For Immediate Release
Chicago, IL – February 27, 2017 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Wal-Mart Stores Inc. (NYSE:WMT) (NYSE:WMT – Free Report ), The Home Depot Inc (NYSE:HD). (NYSE: HD – Free Report ), E I Du Pont De Nemours and Co (NYSE: DD – Free Report ), Dow Chemical Co (NYSE: DOW – Free Report ) and Johnson & Johnson (NYSE:JNJ) Inc. (NYSE: JNJ – Free Report ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .
Here are highlights from Friday’s Analyst Blog:
Dow 30 Stock Roundup: WMT, HD, BA and More
The Dow notched up a record streak of gains over a holiday shortened week. Markets were closed on Monday to commemorate President’s Day. The index increased on Tuesday after key components posted encouraging earnings results. President Trump’s comments and his possible policy proposals continued to dominate proceedings and were primarily responsible for markets moving higher. Oil prices also moved higher, leading to gains for the energy sector.
Last Week’s Performance
Markets were closed on Monday to commemorate President’s Day. The index advanced 0.6% on Tuesday thanks to upbeat earnings reports from Wal-Mart Stores Inc. (NYSE:WMT – Free Report ) and The Home Depot Inc. (NYSE: HD – Free Report ). The Dow logged its eighth straight session of closing records, its longest winning streak since Jul 20, 2016
President Donald Trump’s appointment of Lt. Gen. H.R. McMaster to be his national security adviser also boosted investors’ sentiment. Many consider McMaster to be the smartest and most capable army officer of his generation, someone who has led the troops in the 1991 Gulf War and the Iraq War.
The index gained 0.2% to close at an all-time high for the ninth straight session on Wednesday. The blue-chip index logged its best record setting streak in three decades. But, the broader market struggled after minutes from the Fed’s last meeting showed that the central bank is comfortable in hiking rates “fairly soon.” A pullback in the price of oil adversely affected energy companies.
The Dow closed about 30 points higher on Wednesday, with E I Du Pont De Nemours and Co (NYSE: DD – Free Report ) contributing most of the gains. The company is poised to win an antitrust approval from European Union regulators for its $130 billion merger with Dow Chemical Co (NYSE: DOW – Free Report ). The regulator won’t seek third parties' views to the changes, a clear indication that it will approve the deal.
The index increased 0.2% on Thursday, gaining for the 10th consecutive session in a row despite concerns about unreasonable valuations and Trump’s likely fiscal stimulus measures. The Dow was boosted by healthcare majors such as Johnson & Johnson Inc. (NYSE: JNJ – Free Report ), which gained 1.8%.
A surge in oil prices helped to lift the energy sector. Crude prices received a boost from fresh data which showed that inventories had increased by a smaller amount than was expected, by 600,000 barrels during the week ended Feb 17.
Components Moving the Index
Wal-Mart’s fourth-quarter adjusted earnings of $1.30 per share beat the Zacks Consensus Estimate of $1.29 by 0.8% on higher comps. Total revenue of the retailer came in at $130.9 billion (including membership and other income). The figure beat the Zacks Consensus Estimate of $130.6 billion by 0.23% and increased 1.0% year over year.
Adjusted earnings in fiscal 2017 were $4.32 per share, which beat the Zacks Consensus Estimate of $4.31 by 0.23%. Total revenue came in at $485.9 billion (including membership and other income). The figure beat the Zacks Consensus Estimate of $485.1 billion by 0.16% and increased 0.8% year over year.
Zacks Rank #4 (Sell)-rated Wal-Mart expects earnings in the range of 90 cents to $1.00 per share for the 13-week period ending Apr 28. For fiscal 2018, the company expects adjusted earnings in the range of $4.20−$4.40 per share, assuming full-year effective tax rate around 32%. (Read: Wal-Mart (WMT) Q4 Earnings, Revenues Beat on Strong Comps )
In a separate development, Wal-Mart announced a 2% hike in its annual cash dividend to $2.04 per share. The annualized dividend now amounts to a dividend yield of 3.5%, based on Wal-Mart’s closing price of $71.45 as of Feb 21, 2017. (Read: Wal-Mart (WMT) Hikes Dividend, Boosts Shareholder Value )
Home Depot posted fiscal fourth-quarter earnings of $1.44 per share, which escalated 23.1% from $1.17 in the year-ago quarter and beat the Zacks Consensus Estimate of $1.33. Net sales advanced 5.8% to $22,207 million from $20,980 million in the year-ago quarter. However, the top line fell short of the Zacks Consensus Estimate of $21,806 million.
Zacks Rank #3 (Hold) rated Home Depot’s adjusted earnings for fiscal 2016 came in at $6.45 per share, up 18.1% year over year and ahead of the Zacks Consensus Estimate of $6.34. Net sales for the fiscal jumped 6.9% year over year to $94,595 million and cruised ahead of the Zacks Consensus Estimate of $94,161 million.
Following the robust fiscal 2016 performance, Home Depot initiated guidance for fiscal 2017. The company project both sales and comps to grow about 4.6%. Diluted earnings per share are expected to increase 10.5% to $7.13, including share repurchases worth nearly $5 billion.
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free .
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
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Wal-Mart Stores, Inc. (WMT): Free Stock Analysis Report
Home Depot, Inc. (The) (HD): Free Stock Analysis Report
E.I. du Pont de Nemours and Company (DD): Free Stock Analysis Report
Dow Chemical Company (The) (NYSE:DOW
Johnson & Johnson (JNJ): Free Stock Analysis Report
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