Blog

Response to post- NC
****posts by adding recommendations to extend their thinking or posing questions to help them consider components they may have missed*****
25
What are some of the pros and cons about the stock?
What are some of the strengths and weaknesses of the company according to the analysts?
The con to buying Walmart’s stock is widely due to the effects of the pandemic as it affects most retailers. Since 2020, Walmart had a drop in profit for that year and a huge decrease in equity. The price/book value is high, which means the stock is overvalued. The price/cash flow value is also relatively high, which means investors will usually avoid these stocks because its share price is high compared to free cash flow. The lower this value is, the more likely the stock would be a better bargain. Although, as such a large company due to their large range of products and low prices, they have great potential for re-growth. Especially since ROE and ROA are both positive, this shows the company can still use its equity investments to generate profit for investors and how well the company is managing its resources and assets to still be able to generate a high profit throughout the pandemic.
Walmart is a company that is able to adapt more easily during the pandemic compared to other grocery stores due to their wide range of products. Customers will still buy necessities at good, low prices and return home to quarantine as needed. They were also able to adapt to e-commerce as well, where patients can order products and produce online to be delivered or picked up to reduce exposure. The company wo

uld still need to make an investment in technology to use e-commerce as efficiently as established companies like Amazon, that thrives in that area. Walmart has the advantage of being a huge company with thousands of stores. Although it still may be difficult to compete with companies such as Amazon and Target, they are still able to stay on top compared to smaller companies.
What features of this report do you find unique or interesting?
The features of the report on msn that I found interesting are the graphs that shows the company’s potential or growth, profitability and its price ratios over the years. Sometimes visual representation can help predict their future. You can see how the pandemic has affected the company, compared to its pre-pandemic history to predict what the company could be like post-pandemic.
Based on the information provided in this report, would you purchase this security for your portfolio?
Based on the information provided in this report, I would not purchase this security for my portfolio as it does not seem to be a bargain and the company seems to still be digging its way out from the pandemic and is too risky.
There is a great deal of investment information available to investors. What investment information do you think is important for investors to know?
The investment information I think is important for investors to know would include trends in revenue, its level of potential growth and ability to generate profit through ROA and ROE, how the company treats dividends, the price/book value and price/cash flow, and how effective the company’s management team is.