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Two Ways To Play: Walmart's Earnings Misstep

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Strengthen your portfolio in good times and bad.

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Walmart Sales Miss Estimates

Walmart (WMT) reported results for its fiscal fourth quarter. The world's largest retailer said earnings came in at $1.17 a share, 5 cents better than Wall Street estimates. Revenues rose 4.5% year-over-year to $113.65 bln, below expectations of $114.36 bln. Guidance for the first quarter was inline; it estimates EPS in the range of $0.81-0.85 vs. $0.85 consensus. But US comps fell in Q4 and it reported declining gross margins of 24.9% compared to $25.76% last quarter. Shares are down over 2% in the premarket.

For more on analyzing retail companies, be sure to check out Kristin Graham's column, Why Abercrombie's Future Doesn't Look Pretty.

From the Bull Pen: Walmart pulling back towards $52.50 support might be a buying opportunity. Longer term investors might also be attracted to its 2% dividend. Also consider American Eagle (AEO) which has made a series of higher lows. Short term traders can set a tight sell stop below $15.50.

From the Bear Cave: The retail ETF (RTH) is nearing massive resistance near $95. Bears looking for a downside play can consider using this stock with a buy stop above that level.

For more ways to play and other trading ideas from more than 30 top market pros, take a free trial to our Buzz & Banter.

A Quick Check Around the World

Asian trading closed with the Nikkei +0.28%, India -0.62, Hang Seng -0.54%, Shanghai (Closed), and Taiwan (Closed), Australia's ASX 200 -0.28%.

Aross the pond, we see the FTSE +0.50%, CAC +0.27%, DAX +0.28%

As of 8:10 AM EST, S&P Futures are trading -1.75 to 1097.75. Nasdaq futures are +1.75 to 1813.50.

A Look at Commodities

Over in commodities, crude oil is -0.30 to 77.43 while gold is -13.60 to 1106.50 this morning. Silver is -0.198 to 15.900 and copper -0.0225 to 3.2170.

The dollar Index is +0.1850 to 80.6600.

On the Radar

Economics

08:30 Initial Claims
08:30 Continuing Claims
08:30 Core PPI
08:30 PPI
10:00 Leading Indicators
10:00 Philadelphia Fed

Click here for the full trading radar.

Good luck today!
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

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