Wal-Mart Stores (WMT) Leads The Pack In Pre-Market Activity
Trade-Ideas LLC identified
(
) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Wal-Mart Stores as such a stock due to the following factors:
- WMT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $590.0 million.
- WMT traded 58,816 shares today in the pre-market hours as of 7:38 AM.
- WMT is up 2.7% today from Friday's close.
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More details on WMT:
Wal-Mart Stores, Inc. operates retail stores in various formats worldwide. The company operates through three segments: Walmart U.S., Walmart International, and Sam's Club. The stock currently has a dividend yield of 3.4%. WMT has a PE ratio of 12. Currently there are 2 analysts that rate Wal-Mart Stores a buy, 1 analyst rates it a sell, and 17 rate it a hold.
The average volume for Wal-Mart Stores has been 12.4 million shares per day over the past 30 days. Wal-Mart Stores has a market cap of $182.6 billion and is part of the services sector and retail industry. The stock has a beta of 0.46 and a short float of 2.3% with 3.65 days to cover. Shares are down 34.3% year-to-date as of the close of trading on Friday.
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Analysis:
rates Wal-Mart Stores as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and weak operating cash flow.
Highlights from the ratings report include:
- WMT's revenue growth has slightly outpaced the industry average of 3.5%. Since the same quarter one year prior, revenues slightly increased by 0.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.62, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.17 is very weak and demonstrates a lack of ability to pay short-term obligations.
- Looking at the price performance of WMT's shares over the past 12 months, there is not much good news to report: the stock is down 28.10%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- The change in net income from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Food & Staples Retailing industry average. The net income has decreased by 15.1% when compared to the same quarter one year ago, dropping from $4,093.00 million to $3,475.00 million.
- You can view the full Wal-Mart Stores Ratings Report.
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