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Stocks to Watch Today: Ulta Beauty, Walmart, and Cisco

Published 08/16/2024, 02:22 AM
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In a day of significant market movements, three major companies have captured investors’ attention with notable developments and stock price shifts. Ulta Beauty (NASDAQ:ULTA) saw a surge following news of Warren Buffett’s investment, Walmart (NYSE:NYSE:WMT) impressed with strong earnings, and Cisco (NASDAQ:CSCO) announced restructuring plans alongside better-than-expected results.

Ulta Beauty Shares Soar on Warren Buffett Backing

Ulta Beauty (ULTA) shares soared by 11.28% to $366.16 after Warren Buffett’s Berkshire Hathaway (NYSE:BRKa) revealed a new stake in the company. The investment, valued at $266.3 million as of the end of the second quarter, represents a vote of confidence from one of the world’s most renowned investors. Despite the recent uptick,

Ulta’s stock still shows negative returns year-to-date (-25.27%) and over the past year (-20.15%). With a market capitalization of $17.472 billion and a price-to-earnings ratio of 12.84, analysts maintain an average price target of $464.77 for the beauty retailer.

Walmart Climbs After Excellent Q2 Results

Walmart (WMT) stock climbed 6.63% to $73.21 following its impressive second-quarter earnings report. The retail giant beat expectations with adjusted earnings per share of $0.67 against an expected $0.64, and revenue of $169.3 billion versus the anticipated $168.52 billion.

Walmart’s success was driven by strong performance across various segments, including a 21% increase in global e-commerce sales and a 26% growth in its global advertising business.

The company’s market capitalization now stands at $588.988 billion, with a price-to-earnings ratio of 29.47. Walmart also raised its full-year outlook for fiscal 2025, citing continued patronage from higher-income consumers.

Cisco Reports Better than Expected Earnings, Continues Restructuring Plans

Cisco Systems shares jumped 6.89% to $48.57 after the company reported better-than-expected quarterly earnings and announced significant restructuring plans.

The networking equipment manufacturer posted adjusted earnings of 87 cents per share, surpassing the expected 85 cents, on revenue of $13.64 billion. However, this revenue figure represents a 10% decrease from the previous year. Cisco plans to cut 7% of its global workforce, approximately 5,940 jobs, in its second major round of layoffs this year.

The restructuring is expected to result in $1 billion in pretax charges as the company shifts focus towards high-growth areas such as artificial intelligence and cybersecurity. Cisco’s market capitalization reached $195.699 billion, with a price-to-earnings ratio of 17.89.

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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

This article was originally published on The Tokenist. Check out The Tokenist’s free newsletter, Five Minute Finance, for weekly analysis of the biggest trends in finance and technology.

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