This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below.
|Zacks Rank||Definition||Annualized Return|
Zacks Rank Education - Learn more about the Zacks Rank
Zacks Rank Home - All Zacks Rank resources in one place
Zacks Premium - The only way to get access to the Zacks Rank
This page is temporarily not available. Please check later as it should be available shortly. If you have any questions, please email customer support at firstname.lastname@example.org or call 800-767-3771 ext. 9339.
Retail giant Wal-Mart Stores Inc. (WMT - Analyst Report) is re-considering possibilities to acquire the Brazilian unit of French retailer Carrefour SA in order to expand its presence in Latin America. The unit is worth approximately 7 billion euros ($9.9 billion), as per the sources.
Walmart has been eyeing Carrefour’s Brazilian assets for the last two years, but has failed to acquire it owing to price disagreement. Walmart’s interest in Carrefour came recently after the latter dumped the proposed plan to combine its business with Cia. Brasileira de Distribuicao Grupo Pao de Acucar (CBD - Analyst Report).
Since Walmart’s acquisition plans are premature, the company is working with advisers to examine the assets of Carrefour, which could be valued between $6 billion and $8 billion.
We remain encouraged by the company’s significant presence in the international market, as it gets about one-quarter of its revenue from its international operations and the rest from the U.S. Additionally, Walmart’s sales increased 4.4% in the first quarter, driven by a robust 11.5% growth in the International segment.
During May 2011, Walmart planned to invest 1.2 billion reais ($740 million) and open 80 new stores in Brazil in 2011, and hire about 7,000 people.
Walmart is scheduled to report its second-quarter earnings on August 16, 2011 and the Zacks Consensus Estimate is $1.08 per share.
Currently, Walmart faces stiff competition from Target Corp. (TGT - Analyst Report) and Costco Wholesale Corporation (COST - Analyst Report). It has a Zacks #3 Rank, implying a short-term Hold recommendation.
Please login to Zacks.com or register to post a comment.