NEW YORK (TheStreet) -- Walmart (WMT) - Get Report shares are down 0.4% to $76.28 in early market trading on Tuesday after the retailer announced that it will have the latest Activision Blizzard (ATVI) - Get ReportCall of Duty video game for sale one day before other video game retailers will.
'Call of Duty' is one of the industry's most successful video game franchises with the previous game boasting sales of over $1 billion in its first day of release last year.
The move marks the company's latest foray into the world of video games as the company started selling certified used games at select stores earlier this year before expandeding the program to 1,700 of its over 4,800 stores today.
Walmart, which already sells new video games, estimates the trade-in video game market to be about $2 billion, although that market is currently dominated by video game retailer GameStop (GME) - Get Report .
As part of the 'Call of Duty' promotion, shoppers will be able to purchase the game on November 3, a full day before other retailers will be selling it and will be given 50% extra store credit if they trade in their used games for a PS4 (SNE) - Get Report version of that video.
TheStreet Ratings team rates WAL-MART STORES INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate WAL-MART STORES INC (WMT) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, reasonable valuation levels, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- WMT's revenue growth has slightly outpaced the industry average of 2.8%. Since the same quarter one year prior, revenues slightly increased by 2.8%. 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 net income growth from the same quarter one year ago has exceeded that of the Food & Staples Retailing industry average, but is less than that of the S&P 500. The net income increased by 0.6% when compared to the same quarter one year prior, going from $4,069.00 million to $4,093.00 million.
- WAL-MART STORES INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, WAL-MART STORES INC reported lower earnings of $4.86 versus $5.01 in the prior year. This year, the market expects an improvement in earnings ($5.01 versus $4.86).
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Food & Staples Retailing industry and the overall market, WAL-MART STORES INC's return on equity exceeds that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: WMT Ratings Report