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Morning Alert: Wal-Mart Stores increases 1.3%, leads Broadline retailers sector higher 18 January 2018 11:53 EST

NEWS BITES - NORTH AMERICA

Wal-Mart Stores, Inc. (NYSE:WMT) has increased 1.3% to trade at $US104.0 vs. the Broadline retailers sector which strengthened 19.7 points (or 1.1%) to 1,846.0. Representing a weighting of about 85.2% of the sector, the stock accounted for 99.9% of today's gain. The shares have outperformed 91% of the market in the past week. Trading volume was 1.2 times average so far today.

SECTION 1: The past week

Current indications of bullish signals that support the trend in the unusual trading

1.1 At a glance

Weekly: Wal-Mart Stores accelerates rise: up 3.3% in 2 weeks January 17, 2018 16:00 EST

Wal-Mart Stores, Inc. (NYSE:WMT), the NYSE's largest Broadline Retailer company by market cap, has increased $US3.25 (or 3.3%) over the past two weeks, after rising 3% in the past week and 0.2% in the week prior to that to close at $US102.70. Compared with the S&P 500 Index which rose 89.5 points (or 3.3%) in the two weeks, this represented a relative price change of -0.03%. The volume was 0.8 times average trading per week of 35.6 million shares. In the past week the market cap has risen $US9 billion.

1.2 5-day Recap

Wal-Mart Stores outperformed the S&P 500 index in 3 out of 4 days.

DayHeadlineClose price [USD]Price change %Relative change %Comment
WednesdayWal-Mart Stores hits year-high 6th time in one month102.72.01.1Top Rise
FridayWal-Mart Stores rises with rising open interest100.870.80.2
ThursdayWal-Mart Stores put call ratio decreases 11.1%, stock increases100.020.4-0.3

Note

DayHeadlineClose price [USD]Price change %Relative change %Comment
TuesdayWal-Mart Stores decreases100.69-0.20.2Steepest Fall

SECTION 2: Technical indicators

Bullish:

The positive 1.59 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal (12-day minus 26-day Exponential Moving Averages). Both the 12-day and the 26-day EMA are rising - another bullish signal. In the past week, the stock's MACD has been positive in four days, a reinforcing bullish signal.

In the last one month the stock has hit a new 52-week high seven times and in the last three months eighteen times, pointing to a significant uptrend.

The price lifted 4.0% in the last week and jumped 6.2% in the last month.

The present value of USD1,000 invested one year ago is $US1,595 [vs $US1,232 for the S&P 500 Index], including a capital gain of $US555 and dividend reinvested of $US40. The total return to shareholders for 1 year is 59.5%.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Parity:

Price/Sales of 0.6 [0.6]

Price to Book of 5.1 [4.9]

Return on Capital Employed 15.5% [14.9%]

Undervaluation:

Return on Equity 17.5% [15.4%]

Return on Assets 7.2% [5.5%]

Overvaluation:

Price/Earnings of 27.6 [24.4]

Dividend yield of 2% [2.2%]

Note

Overbought/Bearish:

The 0.9% discount to 12-month high of $US104.94 against the 62.2% premium to 12-month low of $US64.10 suggests the climb might be peaking.

SECTION 3: Ranking

DescriptionValueRank In Market
MCap $US billion308.1In Top 1%
Price/MAP2001.26In Top Quartile
52-week Range (in $US)64.1-104.9
1-month Range (in $US)97.4-104.9
RSI72.4Bearish
Bollinger Bands1.2Bearish

SECTION 4: Earnings

FY2017 Annual Report: Wal-Mart Stores keeps sliding: EPS down 13.3% in 2 years

Wal-Mart Stores (NYSE:WMT), announced EPS of $US4.38 for the year-ended 31 January 2017, down 4.2% from $US4.57 in the previous year. In the last two years EPS has declined by 13.3%.

Major changes compared with previous year:

Favourable Changes:

- Total Liabilities to Operating Cash Flow of 3.8 compares favourably with the Joseph Piotroski benchmark of less than 4. This ratio has improved by 11.3% from the previous year's ratio of 4.2.

Unfavourable Changes:

- Net profit down 7.2% from $US14.7b to $US13.6b

- EPS down 4.2% from $US4.57 to $US4.38

- EBIT Margin down from 4.5% to 4.3%

- EBIT to total assets down from 10.8% to 10.3%

- Administration expenses to Sales up from 20.3% to 21.2%

- Profit before tax to Sales down from 4.5% to 4.3%

- Total current assets to Total Assets down from 30.2% to 29%

- Total Liabilities to EBITDA of 5.8 compares unfavourably with the Joseph Piotroski benchmark of less than 5. This ratio has deteriorated by 7.6% from the previous year's ratio of 5.4.

Note:

- Total revenue steady at $US485.9b

- Total revenue to total assets steady at 2.4

- Cost of Goods Sold to Sales down from 75.4% to 75.1%

- Tax expenses to Sales down from 1.4% to 1.3%

- Debt to Equity steady at 0.6

- Total liabilities to Total assets steady at 0.6

- Current ratio steady at 0.9

- Retained earnings to total assets steady at 44.9%

- Total non-current assets to Total Assets up from 69.8% to 71%

- Fixed Assets to Total Assets down from 55.2% to 54.2%

- Current Inventory to Total Assets down from 22.3% to 21.7%

- Intangibles to Total Assets up from 8.4% to 8.6%

- Net tangible assets per share steady at $US19.52

SECTION 5: Recent News of Wal-Mart Stores

January 17: Judith McKenna Named President and CEO of Walmart International

BENTONVILLE, Ark.---- Wal-Mart Stores Inc. (NYSE:WMT) announced today that Judith McKenna will be promoted to President and Chief Executive Officer (CEO) of Walmart International, the company's second-largest operating segment. She will be succeeding David Cheesewright, who has been in role since 2014 and recently shared his desire to retire from a full-time role.

This press release features multimedia.

January 16: H&R Block enters exclusive partnership with Walmart

KANSAS CITY, Mo., Jan. 16, 2018 -- H&R Block (NYSE:HRB) and Walmart (NYSE:WMT) announced Jan. 16 that H&R Block will be the new, exclusive DIY desktop tax software provider available at Walmart stores nationwide, and sold directly by Walmart on walmart.com. This exclusive retail partnership brings the value, innovation and support of H&R Block DIY desktop software products to the world's largest retailer, making the DIY products even more convenient for clients to purchase, and ultimately prepare their taxes and get their maximum tax refund.

"At H&R Block, we give our clients the flexibility to prepare their taxes however they want, which includes offering them the products they want where they shop," said Heather Watts, senior vice president and general manager of digital at H&R Block.

January 16: Walmart Continues Retail Energy Efficiency Leadership with 1.5 Million LED Fixtures Now Installed Across Global Fleet of Stores, Clubs, Offices and Distribution Centers

Current by GE Has Reduced the Retailer's Costs by More Than $100 Million Dollars in Energy Savings

NEW YORK---- Walmart (NYSE:WMT), the world's largest retailer, announced results of an extensive lighting program with Current, powered by GE (NYSE:GE) at the National Retail Federation's Big Show. As part of an ongoing commitment to energy efficiency, Walmart has now installed more than 1.5 million LED (light emitting diode) fixtures across more than 6,000 stores, parking lots, distribution centers and corporate offices in ten countries.

This press release features multimedia.

January 11: Sam's Club Shares Changes to Club Fleet

Sam's Club Shares Changes to Club Fleet 63 Facilities Impacted, Up to 12 to Convert to eCommerce Facilities

BENTONVILLE, Ark.---- Sam's Club, a division of Wal-Mart Stores, Inc. (NYSE:WMT) today announced changes to the business unit's U.S. real estate portfolio, with the closure of 63 clubs around the country.

January 11: Technical Perspectives on Discount, Variety Stores Stocks -- Fred's, Wal-Mart Stores, Ollie's Bargain Outlet, and Dollar General

NEW YORK, Jan. 11, 2018 -- WallStEquities.com strives to bring the best free research to the investment community. Today we are offering reports on FRED, WMT, OLLI, and DG which can be accessed for free by signing up to www.wallstequities.com/registration. Today, WallStEquities.com covers the Discount Variety Stores space, which comprises stores that are like department stores as far as total size, layout, and products go, but provide similar products at lower costs.

Wal-Mart Stores, Inc. (N:WMT)

ISIN: US9311421039

PermID: 4295905298

CIK: 104169

CUSIP: 931142103

Source: www.BuySellSignals.com