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Action Alerts: News Bodes Well for Club's Cybersecurity, Retail Picks

The Action Alerts Plus team takes a look at the implications of some major news events for stocks that it likes.
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Important news has emerged for several stocks that count as favorites for’s Action Alerts Plus (AAP) team.

First, President Joe Biden warned this week that hackers connected with the Russian government could target U.S. organizations. FBI reports indicated at least 18 U.S. companies in sectors including defense and financial services are being scanned by potential hackers.

“That call to increase cybersecurity defenses is a positive catalyst for related businesses at Cisco  (CSCO) - Get Cisco Systems Inc. Report and Microsoft  (MSFT) - Get Microsoft Corporation Report, as well as NortonLifeLock  (NLOK) - Get NortonLifeLock Inc. Report,” said the AAP team.

ChargePoint and Walmart

Toyota Motor  (TM) - Get Toyota Motor Corporation Report announced plans to partner with ChargePoint  (CHPT) - Get ChargePoint Holdings Inc. Report to offer home and public electric vehicle charging solutions. The size of the potential revenue stream for ChargePoint hinges on Toyota customers electing to install ChargePoint solutions.

“Our comfort on that potential conversion will rise once we have a clearer understanding of potential incentives to be offered,” the AAP team said.

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The relationship could boost ChargePoint’s home EV charging market, which accounts for 10% of its business now, the team said.

Walmart  (WMT) - Get Walmart Inc. Report sued rival retailer BJ's Wholesale Club  (BJ) - Get BJ's Wholesale Club Holdings Inc. Report, accusing it of stealing technology that enables a popular self-checkout option in the Sam's Club mobile app.

The technology is Scan & Go, which lets Sam's Club customers ring up purchases on their smartphones while they walk the aisles. The tech thus enables them to avoid checkout lines.

Morningstar analyst Zain Akbari assigns Walmart a wide moat and puts fair value at $145. The stock recently traded at $142.57

“The firm remains on track to meet our long-term expectations for low-single-digit sales growth and mid-single-digit adjusted operating margins over the next decade, although we still suggest investors await a more attractive entry point,” Akbari wrote in a commentary last month.