NEW YORK (TheStreet) -- Walmart Stores (WMT) shares are up 0.23% to $86.42 on Tuesday as the world's largest retailer reported record online sales on the retail holiday known as Cyber Monday.
The Arkansas-based company said that customers viewed over 1.5 billion pages on Walmart.com over the Thanksgiving holiday weekend with most of that traffic coming from mobile devices. Walmart said that mobile traffic accounted for about 70% of the company's online traffic over the weekend.
Despite the strong page view and online sales numbers, online sales rose 8.1% over the previous year, according to IBM Digital Analytics, while analysts were expecting the company to report a sales increase in the 13% to 15% range.
In separate news, the company continued to trim its overseas operations, cutting 250 jobs from its China division, according to the Wall Street Journal. The move comes despite the company reporting a 24.7% increase in sales in the country over the previous year.
Walmart said that it plans to open an additional 110 stores in China over the next two years even though it was forced to close 15 over the past year.
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