One Reason Walmart Stores (WMT) Stock Is Lower Today

NEW YORK (TheStreet) -- Shares of Walmart Stores Inc. (WMT) are down by 1.95% to $85.83 at the start of trading on Monday, as data from the National Retail Federation showed a decline in total Black Friday weekend sales, the Los Angeles Times reports.

Shopping traffic from Thanksgiving Day through Sunday dropped by 5.2% to 133.7 million unique visitors, compared to 141.1 million for last year's holiday weekend, the Times added.

Analysts are attributing the decline in sales over the weekend to "earlier-than- ever bargains," as some retailers such as Walmart and Target (TGT) offered online holiday deals weeks before Thanksgiving, the Times said.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

"With the Internet open 24/7, that's taken some of the luster off of Black Friday. It's not make or break anymore," a Moody's Investor Service analyst told the Times.

Shares of Target are also down by 2.07% to $72.47 this morning.

Separately, TheStreet Ratings team rates WAL-MART STORES INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate WAL-MART STORES INC (WMT) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, increase in stock price during the past year, growth in earnings per share and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • WMT's revenue growth has slightly outpaced the industry average of 0.9%. Since the same quarter one year prior, revenues slightly increased by 2.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Net operating cash flow has significantly increased by 72.54% to $3,570.00 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 49.58%.
  • The stock price has risen over the past year, but, despite its earnings growth and some other positive factors, it has underperformed the S&P 500 so far. 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.
  • WAL-MART STORES INC reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in 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 ($5.00 versus $4.86).
  • You can view the full analysis from the report here: WMT 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.

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