Walmart Inc (WMT)

It is one of a handful of superstars that have weathered the storm of AMZN-Q. They are now playing some offense. For the size, they have done a great job of being nimble. Their acquisition has done very well. Same store sales are up. They have strong numbers overall. They are going to remodel their stores and this CAP-X could impair their ability to raise dividends. The tariffs have impeded their sales. Their margins may be squeezed by tariffs. He is not there because of the CAP-X spending planned. The valuation is attractive and there is support at the current price.

The street loved this stock today with the best earnings reported in about 9 years. The fundamentals are still good for this stock. They dominate groceries in the US. However, Amazon may pose somewhat of a risk. He thinks there is room to go up a little more.

This is a good defensive stock and has good valuations. Their earnings may be impacted by some of their reinvestment plans. The US GDP numbers are still strong. The battle continues with Amazon. At this level it is fairly valued.

(Past Top Pick, July 17, 2017, Up 5%) He sold a $77.50 call at $2.50 last December when Walmart was over $90, so he got called away at $77.50. He made a 5% return over 5 months.

This company is competing against the likes of Amazon and is losing the battle. The growth in incremental sales will likely go to Amazon, especially in online sales.

(Past Top Pick, May 10, 2018, Up 5%) He liked their whole India play, though investors didn't at first. It's come off in the past year, but sees plenty of upside. Good to continue to own it and a great long-term play that will hit $100. But yes, Amazon is probably a threat to Walmart in North America e-commerce, though not India.

They've corrected the past few weeks. Their earnings aren't that bad nor was their e-commerce performance. It's a defensive and value stock, and undervalued by $10-20. But it faces transportation costs which eat into profits.

He thinks this chart looks weak right now. The move below a gap up back in November is worrisome. He would not be buying right now. He sees support around $79 with resistance at $87.