Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. Trade-Ideas LLC identified Wal-Mart Stores ( WMT) as a pre-market laggard 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 $402.3 million.
- WMT traded 172,802 shares today in the pre-market hours as of 7:31 AM.
- WMT is down 3.1% today from yesterday's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in WMT with the Ticky from Trade-Ideas. See the FREE profile for WMT NOW at Trade-Ideas 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 2.4%. WMT has a PE ratio of 16.3. Currently there are 8 analysts that rate Wal-Mart Stores a buy, 1 analyst rates it a sell, and 9 rate it a hold. The average volume for Wal-Mart Stores has been 6.7 million shares per day over the past 30 days. Wal-Mart Stores has a market cap of $255.4 billion and is part of the services sector and retail industry. The stock has a beta of 0.36 and a short float of 2% with 6.01 days to cover. Shares are up 0.6% year-to-date as of the close of trading on Tuesday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Wal-Mart Stores as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, 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 ratings report include:
- WMT's revenue growth has slightly outpaced the industry average of 5.1%. Since the same quarter one year prior, revenues slightly increased by 1.5%. 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.
- Net operating cash flow has slightly increased to $9,937.00 million or 2.61% when compared to the same quarter last year. In addition, WAL-MART STORES INC has also modestly surpassed the industry average cash flow growth rate of -3.94%.
- WAL-MART STORES INC's earnings per share declined by 19.8% in the most recent quarter compared to the same quarter a year ago. 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 ($5.30 versus $4.86).
- In its most recent trading session, WMT has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- You can view the full Wal-Mart Stores Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.