Question

In: Finance

Purpose of Assignment The purpose of this assignment is to allow students the opportunity to research...

Purpose of Assignment

The purpose of this assignment is to allow students the opportunity to research a Fortune 500 company stock using the popular online research tool, Yahoo Finance. The tool allows the student to review analyst reports and other key financial information necessary to evaluate the stock value and make an educated decision on whether to invest.

Assignment Steps

Select a Fortune 500 company from one of the following industries:

  • Pharmaceutical
  • Energy
  • Retail
  • Automotive
  • Computer Hardware
  • Manufacturing
  • Mining

Review the financial information and statistics provided for the stock you selected and answer the following:

  • What is the ticker symbol of the company you chose?
  • What is the Current Stock Price?
  • What is the Market Cap for the stock you chose?
  • What is the Price to Earnings Ratio?
  • What is the Dividend and Yield?
  • What is the Enterprise Value?
  • What is the Beta?
  • Was there a Stock Split, and if so, when?
  • What was the closing stock price for the last 5 days?
  • What was the 52 Week High for this stock?
  • What is the Book Value per Share?
  • What type of rating are analysts recommending (i.e. buy, hold, etc.)?
  • What is the target price analysts are predicting for this stock?
  • What is the analyst's average revenue estimate for next year?
  • What are some of the significant news items and press releases made by the company over the last year?

Solutions

Expert Solution

The Fortune 500 Company that I have selected is Walmart and the company belongs to the ‘retail’ industry.

Ticker for Walmart is WMT.

Current stock price is $107.28

Market cap = $3071.6 billion

P/E ratio (TTM) = 37.54

Dividend (forward) = 2.12 and trailing annual dividend = 2.09

Forward Yield = 1.95% and trailing yield = 1.93%

Enterprise Value = $383.16 billion

Beta = 0.67

Yes, there was a stock split and it was on 20th April 1999.

Closing price for the last 5 days is shown below:

Date Closing price ($)
9 Aug 2019                        107.28
8 Aug 2019                        108.52
7 Aug 2019                        107.67
6 Aug 2019                        106.74
5 Aug 2019                        105.30

52 week high is $115.49

Book value per share = $23.83

As of August the stock of Walmart has largely hold and buy ratings. The stock has a total of 1 sell rating, 1 underperform rating, 15 hold ratings, 7 buy ratings and 8 strong buy ratings.

Target price that analysts are predicting is $111.93

Analyst's average revenue estimate for next year is around $520 billion.

Some of the significant news items and press releases made by Walmart over the last year are:

(i) Walmart will intensify its focus on online retail and will take Amazon heads on. For this purpose the company is looking to make several acquisitions in important markets. Recently the company purchased online giant Flipkart in India to establish its presence in the rapidly growing online retail market in the region.

(ii) In its press release dated 16th May 2019 the company said that it will focus more on innovation, speed and flexibility to grow the company and better serve its customers.

(iii) The company also announced the introduction of its online pet pharmacy - Walmartpetrx.com


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