Uncategorized

DZC CAPITAL INVESTMENT OUTLOOK (12-11-2019)

EQ FUND

WALMART INC: BUY

Sector: Consumer Non-Cyclical          Industry: Food Retail & Distribution

Walmart Inc., formerly Wal-Mart Stores, Inc., is engaged in the operation of retail, wholesale and other units in various formats around the world. The Company offers an assortment of merchandise and services at everyday low prices (EDLP). The Company operates through three segments: Walmart U.S., Walmart International and Sam’s Club. The Walmart U.S. segment includes the Company’s mass merchant concept in the United States operating under the Walmart brands, as well as digital retail. The Walmart International segment consists of the Company’s operations outside of the United States, including various retail Websites. The Sam’s Club segment includes the warehouse membership clubs in the United States, as well as samsclub.com. The Company operates approximately 11,600 stores under 59 banners in 28 countries and e-commerce Websites in 11 countries.

Trading Statistics

Market Capitalization: 338.584 B

Shares Outstanding: 2.847B

Average Volume: 4.441M

Recommendation, why?

Walmart’s Q2 U.S. comparable store sales were up 7.3% on a two-year stack, which represented its strongest growth in over a decade. The firm’s U.S. e-commerce sales also soar 37%. WMT has purchased smaller digital-focused retailers and niche higher-end companies in recent years such as Jet.com and Bonobos. Walmart also owns roughly 80% of Flipkart, which is one of India’s largest e-commerce sites. WMT stock is up 50% over the last five years, against its industry’s 30% average. Shares of Walmart have also surged 70% in the last 36 months and nearly 30% in 2019—the Food/Drug-Retail/Wholesale Market is up 16%. WMT stock closed regular trading Monday at $119 per share on lower-than-average volume, just off its 52-week highs of $120.92. Walmart’s recent positive earnings revision activity helps it earn a (Buy) and the company looks strong heading into its quarterly financial release.

RAYTHEON CO. (RTN): BUY

Sector: Industrials       Industry: Aerospace & Defence

Raytheon Company is a technology company, which specializes in defence and other government markets. The Company develops integrated products, services and solutions in various markets, including sensing; effects; command, control, communications, computers, cyber and intelligence; mission support, and cybersecurity. The Company operates through five segments: Integrated Defense Systems (IDS); Intelligence, Information and Services (IIS); Missile Systems (MS); Space and Airborne Systems (SAS), and Forcepoint. The IDS segment develops and produces sensors and mission systems. The IIS segment provides a range of technical and professional services to intelligence, defence, federal and commercial customers. The MS segment is a developer, integrator and producer of missile and combat systems. The SAS segment is engaged in the design, development and manufacture of integrated sensor and communication systems for missions. The Forcepoint segment develops cybersecurity products.

Trading Statistics

Market Capitalization: 60.151B

Shares Outstanding: 278M

Average Volume: 1.546M

Recommendations, why?

In the climate of economic uncertainties due to trade war between the US and China, companies in the defence sectors are safe haven because they are not affected by it, Raytheon is the best in the sector to keep rallying, their recent quarter earnings which show the company keep on outperforming their analyst projections and their outlook keeps on being on the positive side.

DZC Capital Research Team

Author DZC Capital Research Team

More posts by DZC Capital Research Team

Leave a Reply

Subscribe To Our Unique Market Research and Update