Jake Paul wants men to come clean.
The social-media influencer, professional boxer and YouTube star recently announced the launch of W, a men's personal-care brand "made to smell great and designed to work harder." And it'll be sold exclusively at Walmart (WMT) .
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Yes, while his bout with former heavyweight champion Mike Tyson has been pushed back to Nov. 15, Paul "always [wants] to smell fresh" and he wants a product that "smells amazing but isn't full of junk ingredients, and honestly, one that wasn't from 2006."
That's why the self-described clean freak came up with W, "to create products for guys that will boost their confidence and smell amazing, but also don't cost $20for a stick of deodorant," he said.
Now, what does all this have to do with Walmart's stock? Well, not a hell of a lot, come to think of it.
But since you're here, why don't we see what some of the experts have to say about the world's largest retailer?
TheStreet Pro's Paul Price, for example, said that in the past decade Walmart's price-to earnings multiple nearly doubled, from 15.1 to the current 28.5 times the fiscal 2024 profit estimate.
Expert from TheStreet Pro advises on WMT stock
"Longtime holders of the shares benefited greatly," Price wrote in a recent column. "Decade-long owners of WMT captured greater than 180% in total return even as [earnings per share], dividends and book value only advanced by from 31.1% to 39.1%."
"Those buying WMT now are paying highly inflated prices for shares which deserve to be selling well below today’s quote," he said.
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Price said that buying in when shares trade below their normalized valuations is almost always a winning move. "[The] biggest gains came from getting into WMT when its yield was clearly above its average level," he said.
His advice to investors?
"If you own WMT, consider taking profits," Price said. "If you were thinking about buying into WMT based on momentum and a great technical chart, think again."
The company is scheduled to report fiscal-second-quarter earnings on Aug. 15. In May, the company posted stronger-than-expected first-quarter earnings and said full-year profit could top its forecasts.
Walmart held its annual meeting on June 5, and on Monday several analysts issued research reports about the retailing giant.
Bank of America Securities analysts affirmed their buy rating and $75 stock price target, telling investors that Walmart's "strong value offering and omnichannel convenience continue to resonate across income cohorts and drive share gains across both grocery and general merchandise."
The annual meeting included a tour of Walmart's Sam's Club store in the chain's headquarters city, Bentonville, Ark.
B of A said that momentum at Sam's Club, Walmart's chain of membership-based retail stores, continues strong, supported by "digital engagement, deep value and exceptional curated items," especially through its Member's Mark brand.
Analyst cites AI and automation
Sam's Club has improved the customer experience through expanded omnichannel offerings as well as in-store tech like Scan & Go, the analysts said. Scan & Go enables customers to use their phones to scan items as they shop and pay for the items at a self-checkout lane. It's used by one-third of members of Sam's Club.
Walmart is also investing in digital shelf labels with a goal of putting them in 2,300 stores by 2026. These will enable the chain to implement dynamic pricing, raising or lower prices in line with demand.
The analysts said that store remodels, expanded online stockkeeping units (individual items for sale), and express delivery of three hours or less are driving broad-based strength and participation in Walmart+, the company's membership program, even among shoppers with lower incomes.
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Telsey Advisory analyst Joseph Feldman raised the firm's price target on Walmart to $75 from $70 and affirmed an outperform rating on the shares.
Discussions with Walmart's senior leadership have increased the analyst's visibility to and confidence in the company's ability to drive profitable multiyear growth and share gains, Feldman said.
Recent initiatives should help build a powerful ecosystem while new elements of that ecosystem should help strengthen the company's relationship with customers and generate profitable market-share gains, Feldman said.
Jefferies analysts raised the firm's price target on Walmart to $77 from $75 and maintained a buy rating on the shares after meeting with management, tasting new products, and learning more about the company's recent tech innovations.
Following the shareholders' week events, the analysts said, the investment firm is encouraged by Walmart's announcements and continues to believe that artificial intelligence and automation could generate $20 billion-plus of incremental earnings before interest and taxes for Walmart by fiscal 2029.
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