Company Update (NYSE:WMT): [$$] JD, Wal-Mart Make a Chinese Connection

[at Barrons.com] – MKM Partners We think the agreement between JD.com and Wal-Mart Stores has synergies for both sides, but hold judgment on valuation until there is more color on revenue implications JD (JD) and Wal-Mart (WMT) announced a strategic alliance, merging [Wal-Mart’s] Yihaodian marketplace assets into JD.com, collaboration on Wal-Mart’s online direct sales efforts through JD’s marketplace businesses and Wal-Mart receiving a 5% stake in JD. Separately, data released on JD’s June 18 anniversary sale (orders up 60%) suggest a solid result against a tough comp, which should ease some recent concern on growth deceleration. Read more on this. Wal-Mart Stores Inc. (WMT) , with a current market cap of $222.72B, opened at $70.95. Shares have traded today between $70.95 and $71.72 per share and has traded between $56.30 and $74.14 over the past 12 months. Priced at 16.65x this year’s forecasted earnings, WMT shares are relatively expensive compared to the industry’s 9.53x forward p/e ratio. And for those looking to make a return holding the stock, the company pays shareholders $2.00 per share annually in dividends, yielding 2.82%. In a review of the consensus earnings estimate this quarter, 25 sell-side analysts are looking at $1.02 per share, which would be $0.06 worse than the year-ago quarter and a $0.04 sequential increase. The full-year EPS estimate is $4.27 which would be a $0.32 setback than last year’s full-year earnings. The quarterly earnings estimate is predicated on a consensus revenue forecast of $120.12 Billion. If reported, that would be a 0.09% decrease over the year-ago quarter. More recently, Jefferies upgraded WMT from Hold to Buy (Jun 6, 2016). Previously, RBC Capital Mkts Initiated WMT at to Underperform. The average price target for WMT shares by the analysts covering it is $69.11, which is 2.59% below where the stock opened. See more in (NYSE:WMT) Similar Articles: Stock Update: Wal-Mart Stores Inc (NYSE:WMT) – U.S. top court rejects Wal-Mart, Wells Fargo class action appeals Stock Update: Wal-Mart Stores Inc (NYSE:WMT) – U.S. court shoots down Puerto Rico tax on Wal-Mart Stock Update: Wal-Mart Stores Inc (NYSE:WMT) – Wal-Mart Japan to focus on remodeling stores, no plans to exit market