NEW YORK (TheStreet) -- Walmart (WMT) - Get Report stock is increasing by 0.42% to $63.93 in mid-morning trading on Tuesday, after the company announced it will expand a service that allows customers to pick up their online grocery orders from store parking lots.
Customers can place the order online and select a time for pickup, while personal shoppers gather the products and deliver them to the customer's cars.
The company ran successful tests before deciding to expand the free pick up service this month, COO Michael Bender said in a blog post today.
Walmart will offer the online grocery pickup at select stores in Atlanta; Charlotte and Fayetteville, N.C.; Salt Lake City; Ogden, Utah; Nashville, Tenn.; Tucson, Ariz.; and Colorado Springs, Colo.
The company plans to expand the service to more markets in the next few weeks, Bender added.
Separately, TheStreet Ratings team rates WAL-MART STORES INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
We rate WAL-MART STORES INC (WMT) a HOLD. The primary factors that have impacted our rating are mixed — some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. 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 deteriorating net income, a generally disappointing performance in the stock itself and weak operating cash flow.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- WMT's revenue growth has slightly outpaced the industry average of 4.4%. 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.
- Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, WMT has underperformed the S&P 500 Index, declining 17.19% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and 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 analysis from the report here: WMT