Diamonds and Dogs

2/19/19

Wal-Mart (WMT) flexing its muscle. The world's largest retailer is up 3% not far from a 52 week high following earnings. Walmart beat expectations as sales rose 1.9% to $137.7 billion. U.S. fourth quarter comp sales grew 4.2% vs. +3.2% estimates. The company also raised guidance for 2019. E-commerce sales in the U.S. jump 43% year-over-year during the quarter driven by grocery pickup in 2100 stores and delivery service in nearly 800 stores. By the end of fiscal 2020, Walmart expects to include grocery pickup in 3,100 locations and delivery in 1,600 stores.

Weight Watchers International (WTW) losing in the wrong places. The weight loss company is down 3% following a downgrade due to concerns about falling active-user numbers during the most important period of the year. Back in 2015, Weight Watchers received the powerful endorsement of Oprah Winfrey and the stock rose sixfold in the next three years. However the last year has been painful as the stock is down 70%. Sounds like a round trip.