Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, May 11, 2018

Article Excerpt

WALMART INC., $83.38, New York symbol WMT, is the world’s biggest retailer, with 11,703 outlets in 28 countries. The company has agreed to buy 77% of Flipkart Group. That privately held firm is a leading online retailer in India with annual sales of $4.5 billion. Walmart will pay $16 billion for its majority stake. To put that in context, the company’s market cap (the total value of all outstanding shares) is $246.2 billion. The purchase will reduce Walmart’s earnings in the fiscal year ending January 31, 2019, by $0.25 to $0.30 a share down to roughly $4.93 a share. Further investments in Flipkart’s operations will also reduce its profit for fiscal 2020 by $0.60 a share. However, the purchase will help Walmart profit as more people in India buy goods online. Flipkart’s expertise should also help the company improve the performance of its e-commerce operation in other countries. OUR RECOMMENDATION: Walmart is a buy. Walmart recent coverage Hotline for May 4, 2018 April 2018 issue INTERNATIONAL FLAVORS…