Skip to main content

Wal-Mart Stores Inc (WMT) Stock Soars on Guidance, $20 Billion Buyback

By U.S. News & World Report

It’s no secret the U.S. retail industry has been under pressure in 2017. However, Wal-Mart Stores Inc (NYSE: WMT) has been fighting tooth and nail against Amazon.com, Inc. ( AMZN) and other competitors, and its latest guidance indicates the company — and WMT stock itself — is holding its own.

On Tuesday morning, Walmart said its sales will grow by about 3 percent in fiscal 2019, with online sales growth surging 40 percent. In addition, Walmart reiterated its full-year 2018 adjusted earnings per share guidance of between $4.30 and $4.40. The company also expects EPS to grow 5 percent in 2019.

Finally, the company announced plans to return an additional $20 billion to its shareholders via WMT stock buybacks.

[See: 5 of the Best Stocks to Buy for October.]

Walmart stock climbed more than 4 percent on Tuesday following the news.

The new guidance suggests WMT is taking Amazon extremely seriously and strategic online and grocery initiatives seem to be paying off. Walmart also announced it will be adding 1,000 new pickup locations for online grocery orders. Amazon closed its acquisition of Whole Foods in August and immediately began cutting grocery prices.

Walmart has been targeting online sales in recent years, investing roughly a third of its spending budget into its digital strategy. Discounts on online orders and free shipping on purchases of at least $35 have pressured online sales margins but have delivered robust sales growth.

“It is clear that Wal-Mart intends to continue to turn up the heat online,” Moody’s Corp. analyst Charlie O’Shea says, according to Bloomberg. “We still believe Amazon’s lead in online retail is insurmountable; however, Walmart continues to widen the gap between itself and all other brick-and-mortar retailers.”

Morgan Stanley analyst Simeon Gutman says the key number for Walmart is its 5 percent EPS growth target for 2019. Gutman says he expects Walmart stock to “grind higher” as long as it stays on track to hit its 5 percent target.

[Read: How Investors Can Capitalize on the Growing Success of E-Commerce.]

Despite the SPDR S&P Retail ETF ( XRT) being down 6.5 percent overall in 2017, Walmart stock is now up more than 20 percent year-to-date. As for Amazon, AMZN stock up 30 percent this year, but who’s counting?

More from U.S. News

7 Best Dividend Stocks to Buy for the Rest of 2017

The Retailers Guide to Beating Amazon.com (AMZN)

9 ETFs to Buy When the Market Tanks

Wal-Mart Stores Inc (WMT) Stock Soars on Guidance, $20 Billion Buyback originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
Read Next Story

Related News

Peter Laviolette out as Washington Capitals’ head coach

Former Md. chief of staff McGrath found and killed in Tennessee during arrest

U.Va. running back who survived deadly campus shooting shares his story