Walmart has disclosed plans to roll out one-day delivery services to customers in Phoenix, Las Vegas and Southern California with further expansion into 50 major metro cities accounting for 75% of its American customers by the end of 2019. The company hasn’t yet disclosed the cost of this delivery push.
The move is to compete with e-commerce rival Amazon, who has recently invested $800 million during the second quarter for one-day delivery service to Amazon Prime customers. Shares of Walmart plummeted after the announcement.
Since 2017, Walmart had already begun two-day delivery service on orders more than $35, lowering its minimum purchase threshold from $50. On the other hand, Amazon has no minimum threshold to qualify for one-day delivery. However, the service is available for only Prime customers who already pay $119 annually for their membership.
But Walmart has at least one advantage over Amazon - it has a network of thousands of stores across the country functioning as fulfilling centers. That is, the company offers a click-and-collect option by which customers, after placing an order online, can drive to one of these stores to pick up their orders on the same day.
Analysts believe that Walmart’s one-day delivery aspiration is realistic. It would cost the company a manageable $215 million in incremental investments. The company’s one-day delivery service already covers 72% of the U.S. population and ramping it up to 87% will not be difficult.
But retail analysts also believe that focusing on one-day delivery service, from a macro-economic perspective, is not sustainable. Rather, the company should focus on a buy-online-pick-up-in-store option, as it will help save shipping expenses by utilizing their real estate. Surveys reveal that 46% of online shoppers have used the option of pick-up-from-stores and Walmart purchases top the list.
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where AMZN advanced for three days, in of 334 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on March 19, 2024. You may want to consider a long position or call options on AMZN as a result. In of 77 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 284 cases where AMZN Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The 10-day RSI Indicator for AMZN moved out of overbought territory on March 04, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 43 similar instances where the indicator moved out of overbought territory. In of the 43 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 4 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Moving Average Convergence Divergence Histogram (MACD) for AMZN turned negative on March 05, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 46 similar instances when the indicator turned negative. In of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AMZN declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. AMZN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 92, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (9.268) is normal, around the industry mean (17.720). P/E Ratio (62.117) is within average values for comparable stocks, (71.108). Projected Growth (PEG Ratio) (2.436) is also within normal values, averaging (3.234). Dividend Yield (0.000) settles around the average of (0.030) among similar stocks. P/S Ratio (3.288) is also within normal values, averaging (4.178).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of on-line retail shopping services
Industry InternetRetail