Category: Accessories

Walmart Earnings Preview

Doug McMillon has done a great job focusing on Walmart on the e-commerce threat and opportunity, but over the long run – regardless of how fiscal 2020 or the next few years turn out – Walmart is basically running to try and stand still.

Tuesday morning, February 18th, 2020, before the opening bell, Walmart is expected to report Q4 ’20 financial results, with Street consensus expecting $1.48 in earnings per share on $142.5 billion in revenue, for expected year-over-year growth of 2% and 3%, respectively.

Walmart’s stock could be up 10% on Tuesday morning given the very strong US consumer and low gas prices.

However – at least today anyway – it still seems a substantial challenge for Walmart to grow revenue again mid-single-digits and fatten margins and to do it without losing out on price to Amazon and ecommerce.

Walmart's stock could be up 10% on Tuesday morning

INVESCO Ltd. ~ Global Investment Management

Invesco Ltd. engages as an independent global investment management firm. It operates through Investment Management segment. The firm offers a range of single-country, regional, and global capabilities across major equity, fixed income and alternative asset classes, delivered through a diverse set of investment vehicles. The company was founded in December 1935 and is headquartered in Atlanta, GA.

PFE ~ Pfizer Inc.

Pfizer (NYSE:PFE) is one of the most important pharmaceutical companies in the world by revenue, with leading products in different therapeutic areas. Its blockbuster products (Viagra, Lyrica, Lipitor) have driven sales for years representing exceptional cash cows products.

While divestiture of the Upjohn business unit to create a new company (Viatris) with Mylan has generated bearish sentiment on Pfizer, this analysis showed how divestitures, if followed by proper execution of strategy, could create higher value in the long term.

Furthermore, investors need to switch from thinking about the old Pfizer with revenues generated by old blockbuster drugs to a new smaller science-based Biopharma company with a focus on innovation.

Pfizer Shares Up 2.2%

Boosts Dividend to 38 Cents

By Michael Dabaie

Pfizer Inc. (PFE) shares were up 2.2% to $39.18 around midday.

The DJIA was recently up 0.6%.

The company before the market open boosted its dividend by 6% to 38 cents from 36 cents a share.

“The dividend increase is a testament to our commitment to returning capital to shareholders and reflects our continued confidence in the business and in our pipeline,” Chief Executive Albert Bourla said.

Pfizer also said it plans to host an investor day March 31 and will provide updates on the company’s progress in advancing its research and development pipeline, specifically on product candidates that are expected to launch by 2025.

Write to Michael Dabaie at michael.dabaie@wsj.com

Intel Corp (INTC)

There’s no getting around the fact that Advanced Micro Devices (NASDAQ:AMD) caught rival CPU maker Intel (NASDAQ:INTC) off guard back in 2016.

Largely left for dead, mired in its own irrelevancy, AMD’s CEO Lisa Su hit the ground running with a plan, when she took the helm back in 2014. A couple years later, AMD’s new Ryzen series of processors and impressive leaps with graphics processors and 7 nanometer technology put Intel on its heels.

AMD played a big role in creating the headwind that has held INTC stock since, and a string of uncovered security flaws in some of its older processors did the rest of the work.

No company becomes more innovative and effective than a company fighting to hold onto its leading position in its respective markets though, and Intel is (finally) doing that. Although its 7 nanometer CPUs have been put off until 2021, stop-gap technologies like its Ice Lake architecture are powerful enough compared to similarly priced options, while Intel gets back in the game.

The recent weakness in INTC stock is a chance to step into an underestimated company on the cheap. The trailing and forward-looking price-to-earnings ratios are both just over 11.

Twitter: The Bulls Must Hold Here

After a dismal participation in the bull market off of the 2016 lows for the S&P 500, Twitter has finally woken up and begun to outperform its peers.

The company continues to see a strong earnings trend, with nearly 100% earnings per share growth reported last year.

As long as the bulls can hold the $32.00 level on a weekly close, the bulls will remain in control.

While social media stocks like Facebook (FB), Weibo (WB) and SINA Corp. (SINA) saw powerful moves off of the 2016 market lows, Twitter (TWTR) got left in the dust after an already abysmal post-IPO performance. The good news for Twitter bulls is that since the December 2018 lows, it’s managed to reverse roles and is now leading the pack. The stock is in the top 10% of strongest stocks on the US market, has put up a healthy 30% return vs. the S&P 500’s (SPY) 12% return, and has handled the recent correction quite well. The new uptrend in Twitter, coupled with robust earnings per share growth for FY 2018, suggests that this move could be sustainable. However, the key will be the bulls playing defense where they have to. I have no position in the stock currently, but the stock for the first time has made it into my top 150 list.