Shares of Wal-Mart (WMT - Free Report) climbed 1.5% in morning trading on Friday after Goldman Sachs (GS - Free Report) upgraded the company from “neutral” to “buy.” Goldman Sachs raised the company’s target price from $78 to $84 and added Wal-Mart to its Conviction List.
Wal-Mart is “as well positioned as any mass market retailer—in an admittedly imperfect world for mass market retailers,” Goldman Sachs wrote in a note to clients on Friday.
“[Wal-Mart] has seen the world quite clearly,” Goldman said. “Tactically, [Wal-Mart] has improved in-store execution visibly, tightened inventory, and kept pace with over U.S. retail [comparable-sales] momentum after years of lagging behind.”
This news comes after retailers and supermarket stocks have taken a hit from Amazon.com’s (AMZN - Free Report) announcement last month that it will acquire Whole Foods for $13.7 billion. Shares of Wal-Mart have fallen more than 6% since the deal was announced.
Goldman Sachs believes that Wal-Mart can complete successfully in the face of Amazon’s growth. Analyst Matthew Fassler said that Wal-Mart is prepared to “simultaneously sidestep the [Amazon] juggernaut” with the increasing demands of e-commerce and technology spending.
Earlier this week, Wal-Mart announced that it will launch the “On-time, In Full” program in August to fine suppliers for deliveries that arrive late, early, or improperly packaged. The retail giant expects this program to add $1 billion to revenue by improving product availability.
WMT remains a Zacks Rank #2 (Buy), with a VGM score of ‘A.’ Wal-Mart will need to continuously innovate its strategies to keep pace with Amazon, but our consensus estimates show that there will be positive year-over-year growth for the current year. The company is set to report its next quarterly earnings on August 17 before the bell.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Shares of Wal-Mart (WMT - Free Report) climbed 1.5% in morning trading on Friday after Goldman Sachs (GS - Free Report) upgraded the company from “neutral” to “buy.” Goldman Sachs raised the company’s target price from $78 to $84 and added Wal-Mart to its Conviction List.
Wal-Mart is “as well positioned as any mass market retailer—in an admittedly imperfect world for mass market retailers,” Goldman Sachs wrote in a note to clients on Friday.
“[Wal-Mart] has seen the world quite clearly,” Goldman said. “Tactically, [Wal-Mart] has improved in-store execution visibly, tightened inventory, and kept pace with over U.S. retail [comparable-sales] momentum after years of lagging behind.”
This news comes after retailers and supermarket stocks have taken a hit from Amazon.com’s (AMZN - Free Report) announcement last month that it will acquire Whole Foods for $13.7 billion. Shares of Wal-Mart have fallen more than 6% since the deal was announced.
Goldman Sachs believes that Wal-Mart can complete successfully in the face of Amazon’s growth. Analyst Matthew Fassler said that Wal-Mart is prepared to “simultaneously sidestep the [Amazon] juggernaut” with the increasing demands of e-commerce and technology spending.
Earlier this week, Wal-Mart announced that it will launch the “On-time, In Full” program in August to fine suppliers for deliveries that arrive late, early, or improperly packaged. The retail giant expects this program to add $1 billion to revenue by improving product availability.
WMT remains a Zacks Rank #2 (Buy), with a VGM score of ‘A.’ Wal-Mart will need to continuously innovate its strategies to keep pace with Amazon, but our consensus estimates show that there will be positive year-over-year growth for the current year. The company is set to report its next quarterly earnings on August 17 before the bell.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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