Rick Pendergraft's Avatar
Rick Pendergraft
published in Blogs
Nov 16, 2020
Target and Walmart Head in to Earnings Reports Undervalued

Target and Walmart Head in to Earnings Reports Undervalued

I have written about the retail sector on several occasions over the last six months. I have made observations about how companies with stand-alone stores have performed better than companies where the majority of stores are in shopping centers. I have also pointed out how the companies that had an online presence before the pandemic have fared better. Two companies that fit both of those criteria are Target (TGT) and Walmart (WMT).

Both companies are set to report earnings this week with Walmart reporting on Tuesday and Target reporting on Wednesday. Analysts expect both companies to see earnings growth, but Target’s earnings are expected to grow more. In the third quarter of 2019 Target earned $1.36 per share and the consensus estimate for Q3 2020 is EPS of $1.60. That would mark an increase of 17.6%. Revenue is expected to grow by 12.1% for the quarter.

Walmart’s earnings are expected to come in at $1.18 for Q3 after coming in at $1.16 in the third quarter of last year. Revenue is expected to come in 3.3% higher.

If we look at Tickeron’s screener, both companies are pretty highly rated. Walmart is rated as a “strong buy” and Target is rated as a “buy”. On the fundamental side, Walmart has three positive signals and one negative signal while Target has two positive signals and no negative signals. The two areas where both stocks score well are in the Valuation Rating and the Profit vs. Risk Rating. Both stocks are considered undervalued at this time and both of the Profit vs. Risk Ratings are below 10 and that puts them in the top 10th percentile.

On the technical side, Target has six bullish signals and not a single bearish signal. Walmart has three bullish signals and no bearish signals.

Looking at the sentiment indicators for each stock, Target has a little more skepticism directed at it than Walmart does. There are 28 analysts following Target with 18 “buy” ratings, eight “hold” ratings, and two “sell” ratings. That gives us a buy percentage of 64.3% and that is slightly below average.

Walmart has 34 analysts following it with 26 “buy” ratings, six “hold” ratings, and two “sell” ratings. That gives us a buy percentage of 76.5% and that is slightly higher than average.

The short interest ratios for both companies are below average with Target’s at 2.4 and Walmart’s at 1.5. The average short interest ratio falls in the 3.0 range. What the buy percentages and the short interest ratios suggest is that there is slightly more optimism on Walmart ahead of the earnings reports. The optimism isn’t at an excessive level, but it could mean that expectations for the company are a little higher than they are for Target. If expectations are too high and can be difficult for the company to post numbers good enough to drive the stock higher.

The comprehensive head-to-head comparison shows how the two companies stack up against one another.

Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 07, 2021
4 Tricks Hedge Funds Use to Get Ahead

4 Tricks Hedge Funds Use to Get Ahead

If the stock market were Major League Baseball, hedge funds and institutional investors would be the pros on championship teams while everyday self-directed investors (SDIs) are the benchwarmers in the minors.It’s how they get ahead, and it’s why 90% of SDIs lose money trying to play (invest and trade) in the major leagues. The 4 tricks we discuss below are rooted in one common theme: they all use Artificial Intelligence and algorithms to generate data and ideas.
John Jacques's Avatar
John Jacques
published in Blogs
Mar 22, 2018
A.I. Stock Market Predictions: Head & Shoulders

A.I. Stock Market Predictions: Head & Shoulders

Statistics for the Head-and-Shoulders Bottom Pattern The days where only hedge funds used algorithms to trade stocks are officially over. Now retail investors can use Artificial Intelligence (A.I.  Here’s an example of the algorithm in action: Late last year, Tickeron’s A.I.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Jul 10, 2020
3 Stocks to Buy if Coronavirus Second Wave Hits

3 Stocks to Buy if Coronavirus Second Wave Hits

By analyzing market trends from the first wave, you can predict behavior for the second. Technology stocks have performed at historic levels this year, but the market is severely overbought.To compensate for that, look at performance during Q1 and Q2, the height of global Covid shutdowns.
Edward Flores's Avatar
Edward Flores
published in Blogs
Feb 06, 2021
How to Become the Millionaire Next Door

How to Become the Millionaire Next Door

The Golden Gate Bridge is always a fixture of these walks too, one of man's most beautiful creations.  As we were walking, at one point she turned to me and said, "Man, I'll never have a million dollars."" My girlfriend is 27 years old and works as a graphic designer, making about $75,000 a year.
Alla Petriaieva's Avatar
Alla Petriaieva
published in Blogs
Feb 23, 2021
Is Ethereum’s Bomb about to Explode?

Is Ethereum’s Bomb about to Explode?

Ethereum’s software is set for an update in October.Until it is finished, participants in the Ethereum blockchain must determine how to delay the difficulty bomb – code that necessitates a steadily increasing amount of computer power to mine blocks and unlock rewards – that is already in place.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Aug 07, 2018
When Is the Next Recession Coming?

When Is the Next Recession Coming?

However, we also know that economists predicted 22 recessions out of 11 that took place since 1945. Are there real recession signs we should watch for?Indeed, the answer is yes, and here are a few very important ones: The first one is almost obvious and known to everyone – it is the Fed.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 22, 2020
Central banks have been buying $2.4 billion in assets every hour for the past two months

Central banks have been buying $2.4 billion in assets every hour for the past two months

Some $17.8 billion has been poured into  bond markets over the past week, the biggest move in more than three months.Around $3.5 billion has been invested into gold, the second largest on record. 
Rick Pendergraft's Avatar
Rick Pendergraft
published in Blogs
Feb 07, 2021
Mid-January Short Interest Report Shows 8 Stocks with Good Fundamentals and High Short Interest
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 10, 2021
How to Start Trading Penny Stocks

How to Start Trading Penny Stocks

Penny stocks have long been marginalized within the professional investment community, oftentimes being painted with a broad brush of simply being “too risky.” Leonardo DiCaprio’s depiction of the penny stock peddling conman, Jordan Belfort, in the Wolf of Wall Street certainly didn’t help.Here are four reasons to start trading them now. Reason #1: Let’s State the Obvious -- Penny Stocks are Cheap A single share of Apple Inc. costs over $350.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 08, 2020
US unemployment rate jumps to 14.7%, the highest in series history

US unemployment rate jumps to 14.7%, the highest in series history

The U.S. economy’s employment fell by -20.5 million in April. The coronavirus crisis led to unemployment rate soaring to 14.7% in the U.S, the highest rate in the Bureau of Labor Statistics-tracked series history that goes back to 1948. However, the figures were better compared to several economists'/analysts' forecasts of 22 million job losses and 16% unemployment rate.  Another unemployment measure that includes those who have stopped looking for work as well as those holding part-time jobs for economic reasons also touched an all-time high of 22.8%.