Today’s Research Reports on Stocks to Watch: Walmart and Sears Holdings
NEW YORK, NY / ACCESSWIRE / May 10, 2018 / Walmart and Sears both had big announcements on Wednesday. While Walmart shares sank on the news of it buying a 77% stake in India's Flipkart, shares of Sears were exploding after traders learned the company had struck a deal with Amazon where Amazon customers can have their tire purchases installed at select Sears Auto Centers.
RDI Initiates Coverage on:
Walmart Inc.
https://www.rdinvesting.com/report/?ticker=WMT
Sears Holdings Corporation
https://www.rdinvesting.com/report/?ticker=SHLD
Walmart Inc. shares were deep in the red in Wednesday's trading session after the company announced its long awaited deal with India's e-commerce company Flipkart. Shares closed down 3.13% on about 32 million shares traded. Despite the loss, it was an exciting day for Walmart who has been trying to break into India for over a decade. Morgan Stanley has valued the e-commerce market that Walmart just gained access to at around $200 billion a year, within ten years. Walmart has paid $16 billion for around a 77 percent stake in FlipKart as it continues to compete with Amazon. According to reports, Amazon had also had a bid for the company. Walmart said it is expecting the deal to reduce its fiscal 2019 earnings by 25 to 30 cents a share and its fiscal 2020 earnings to 60 cents a share. According to McMillan Doolittle senior partner, Neil Stern, "It is not so much about succeeding in India for Walmart because that may or may not happen. It is really about grabbing an opportunity after waiting on the sidelines in a growth market for over a decade," he said. Traders may have been concerned over the EPS loss that Walmart has guided as well as the risk of the investment. According to Steven Roorda of Stonebridge Capital Advisors, "Walmart has a very poor track record operating outside North America. We will not know for five to 10 years whether this transaction is successful strategically or financially."
Access RDI's Walmart Inc. Research Report at:
https://www.rdinvesting.com/report/?ticker=WMT
Sears Holdings Corporation shares closed up nearly 16% on Wednesday after it was announced that Sears and Amazon have a tire deal. The struggling retailer saw its shares pop after it was announcing that Amazon customers can now have ship any tire to Sears Auto Center to be installed. Only 47 Sears Auto Centers in eight metropolitan cities are so far offering the service but Sears plans to roll out the service across the U.S. to all Auto Center locations in the future. Sears also announced that it will market its DieHard brand tires on Amazon for the first time. Unfortunately the company's auto centers are a small portion of its business, so this may not impact the company's financial results significantly. CEO Eddie Lampert remarked at the company's annual shareholder's meeting, "Let me be the first one to acknowledge we are on the right path but we haven't gotten over the hump. We need to convert our vision into reality, [which has been] made much more difficult because the operating performance isn't where it needs to be."
Access RDI's Sears Holdings Corporation Research Report at:
https://www.rdinvesting.com/report/?ticker=SHLD
Our Actionable Research on Walmart Inc. (NYSE: WMT) and Sears Holdings Corporation (NASDAQ: SHLD) can be downloaded free of charge at Research Driven Investing.
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