segment consists of the Company's operations outside of the U.S. through its subsidiaries, as well as eCommerce and omni-channel initiatives. The Sam's Club U.S. segment includes the warehouse membership clubs in the U.S., as well as samsclub.com and omni-channel initiatives.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Walmart Investors Should Exercise Caution Ahead of Earnings Report
- Strong Stock Performance: Walmart's stock has surged approximately 20% year-to-date, reaching a split-adjusted all-time high, and has gained nearly 29% over the past 12 months, reflecting robust market performance and investor confidence.
- Analyst Upgrades: Several analysts have raised Walmart's price targets, with Oppenheimer expecting fourth-quarter holiday sales to come in at the high end of Walmart's projected growth range, further boosting the stock price.
- Market Share Expansion: Walmart has successfully attracted higher-income shoppers by enhancing online and in-store pickup services, modernizing stores, and broadening brand selections, thereby increasing its competitive edge and encroaching on rival Target's market share.
- Valuation Risks Emerge: Despite Walmart reaching a $1 trillion market cap, making it the 12th company to do so, its price-to-earnings ratio stands at 45, indicating potential overvaluation, prompting investors to carefully consider their buying timing.
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- Booking Holdings Growth Outlook: Booking Holdings anticipates a 17% revenue increase this quarter, marking its strongest growth in two years, and despite a 23% decline in stock price year-to-date, a solid earnings report could attract investor interest.
- Walmart's Market Position: Walmart has recently joined the trillion-dollar market cap club, with a 20% stock price increase this year, and while its revenue growth has never exceeded 7%, its stable performance and $703 billion revenue make it a safe haven amid economic uncertainty.
- Earnings Release Schedule: Palo Alto is set to release its earnings report after market close on Tuesday, followed by Booking and Walmart on Wednesday and Thursday respectively, with the market closely monitoring these companies' financial results to assess future growth potential.
See More
Overview of U.S. Markets Closure on Presidents' Day
- Market Closure: The New York Stock Exchange and Nasdaq are closed today in observance of Presidents' Day, with U.S. bond markets also fully shut down, indicating the holiday's direct impact on financial operations, with trading resuming on February 17.
- Banking Services: Most commercial banks, including JPMorgan Chase, Bank of America, and Capital One, are closed today following the Federal Reserve's holiday schedule, although online banking and ATM services remain operational, with transactions likely delayed until the next business day.
- Postal Service Suspension: The U.S. Postal Service has suspended regular mail delivery and closed all retail post office locations today, while private carriers continue to operate, highlighting the operational differences in public services during holidays.
- Retail Promotions: Many department stores are leveraging Presidents' Day for significant sales, particularly in furniture and appliances, aiming to attract consumers and boost sales, reflecting retailers' strategic approaches during holiday periods.
See More
Amazon: The Smartest Growth Stock to Buy Now
- Attractive Valuation: Amazon's stock is currently trading at about 26.5 times the 2026 expected P/E ratio, significantly lower than valuations of traditional retailers like Walmart and Costco, making it one of the cheapest investment opportunities in its history and attracting investor interest.
- Operational Efficiency Gains: With over 1 million robots deployed in its distribution centers and coordinated by the DeepFleet AI model, Amazon has not only increased delivery speed but also significantly enhanced operational efficiency, driving sales growth.
- Advertising Revenue Surge: Amazon's high-margin sponsored ad business saw a 22% revenue increase last quarter, becoming a key driver of its operating income growth and further solidifying its leading position in the global digital advertising space.
- Cloud Computing Market Leadership: Holding the number one market share in cloud computing, Amazon's revenue growth reached 24% in Q4, the highest in over three years, indicating its commitment to invest $200 billion in capital expenditures to meet the booming demand for AI infrastructure.
See More
Walmart Investors Should Exercise Caution Ahead of Earnings Report
- Strong Stock Performance: Walmart's stock has surged approximately 20% year-to-date, reaching an adjusted all-time high, and has gained nearly 29% over the past 12 months, indicating robust market performance that attracts investor interest.
- Analyst Optimism: Analysts at Oppenheimer expect Walmart's fourth-quarter holiday sales to come in at the high end of the projected growth range of 3.75% to 4.75%, reflecting market confidence in its sales performance, which could further boost the stock price.
- Market Share Expansion: Walmart has successfully attracted higher-income consumers through modernized stores and online pickup services, enhancing its position in the competitive retail market and encroaching on rival Target's market share.
- Valuation Risks Emerge: Despite Walmart reaching a $1 trillion market cap, its price-to-earnings ratio stands at 45, the highest since 2021, indicating that the stock may be overvalued, prompting investors to carefully consider their buying timing.
See More
Walmart Stock Soars to All-Time High
- Stock Surge: Walmart's stock has surged approximately 20% this year, reaching an all-time high and surpassing a $1 trillion market cap, making it the 12th company to achieve this milestone, indicating strong performance in the retail sector.
- Analyst Upgrades: Several analysts have raised Walmart's price targets, with Oppenheimer expecting fourth-quarter holiday sales to hit the high end of the projected growth range of 3.75% to 4.75%, reflecting market optimism about its sales outlook.
- Customer Base Expansion: Walmart has successfully attracted higher-income shoppers while maintaining its traditional budget-conscious clientele, enhancing its market competitiveness through modernized stores and online pickup services, thereby encroaching on rival Target's market share.
- Valuation Risks: Despite Walmart's strong performance, its price-to-earnings ratio has reached 45 times, the highest since 2021, prompting analysts to advise caution for investors considering purchases, as profit-taking may occur post-earnings report.
See More
Walmart Investors Should Exercise Caution Ahead of Earnings Report
- Strong Stock Performance: Walmart's stock has surged approximately 20% year-to-date, reaching a split-adjusted all-time high, and has gained nearly 29% over the past 12 months, reflecting robust market performance and investor confidence.
- Analyst Upgrades: Several analysts have raised Walmart's price targets, with Oppenheimer expecting fourth-quarter holiday sales to come in at the high end of Walmart's projected growth range, further boosting the stock price.
- Market Share Expansion: Walmart has successfully attracted higher-income shoppers by enhancing online and in-store pickup services, modernizing stores, and broadening brand selections, thereby increasing its competitive edge and encroaching on rival Target's market share.
- Valuation Risks Emerge: Despite Walmart reaching a $1 trillion market cap, making it the 12th company to do so, its price-to-earnings ratio stands at 45, indicating potential overvaluation, prompting investors to carefully consider their buying timing.
See More
Earnings Season Approaches: Three Stocks to Watch
- Palo Alto Networks Performance: Palo Alto Networks has maintained year-over-year revenue growth between 12% and 19% for eight consecutive quarters, with expectations for a 14% to 15% increase this quarter, indicating strong demand and profitability in the cybersecurity sector.
- Booking Holdings Growth Outlook: Booking Holdings anticipates a 17% revenue increase this quarter, marking its strongest growth in two years, and despite a 23% decline in stock price year-to-date, a solid earnings report could attract investor interest.
- Walmart's Market Position: Walmart has recently joined the trillion-dollar market cap club, with a 20% stock price increase this year, and while its revenue growth has never exceeded 7%, its stable performance and $703 billion revenue make it a safe haven amid economic uncertainty.
- Earnings Release Schedule: Palo Alto is set to release its earnings report after market close on Tuesday, followed by Booking and Walmart on Wednesday and Thursday respectively, with the market closely monitoring these companies' financial results to assess future growth potential.
See More
Overview of U.S. Markets Closure on Presidents' Day
- Market Closure: The New York Stock Exchange and Nasdaq are closed today in observance of Presidents' Day, with U.S. bond markets also fully shut down, indicating the holiday's direct impact on financial operations, with trading resuming on February 17.
- Banking Services: Most commercial banks, including JPMorgan Chase, Bank of America, and Capital One, are closed today following the Federal Reserve's holiday schedule, although online banking and ATM services remain operational, with transactions likely delayed until the next business day.
- Postal Service Suspension: The U.S. Postal Service has suspended regular mail delivery and closed all retail post office locations today, while private carriers continue to operate, highlighting the operational differences in public services during holidays.
- Retail Promotions: Many department stores are leveraging Presidents' Day for significant sales, particularly in furniture and appliances, aiming to attract consumers and boost sales, reflecting retailers' strategic approaches during holiday periods.
See More
Amazon: The Smartest Growth Stock to Buy Now
- Attractive Valuation: Amazon's stock is currently trading at about 26.5 times the 2026 expected P/E ratio, significantly lower than valuations of traditional retailers like Walmart and Costco, making it one of the cheapest investment opportunities in its history and attracting investor interest.
- Operational Efficiency Gains: With over 1 million robots deployed in its distribution centers and coordinated by the DeepFleet AI model, Amazon has not only increased delivery speed but also significantly enhanced operational efficiency, driving sales growth.
- Advertising Revenue Surge: Amazon's high-margin sponsored ad business saw a 22% revenue increase last quarter, becoming a key driver of its operating income growth and further solidifying its leading position in the global digital advertising space.
- Cloud Computing Market Leadership: Holding the number one market share in cloud computing, Amazon's revenue growth reached 24% in Q4, the highest in over three years, indicating its commitment to invest $200 billion in capital expenditures to meet the booming demand for AI infrastructure.
See More
Walmart Investors Should Exercise Caution Ahead of Earnings Report
- Strong Stock Performance: Walmart's stock has surged approximately 20% year-to-date, reaching an adjusted all-time high, and has gained nearly 29% over the past 12 months, indicating robust market performance that attracts investor interest.
- Analyst Optimism: Analysts at Oppenheimer expect Walmart's fourth-quarter holiday sales to come in at the high end of the projected growth range of 3.75% to 4.75%, reflecting market confidence in its sales performance, which could further boost the stock price.
- Market Share Expansion: Walmart has successfully attracted higher-income consumers through modernized stores and online pickup services, enhancing its position in the competitive retail market and encroaching on rival Target's market share.
- Valuation Risks Emerge: Despite Walmart reaching a $1 trillion market cap, its price-to-earnings ratio stands at 45, the highest since 2021, indicating that the stock may be overvalued, prompting investors to carefully consider their buying timing.
See More
Walmart Stock Soars to All-Time High
- Stock Surge: Walmart's stock has surged approximately 20% this year, reaching an all-time high and surpassing a $1 trillion market cap, making it the 12th company to achieve this milestone, indicating strong performance in the retail sector.
- Analyst Upgrades: Several analysts have raised Walmart's price targets, with Oppenheimer expecting fourth-quarter holiday sales to hit the high end of the projected growth range of 3.75% to 4.75%, reflecting market optimism about its sales outlook.
- Customer Base Expansion: Walmart has successfully attracted higher-income shoppers while maintaining its traditional budget-conscious clientele, enhancing its market competitiveness through modernized stores and online pickup services, thereby encroaching on rival Target's market share.
- Valuation Risks: Despite Walmart's strong performance, its price-to-earnings ratio has reached 45 times, the highest since 2021, prompting analysts to advise caution for investors considering purchases, as profit-taking may occur post-earnings report.
See More
