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Wal-Mart Is Back & L Brands, Home of Victoria's Secret, Looks Appealing

Wal-Mart Is Back And Looking Cheap


  • This first quarter made Wall Street look foolish.
  • A stronger dollar could be a boon for WMT’s international expansion.
  • The “Henry Ford effect” could come into play with increasing wages.
  • A P/E of 15 and a yield of 3% - what’s not to like?

Wal-Mart crushed Wall Street's estimates for revenue and earnings to start off the new fiscal year.

Wal-Mart Stores (NYSE:WMT) put some worries to rest with its most recent earnings report, showing that this retail Goliath will not be slain easily by Amazon (NASDAQ:AMZN) or any of the relative retail Davids like Target (NYSE:TGT) that compete against it. In fact, most of those Davids are not reporting great results and have been hammered in the recent weeks on the back of slowing sales and not meeting expectations. WMT, however, blew away estimates and saw its stock pop 9% following the revenue and earnings beat. Amazingly, WMT did not only beat Wall Street's consensus estimates, it crushed them. Revenue was expected to come in at $113.2 billion; WMT booked another $2.7 billion on top of that reporting $115.9 billion in revenue - not a bad start to the new fiscal year. On the earnings front, WMT made Wall Street look foolish by generating $0.98 in EPS compared to the Street's consensus estimate of $0.88 - not a penny beat, a dime beat. Not bad... CONTINUE READING

L Brands: Ready, Set, Higher!


  • Technicals make the stock look terrible.
  • But solid fundamentals and a reasonable valuation make L Brands a buy.
  • I would not bet against Les Wexner.
  • Great long-term track record and great long-term prospects.

By Tony Termini

I think you should buy L Brands, Inc. (NYSE:LB) despite the short-term risk. That's because I think the risks have nothing to do with the company. They're all about the stock.

Here's the difference: In his book Point and Figure Charting, Tom Dorsey points out that the mechanism that drives stock prices higher or lower is the same one that moves the price of commodities, namely supply and demand. When demand is in control of price movement, Dorsey writes, you want to be in. When supply is in control, you want to be out... CONTINUE READING

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