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Motley Fool Hidden Gems Investing

Retail: The Good, the Bad and the Ugly

Motley Fool Hidden Gems Investing

The Motley Fool

Investing, Business

4.33.1K Ratings

🗓️ 16 August 2019

⏱️ 40 minutes

🧾️ Download transcript

Summary

Walmart stock pops on another strong quarter, while shares of Macy's and Tapestry both suffer double-digit losses. Ron Gross and Jason Moser analyze the current state of retail and share why they believe Nordstrom and Under Armour have genuine opportunities to improve their standing with investors. We discuss the latest with General Electric, NVIDIA, Darden Restaurants, Berkshire-Hathaway, and Hologic. Plus, Motley Fool co-founder David Gardner discuss when to sell, when to add to your winners, investing takeaways from his recent trip to China, and his upcoming investor presentation on August 20th. (For more information on David Gardner's investor presentation visit http://Blast.Fool.com.)  Get $50 off your first job post at www.LinkedIn.com/Fool.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

We got a lot of retail news on this week's Motley Full Money and got a great interview with the one and only David Gardner.

0:06.5

And the show is brought to you this week by LinkedIn.

0:09.2

LinkedIn Jobs uses knowledge of both hard and soft skills to match you with the people who fit your role the best.

0:15.4

Post a job today at LinkedIn.com slash Fool and get $50 off your first job post.

0:21.0

Everybody needs money. That's why they call it money.

0:30.0

From Fool Global headquarters, this is Motley Full Money.

0:40.5

It's the Motley Full Money radio show. I'm Chris Hill joining me in studio this week's senior analyst Jason Moser and Ron Gross. Good to see you as always, gentlemen.

0:47.5

I knew you. We've got the latest earnings from Wall Street. David Gardner is our guest.

0:51.5

And as always, we'll give you an inside look at the stocks on our radar. But we begin with retail, the good, the bad and the ugly shares of Walmart up more than 6% this week after a strong second quarter report.

1:03.5

Ron, it was Walmart's 20th straight quarter of sales growth.

1:07.8

Not all retail is suffering strong second quarter from Walmart. Comparable sales up 2.8%. Up 7.3% on a two year combined basis.

1:16.8

That's the best two year comp growth in more than 10 years. Ecommerce accounted for half of the same store sales growth. And that was up 37%.

1:24.8

Company continues to get it done. It really is amazing that they've put up this kind of growth quarter after quarter now for five years.

1:34.8

Is this stock expensive because the stock is at if you're a shareholder, you've had a really nice run.

1:40.8

Yeah, so it's about 23 times forward earnings and that is actually not that expensive relative to like a Costco at 32.

1:47.8

Seems expensive relative to a target at 14. But Walmart is really putting up the numbers to kind of deserve that multiple.

1:54.8

I mean, just the strength and grocery is really impressive and continues. They're 2700 grocery pickup locations now 1100 stores doing delivery.

2:03.8

They've got their next day delivery program that covers 75% of the US population now for those of us and I guess I put myself in this category who was really down on Walmart a bunch of years ago.

2:14.8

Kudos to them for turning this business, especially in the US.

2:17.8

I mean, it was easy to be down on them, but I think during that time and I think we were all guilty of that.

2:22.8

You know, whether you're Amazon or Walmart, I mean, you need a physical infrastructure in place to get stuff from point A to point B.

2:30.8

Whether that's people buying stuff in store or you shipping stuff to people and Walmart is just a very good job of utilizing that physical infrastructure they already have and becoming more of the Omni Channel retail or just like Ron said, they really have executed well in the front.

...

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